Rigen execs convicted of syndicated estafa
DAVAO CITY: Two top officials of Rigen Wellness Product Marketing have been convicted to life in prison for syndicated estafa and engaging in unauthorized investment-taking activities.
The Regional Trial Court Branch 2 in Tagum City, Davao del Norte sentenced Rico John Colorines Garcia and King Paul Bryan, chief executive officer and auditor of Rigen Marketing, respectively, for the crime of syndicated estafa in two criminal cases dated April 11 and May 2.
In a statement released by the Securities and Exchange Commission (SEC)-Davao Extension Office on Monday, May 29, Garcia and Bryan were sentenced to life imprisonment in both cases, alongside payment of actual damages totaling P2.01 million and moral damages amounting to P120,000, plus an interest of 6 percent per year.
Their co-accused Rosenda Colorines Garcia, Christine Palijo, Romen Samuel Wabina and Jemeilyn Tacay remain at large.
The cases stemmed from the complaints of two individuals who were enticed to invest in Rigen Marketing after it allegedly promised income returns of up to 400 percent within a span of 30 days. Rigen Marketing claimed that profits were generated from investments in cryptocurrency and foreign exchange trading.
“It has been held that where one states that the future profits or income of an enterprise shall be a certain sum, but he actually knows there will be none, or that they will be less than he represents, the statements constitute an actionable fraud where the hearer believes him and relies on the statement to his injury,” the decision read.
The court said Rigen Marketing employed fraud when Garcia, Bryan and its officers pretended to have the authority to solicit investments from the general public.
“The promise of a high-yielding venture was unsustainable, as Rigen Marketing was not really engaged in any legitimate business,” the decision read.
Section 1 of Presidential Decree 1689 provides an additional punishment of life imprisonment for the crime of estafa, as provided in Articles 315 to 316 of the Revised Penal Code (RPC) if committed by a syndicate consisting of five or more individuals if the results to defraud in the misappropriation of money solicited by corporations/associations from the general public.
“The totality of the testimonies of the witnesses, documentary evidence on record, and findings of the SEC all point to both accused Garcia and [Auditor] as the perpetrators of a grand scheme to defraud investors of their investments in their company, Rigen Marketing,” the court ruled.
As early as May 24, 2019, the SEC already warned the public against investing in Rigen Marketing through an advisory posted on its website.
A cease and desist order was issued on June 11, 2019, directing the group to stop engaging in investment solicitation activities unless it secures the necessary licenses from the commission.
The SEC, meanwhile, is currently prosecuting 375 individuals in 56 cases for violations of Republic Act 8799 or the “Securities Regulation Code,” and three cases for violations of the RPC.