7 charged as investors lose P12M in new scam

[Old55]

On 9/15/2021 at 1:54 PM, sonjack2847 said:

A few of those schemes are going around here. Targeting poor and not so poor people who may not have access to the internet or they just have had no education or experience outside of their Purok. In the beggining some people get paid out so spread the word and that is how these schemes get away with it. Don`t forget a lot of expats got caught with something similar maybe 8 years ago in Cebu.

You mean the Rural Bank scheme someone we know was involved with?

[Gandang Smile]

On 9/16/2021 at 1:09 AM, Jollygoodfellow said:

Well they must of been sort of working legally as they were registered with The Securities and Exchange Commission (SEC) for the first year. Not sure what happened or how they could register to conduct business.

Few companies may bother registering with the SEC, but on trade categories other than trading and sales of securities.

Most "companies" involved in the scams here in Mindanao never got SEC-registered. I remember seeing the booth of a certain Rigen Marketing at Gaisano Mall of Davao, promising stellar returns on aggressive "FX trading".

There was a line of at least 100 people waiting to put their hard- (sometimes not-so-hard) earned cash, from placid-looking Lolas to youngsters with e-gamers caps. This was at least 4 years ago. I read their "top executive" has just been arrested this year (February 2021), with a loot of P8 billion. I can only imagine how many more they got away with, in the past 4 years or so.

Rigen Marketing exec arrested over alleged pyramiding scam in Davao
By Margret Fermin -February 4, 2021

A top executive of Rigen Marketing, a company allegedly involved in pyramiding and stealing P8 billion from its victims in Davao, was arrested.

In a report by John Consulta on GMA News TV “Balitanghali” on Thursday, the suspect was identified as Kharl Dexter Auditor, who was arrested by NBI-Laguna District Office personnel at his house in Laguna under a warrant of arrest.

Auditor’s company is said to have victimized thousands of investors in Davao and other neighboring provinces.

“We have deployed our teams to arrest personalities like Kharl Dexter Auditor, persons behind the Rigen marketing financial scam, allegedly who have amassed almost P8 billion,” said Eric Distor, director of NBI.

The NBI said that Rigen marketing promises up to 400% profit to their investors so the number of investors in Tagum, General Santos, Davao del Sur, and Davao Occidental has increased rapidly.

“Ang verification na ginawa namin, na-locate namin na nasa San Pablo siya at meron siyang tindahan doon… Marami ang mga naging biktima nito sa Davao,” said Atty. Danilo Daganzo, chief, NBI Laguna District Office.

“Ang sabi pa nga niya sa akin mga P500 million ang involved na nakuha ng grupo. Hindi raw niya alam kung nasaan ang pera,” the official added.

Rigen Marketing exec arrested over alleged pyramiding scam in Davao
It was March 2020 when the NBI Special Task Force in Parañaque arrested the founder of Rigen Marketing Rico John Garcia, who was brought to Tagum City in Davao to face the syndicated estafa case.

Garcia allegedly stole up to P2 billion from the P8 billion that the group got from the victims.

Auditor refused to give a statement regarding the alleged pyramid scam.

In an advisory released by the Securities and Exchange Commision on June 2019, Rigen Marketing is not registered either as a corporation or partnership.

The advisory defines the activities behind the scheme and advises the public not to invest or stop investing in any investment scheme offered by the said company.

Furthermore, SEC ordered the company and its officers or representatives to cease and desist from further engaging in activities of selling or offering sales of securities and investment contracts until the required registration is duly filled and approved by the Commission.

 

 

Edited September 18, 2021 by Gandang Smile

[Mike J]

Another Ponzi scam in the news.

https://www.sunstar.com.ph/article/1907792/Cebu/Local-News/SEC-tags-Cebu-based-beauty-and-cosmetic-firm-a-Ponzi-scheme

A CEBU City-based firm offering beauty, cosmetic, home and personal care has been flagged by the Securities and Exchange Commission (SEC) as an investment scam after it was found to be soliciting investments from the public even without the necessary license and permit.

SCET Colleens Corporation with office address at Unit 2004 Grand Residences, Apitong Street, Cebu City has claimed to have a secondary license, but upon investigation by the SEC Enforcement and Investor Protection Department (EIPD), the document they were using was fake, SEC Cebu extension office officer-in-charge lawyer Alma Marie Estrada-Dalena said quoting the EIPD report.

SCET Colleens offers a number of investment packages and promos ranging from P3,800 to P1.08 million, promising lucrative passive returns of five to eight percent return of investment per month and other bonuses with little or no risk.

“The public is reminded that any offer or promise of ridiculous rates of return will little or no risk is an indication of a possible Ponzi scheme,” the SEC official added.

A Ponzi scheme is when early investors are paid of their investments from the investments of new investors and not out of the companies’ profits similar to the ill-fated Kapa.

Dalena said these entities are likely to close or shut down once they cannot gather enough investments to fund their schemes due to lack of new investors.

The SEC conducted the investigation following reports and inquiries of the public on the legal operations of the company, which also claims to be a multi-level marketing firm.

The SEC further identifies the following personalities as incorporators, namely, Shara Jane Casao Chavez, Kay Anne Cuizon Leyson, Edith Francisse Villegas Tablante, Earn Sta. Rita Saguindel and Artemio Tarona Ponce Jr.

In their website www.beautynailhairsalons.com, Edith Francisse Villegas Tablante, who claims to be its chief finance officer, takes responsibility “upon the issue facing the company.”

In an advisory issued on September 2, the SEC said the names of those involved will also be reported to the Bureau of Internal Revenue so that the appropriate taxes or penalties will be assessed correspondingly.

“May this serve as a fair warning to the public to always exercise extreme caution before making or placing their monies on entities that offer “too good to be true” investment packages similar to SCET Colleens Corporation especially during this pandemic,” the SEC-EIPD said.

Dalena urged the public to always check with SEC.

“You can always visit our website www.sec.gov.ph to check if the company that you wish to invest your money with has a license,” she said, adding “people who engage in investment taking also need to have a secondary license; the Certificate of Incorporation issued by SEC is not enough as it does not authorize investment solicitation and investment-taking without a secondary license from the Commission.“

Moreover, those who act as salesmen, brokers, dealers or agents or convincing people to invest in their scheme including solicitation and recruitment through the internet may likewise face criminal prosecution and face a penalty of a maximum of P5 million or 21 years of imprisonment or both based on Sections 28 and 73 of the Securities Regulation Code.

[graham59]

11 hours ago, Mike J said:

“May this serve as a fair warning to the public to always exercise extreme caution before making or placing their monies on entities that offer “too good to be true” investment packages similar to SCET Colleens Corporation especially during this pandemic,” the SEC-EIPD said.

Dalena urged the public to always check with SEC.

They need to teach (warnings about, and understanding of) this stuff in schools, rather than playing drums and dancing !  

It really is an evil 'business' , involving heartless parasites. ...and rampant in the Philippines ! 

 

 

Edited September 21, 2021 by graham59

[baronapart]

1 hour ago, graham59 said:

They need to teach (warnings about, and understanding of) this stuff in schools, rather than playing drums and dancing !  

It really is an evil 'business' , involving heartless parasites. ...and rampant in the Philippines ! 

 

 

A lot of teachers are probably mid level leaders in the various pyramid schemes/"wealth" opportunities that plague the Philippines. It is a national scourge.

[Jollygoodfellow]

3 hours ago, graham59 said:

They need to teach (warnings about, and understanding of) this stuff in schools, rather than playing drums and dancing !  

What schools? 

Oh, your from times gone by. 

[graham59]

Okay..... when... 

[Jollygoodfellow]

2 hours ago, graham59 said:

Okay..... when... 

You did not know there has been no face to face school for a long time but soon to trial again? Also easier to understand posts when you quote who you are replying too. 

[graham59]

My apols. I don't use the 'quote' when replying directly to a preceding a post.

As for the schools, well yes, I have a 6 year-old son here, plus both elementary and high schools about 200m up the road from my shack, so yes.... pretty familiar with what's going on. 

Again, sorry for any confusion. I am old and a bit slow on the uptake.  

Edited September 22, 2021 by graham59

[Mike J]

21 hours ago, graham59 said:

Again, sorry for any confusion. I am old and a bit slow on the uptake.  

I think most of us here are in that same boat.