The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on LAO RAZON TRADING, warning the public of the individuals and groups involved in such activities. The advisory defines the activities behind the scheme, and advises the public to not to invest or stop investing in any investment scheme offered by the said company.
In support of this view, Coins.ph does not endorse or is affiliated in any way with such activities or products. Moreover, we have a zero tolerance policy on fraudulent activities and potentially scamming practices. In a separate article, we have enumerated tips on how you can avoid investment schemes and other online scams. We urge our customers to be extra diligent with their funds and to act within our User Agreement.
This Advisory is prompted by inquiries received by the Securities and Exchange Commission (“SEC”) from the public on whether or not LAO RAZON TRADING and/or LAO RAZON MARKETING, headed by its President, John Luis Razon, is registered with the SEC and on information gathered by the Commission through postings on the internet where LAO RAZON TRADING and/or LAO RAZON MARKETING promises 30% up to 500% compounding income within a one (1) month to six (6) month period upon giving an initial investment of at least Five Hundred Pesos (Php 500.00) to as high as Five Million Pesos (Php5,000,000.00).
As posted online, LAO RAZON TRADING and/or LAO RAZON MARKETING
offers a number of package types or compensation packages, to wit:
In addition, their members under the HYBRID BOOSTER PROGRAM PROMOTIONS may also earn as much as Twenty-eight Thousand pesos (Php 28,000.00) with minimum purchase of Two Thousand pesos (Php 2,000.00) worth of products plus five percent (5%) direct referral commission and one percent (1%) interest referral commission bonus according to the group’s performance or with every purchase made as shown in the table posted online. To wit:
And lastly, members can also receive rewards such as laptops, motorcycles, sedan cars, SUV vehicles, sports cars and house and lots under the HYBRID BOOSTER MULTIPLIER INCENTIVES as posted online.
Accordingly, the scheme of LAO RAZON TRADING and/or LAO RAZON MARKETING involves the offering and sale of securities, in the form of investment contracts, to the public.
Therefore, the said offer and sale of securities must be duly registered with the Commission and that the concerned corporation and/or its agents must have appropriate registration and/or license to sell such securities to the public in accordance with Section 8 of the Securities Regulation Code (SRC).
However, LAO RAZON TRADING and/or LAO RAZON MARKETING are NOT REGISTERED as a corporation or partnership with the Commission and have NO SECONDARY LICENSE to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC) since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the Securities Regulation Code.
Hence, those who act as salesmen, brokers, dealers or agents or claim to act as such for LAO RAZON TRADING and/or LAO RAZON MARKETING in selling or convincing people to invest in the investment scheme being offered by said entity including solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million pesos (Php 5,000,000.00) or penalty of Twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.
Also, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of Securities and Exchange Commission vs. Oudine Santos (G.R. No. 195542, 19 March 2014).
Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.
Everyone is reminded that aside from the strict penalties imposed by the Commission for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation it enforces, the Bayanihan to Heal as One Act (Republic Act No. 11469) also punishes those participating in
cyber incidents that make use or take advantage of the current crisis situation to prey on the public through scams, phishing, fraudulent emails, or other similar acts.
In view thereof, the public is advised NOT TO INVEST or STOP INVESTING in any scheme offered by LAO RAZON TRADING and/or LAO RAZON MARKETING and exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of said entities.
Thus, the public is encouraged to make a conscious effort before making or placing their investments in any investment scheme offered by said entities especially during these difficult times.
Should you have any information regarding any investment solicitation by any individuals or group of individuals representing LAO RAZON TRADING and/or LAO RAZON MARKETING, please email your report to the Enforcement and Investor Protection Department (EIPD) at firstname.lastname@example.org
For the guidance of the public.
Pasay City. 06 April 2020.