Soap, egg distributor halted from doing ‘illegal’ investment scheme

The Securities and Exchange Commission (SEC) has issued an order to stop an “illegal” investment scheme operated by Bacolod City-based RGS World Marketing Corp. in Western Visayas.

In an order dated March 1, the SEC en banc directed RGS World to immediately cease and desist from engaging in the “unlawful or unauthorized solicitation, offer and/or sale of securities until it has filed the requisite registration statement and secured the necessary approval from the SEC.”

RGS World, its directors Rodolfo Garcia Salarda Jr., Leah Pasis Salarda, Rodelyn Balico Salarda, Henje Noble Cuadra and Ryan Ladoing, as well as its officers, operators, representatives, salesmen and agents were ordered to cease their internet dealings relating to the investment scheme.

RGS World is a duly registered corporation with the SEC. However, it has never secured a secondary license as issuer of securities or broker dealer nor registered any securities for public offering pursuant to the Securities Regulation Code.

Records from the Food and Drug Administration (FDA) also showed that RGS World and its affiliated entities have no license to operate a distribution business. The company distributed products such as soap, liniment oils, rice, eggs and other poultry products “to disguise its investment scheme as a legitimate distribution business,” the SEC said in a press statement on Thursday.

The company and its directors were also prohibited from transacting any business involving funds in its depository banks, and from transferring, disposing, or conveying any related assets to ensure the preservation of the assets of investors.

The SEC issued the order following investigations by the SEC Enforcement and Investor Protection Department, SEC Bacolod Extension Office and SEC Iloilo Extension Office, which showed that RGS World had been selling and/or offering compensation plans worth P1,000 to P20,000, with promised returns ranging from P3,500 to P80,000.

To entice prospective investors, the company and its agents have been using Facebook accounts to show photos of investors who allegedly received payouts.

Investors were promised nonmonetary returns such as frozen goods and rice as well as additional bonuses, incentives and products by referring or recruiting more members.