The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on RGS WORLD MARKETING CORP, 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 entity, its representatives or any entities engaged in schemes which promises ridiculous rates of return with little or no risks.
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.
The Securities and Exchange Commission (“Commission”) has received information that individuals or group of persons representing RGS WORLD MARKETING CORP.have been soliciting investment fromthe public.
It appears that RGS WORLD MARKETING CORP. operates under different business names, such as: RGS ONLINE SHOP, RGS ONLINE MARKETING and RGS FOUNDATION.
Records of the Commission showed that RGS WORLD MARKETING CORP.is a corporation registered with the Commission on 10 December 2020 under Company Registration No. CS202069716.Furthermore, RGS ONLINE SHOP/RGS ONLINE MARKETINGwas issued with a Business Name Registration by the DTI under Business Name No. 2240745 on 14 October 2020. However, RGS FOUNDATION is not registered with the Commission.
RGS WORLD MARKETING CORP. and its related entities are headed by Mr. Rodolfo Garcia Salarda, Jr., Mr. Henje Noble Cuadra, and Mr. Engie Esteves.
Based on information gathered by the Commission, RGS WORLD MARKETING CORP. and its related entities appears to be adopting a certain scheme such as the COMPLANS to which all investors are grouped according to the Complans they choose. The minimum investment is Php1,000 and one can invest with no limit. Thus, the investors’ Php1,000 will turn to 3,500 (250%); Php5,000 to Php17,500 (250%); Php10,000 to Php35,000/P40,000(250%to 300%); Php20,000 to Php80,000 (300%) within a month or so depending on the Complan and payout system. And the higher amount, the higher the payout.
As shown in various Facebook posts, there are three (3) ways to earn in RGS WORLD MARKETING CORP.:
1.Referral Bonus (More invites, more bonus and Payouts)
2.Direct Selling (in every Php1,000 membership, you will have RGS Products for personal use or sale)
3.Board Bonus/ Payouts (with no time frame)
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 ,i.e., sell RGS Soap and RGS Liniment Oil as among others, except to wait for the return of his or her money.
At the onset, the Multi-Level Marketing of RGS WORLD MARKETINGCORP. appears that the company is engaged in Chain Distribution or Pyramid Sales Scheme which 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. Taken as a whole, and based on the reports, the alleged Multi-Level Marketing is a sham to conceal the fact that RGS WORLD MARKETING CORP. is engaged in solicitation of investment.
The public must be wary that any promise of massive rates of return with little or no risk is an indication of a Ponzi Scheme where monies from new investors are used in paying fake “profits” to earlier investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors. It must be clear that entities engaged in such activities likely tend to disappear shortly to the prejudice of their stakeholders.
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 PUBLICas 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 public should be made aware that the issuance of a Certificate of Incorporation only grants entities juridical personality but does not constitute an authority or license for the corporation to engage in activities that require a secondary license from the SEC such as License to Issue, Sell, or Offer Securities to the Public.
Consequently, the public is advised to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of RGS WORLD MARKETING CORP.,RGS ONLINE SHOP/RGS ONLINE MARKETING and RGS FOUNDATION and other related entities engaged in solicitation activities.
Those who act as salesmen, brokers, dealers or agents of RGS WORLD MARKETING CORP., RGS ONLINE SHOP/RGS ONLINE MARKETING and RGS FOUNDATION and other related entities in selling or convincing people to invest in the investment scheme being offered by these entities including solicitations and recruitment through the internet may likewise be prosecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (P5,000,000.00) 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 criminally 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.
The public is hereby advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of RGS WORLD MARKETING CORP., RGS ONLINE SHOP/RGS ONLINE MARKETING and RGS FOUNDATION and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of said entity.
Should you have any information regarding any investment solicitation by any individuals or group of individuals representing RGS WORLD MARKETING CORP.,RGS ONLINE SHOP/RGS ONLINE MARKETING and RGS FOUNDATION you can send your report to the EIPD at email@example.com
For the guidance of the public.
Pasay City, 02March2021