The Securities and Exchange Commission (SEC) ordered RGS World Marketing Corp., which has been targeting investors in Western Visayas, to stop its illegal investment scheme.
A cease and desist order issued has been issued against RGS World from engaging in unlawful or unauthorized solicitation and/or sale of securities until it has filed the requisite registration statement and secured the necessary approval from the SEC.
The CDO also covers RGS World’s directors Rodolfo Garcia Salarda, Jr., Leah Pasis Salarda, Rodelyn Balico Salarda, Henje Noble Cuadra, and Ryan C. Ladoing, as well as other officers, operators, representatives, salesmen, and agents.
They have been barred from transacting any business involving funds in RGS World’s depository banks, and from transferring and disposing any related assets to ensure the preservation of the assets of the investors.
Bacolod-based RGS World was found offering compensation plans worth P1,000 to P20,000, with promised returns ranging from P3,500 to P80,000.
Investors were also promised non-monetary returns such as frozen goods and rice, as well as additional bonuses, incentives and products by referring or recruiting more members.
RGS World likewise distributed products such as soap, liniment oils, rice, eggs, and other poultry products, to disguise its investment scheme as a legitimate distribution business.
“The EIPD was able to show that the investment scheme of RGS WORLD involves the pooling of the resources consisting of the moneys of its investors which are actually utilized to satisfy and pay the guaranteed returns of its existing investors,” the SEC said.
SEC’s Bacolod office has already received complaints from numerous investors claiming that they have not received the profits or products promised to them.
Records from the Food and Drug Administration also showed that RGS World and its affiliated entities have no license to operate a distribution business, according to the EIPD.
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