Bacolod investment firm founder arrested

By Glazyl Y. Masculino

BACOLOD City – Police called on victims of a mass investment scheme here to file charges against the persons behind it so that they can be arrested.

This, after police officers arrested one of the founders of RGS World Marketing Corp. in an intelligence-driven operation in Barangay Paglaum, Binalbagan, Negros Occidental last Thursday.

Operatives of the Provincial Intelligence Unit (PIU), along with Binalbagan Municipal Police Station served an arrest warrant for syndicated estafa with no bail recommended against Henjie Cuadra, 32.

The arrest warrant was issued by Presiding Judge Maria Lina P. Gonzaga of the Regional Trial Court Branch 42 here, dated Aug. 15, 2022.

Police Lieutenant Colonel Alvimar Flores, team leader of PIU, said Cuadra went into hiding for more than a year until he was monitored in Binalbagan town, where he rented a house.

Flores said that Cuadra has no permanent place to stay, as he would transfer from one place to another.

Flores said the leader and other officials of the investment firm are still at large.

Early this year, the Securities and Exchange Commission (SEC) ordered the investment firm to stop its illegal investment scheme targeting investors in Western Visayas.

In an order dated March 1, 2022, the SEC en banc directed RGS World Marketing Corp. 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.

The commission issued the cease and desist order after investigations by the SEC Enforcement and Investor Protection Department (EIPD), SEC Bacolod Extension Office (BacEO), and SEC Iloilo Extension Office indicated that RGS World has been selling and/or offering compensation plans worth PHP1,000 to PHP20,000, with promised returns ranging from PHP3,500 to PHP80,000.

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

The company also distributed products such as soap, liniment oils, rice, eggs, and other poultry products, to disguise its investment scheme as a legitimate distribution business.

RGS World is a duly registered corporation with the commission. However, it has never secured a secondary license from the commission as an issuer of securities or broker-dealer nor registered any securities for public offering pursuant to the SRC.

Meanwhile, Police Major Ellendie Rebusquillo, Binalbagan town police chief, said that victims did not go to the police station yesterday to face Cuadra.

He, however, said that some persons, who claimed to be victims of the investment scheme from Iloilo, called the police station to confirm Cuadra’s arrest.

Rebusquillo said they are just waiting for a court order so that they can surrender Cuadra to the court.