THE Securities and Exchange Commission (SEC) issued an advisory against investing in another unauthorized group, RGS World Marketing Corp., which also operates under the names RGS Online Shop, RGS Online Marketing, and RGS Online Foundation.
The groups are said to be headed by Rodolfo Garcia Salarda, Jr., Henje Noble Cuadra, and Engie Esteves.
RGS Online Shop/RGS Online Marketing is registered with the Department of Trade and Industry (DTI) under Business Name No. 2240745 on Oct. 14, 2020.
Meanwhile, RGS World Marketing is a corporation registered with the SEC under company registration No. CS202069716 on Dec. 10, 2020.
RGS Foundation is not registered with the commission.
RGS World Marketing’s main offering involves a scheme wherein investors can easily earn money.
“Investigation disclosed that the lynchpin of RGS World Marketing Corp.’s scheme is its First In First Pay Out Policy and No Invite No Pay Out Policy, which means an investor is no longer required to do anything, [for example], sell RGS Soap and RGS Liniment Oil among others, except to wait for the return of his or her money,” the corporate regulator said in an advisory.
The entities are in multi-level marketing, which involves chain distribution or pyramid sales, the SEC said, as it reminded the public that the scheme is “prohibited by the Republic Act No. 7394 or the Consumer Act of the Philippines as the company relies heavily on recruitment of potential members rather than selling its products.”
The commission also said that RGS World Marketing’s multi-level marketing is a front for its unauthorized investment collection activities.
The entities are reportedly offering a scheme called “complans,” where investors are grouped according to the plans they choose.
Those lured in the scheme are promised a return of at least 250% within a month or so, depending on the plan and the payout schedule they sign up for.
Investors can put in as low as P1,000, with a promise of a guaranteed growth to P3,500; while investments worth P5,000 are promised P17,500.
Those who invest P10,000 in the scheme are promised a growth of 250% to 300%, with returns ranging from P35,000 to P40,000.
A P20,000 investment, meanwhile, may earn up to P80,000.
RGS World Marketing also offers investors three different ways of earning: through referral bonuses, board bonus or payouts, or through direct selling.
Those who opt to earn via direct selling will receive RSG products for use or for sale for every P1,000 worth of membership.
The SEC maintains that the entities do not have a license to collect investments from the public. It noted that the offer of MGS World Marketing resembles a Ponzi scheme, where investors earn through the investments of new recruits.
“Please be informed that although RGS World Marketing Corp. is a registered corporation under the Revised Corporation Code of the Philippines, and while RGS Online Shop/RGS Online Marketing are registered with the DTI, nonetheless, all of them are not authorized to solicit investments from the public as they did not secure prior registration and/or license to solicit investments from the Commission as prescribed under Section 8 of the Securities Regulation Code,” the commission warned.
The SEC said the advisory against RGS World Marketing is the 10th warning the commission issued on illegal investment schemes this year. — Keren Concepcion G. Valmonte