MANILA, Philippines — Securities and Exchange Commission (SEC) Chairperson Francis Lim is drawing a hard line on any possible settlement involving MFT Group founder Maria Francesca “Mica” Tan: face the criminal charges first, then talk about repayment.
Lim’s latest position, reported by Bilyonaryo, reinforces what he has previously told The Philippine Star—that Tan and the MFT Group cannot expect regulators to negotiate a resolution while she remains outside the Philippines and subject to outstanding arrest warrants.
“If they surrender, they can show the color of their money,” Lim earlier said, stressing that any serious discussion must be backed by both surrender and a credible source of funds for investors.
The confrontation comes as Tan faces mounting legal pressure over alleged unauthorized investment-taking and related criminal cases involving MFT Group and Foundry Ventures.
SEC wants more than promises
Lim has previously indicated that the SEC could consider talking to Tan and MFT Group if they can demonstrate that actual funds are available and placed in a bank escrow account, together with a concrete payment plan for investors.
In June, Lim told The Philippine Star that the commission could consider discussions if MFT and Tan could show “the color of their money” through an escrow arrangement and a payment plan. He emphasized that repayment to investors remains a central concern.
That condition is significant because the dispute is no longer simply about whether Tan intends to repay creditors. Regulators are demanding evidence that repayment is financially possible and can be carried out under a legally enforceable framework.
Tan has said she is willing to come home
Tan, for her part, has publicly said she intends to return to the Philippines and face the cases against her.
In July, Tan told creditors that she planned to come home, defend herself and cooperate with authorities, even acknowledging that she could be detained upon her return. She said resolving the SEC case was her top priority and that she wanted to continue working toward solutions for creditors.
That position, however, has not erased the legal obstacles.
Tan is facing an arrest warrant from the Taguig Regional Trial Court Branch 70 involving alleged violations of the Securities Regulation Code and the Cybercrime Prevention Act. A separate Lipa City, Batangas court also issued an arrest warrant in March 2025 in connection with syndicated estafa, with no bail recommended, according to reports citing the SEC.
Interpol red notice raises the stakes
The case became international in scope in June after Interpol issued a red notice for Tan.
The notice was requested by the SEC as authorities sought to locate Tan and bring her before Philippine courts. A red notice is a request to law-enforcement authorities worldwide to locate and provisionally arrest a wanted person pending extradition, surrender or a similar legal process; it is not itself an international arrest warrant.
Tan had earlier acknowledged the red notice and said her legal teams were pursuing available remedies while maintaining her intention to resolve the SEC case and address creditor obligations.
What triggered the SEC case?
The SEC filed a criminal complaint in April 2024 against MFT Group and Foundry Ventures over alleged unauthorized investment-taking and misrepresentations in financial statements.
According to SEC findings reported by The Philippine Star and the Philippine News Agency, the companies allegedly offered investors returns of 12% to 18%, with post-dated checks and borrower-lender agreements used in the transactions. The SEC said the activities had characteristics similar to a Ponzi scheme.
The DOJ subsequently indicted MFT Group, Foundry Ventures and company officers over alleged violations connected to the investment-taking activities.
The SEC also issued a cease-and-desist order against MFT Group in January 2024, which was made permanent in April of that year, according to The Philippine Star.
The money question remains the biggest issue
For investors and creditors, the central question is increasingly straightforward:
Where is the money—and how much can actually be returned?
That is why Lim’s demand for surrender and proof of funds matters. The SEC has signaled that a proposed repayment arrangement cannot simply rely on assurances or future business plans. It wants a demonstrable pool of money and a structured mechanism for distributing payments.
Tan has previously argued that her continued involvement could help creditors recover money and warned that her detention could complicate repayment efforts. But regulators have maintained that criminal proceedings must still be respected.
For now, the two sides appear to be talking about the same destination—resolution and repayment—but from very different starting points.
Tan says she wants to return, face the cases and help creditors.
Lim’s message is more direct:
Surrender first. Prove the money exists. Then talk.
And with criminal cases, arrest warrants and an Interpol red notice already hanging over the controversy, the next move could determine whether the long-running MFT Group dispute finally enters a genuine repayment phase—or another chapter of legal confrontation.
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