SEC found various marketing teams of Raisedherbs Zion Marketing to be engaged in Pyramiding – a form of securities fraud.
Date Posted: 30 April 2020
PYRAMIDING SCAMS ON FACEBOOK
PYRAMIDING, being fraudulent and unsustainable, is NOT a registrable security. The Securities and Exchange Commission has not and will never issue a License to Sell Securities to the Publicto persons or entities that are engaged in this business. This scam involves the recruitment of people in a two-pronged structurethat takes the formof a pyramid, one that grows wider at the bottom, and thrives with the supply of new recruits to the scheme. Unfortunately, once the recruitmentdeclines, so does the money.This is the scheme employedby various marketing teamsof the products of RAISEDHERBS ZION MARKETING(“RZM”)on Facebook.The teams recruit investorswho payat least Php1,500.00 for a few productsof RZM and consequentlyearn the right to participate in a schemethat promises a stream of profits by recruitingothers to the groups.As of 29 April 2020, RAISEDHERBS ZION MARKETING does NOTappear in the database of the Commission as a registered corporation, partnership or a grantee of a License to Sell Securities to the Public.As advertised,thereare4 ways of earningfrom joining the marketing teams of RZM:1.Direct Selling–30%-60% discount2.Sponsor Bonus–Php 120.00/person3.Matching Bonus–500/pair in a Binary structure, maximum of 4500 for 3 accounts. 1st-48thPhp500/pair ofrecruits in the left and right leg of the binary49thand above-Php 150/pair 4.Unilevel Commission/Override Commission–8%of the sales from your direct-up to the 10th.Dubiously, the investor-recruits are encouragedto open three (3) accounts in order to earn maximum profitsinstead of promoting the sale and use of the products as any legitimateMLM or direct selling company do. Further, published pay-outs on Facebook would prove that RZM marketing teams focus on recruitment. In one post, familymembers hold multiple accountsin order to earn at various levels of a pyramid from a single recruit to the team.
In view thereof, the PUBLIC IS ADVISED NOT TO INVESTin any of the RZM teams on Facebook as follows: 1.RZM2.RZM RaisedherbsZion Marketing –Administrator Dani Gabriel, et al.3.Raisedherbs Zion Marketing-RZM –Administrator Jun Callejo4.RZM The Best to Start5.Raisedherbs Zion6.Raisedherbs Zion Davao7.Raisedherbs Zenith Marketing8.Raisedherbs Zion Marketing –Team JBFurther, As a warning to unscrupulous individuals or entities that may take advantage of our current crisis, they are informed that aside from the strict penalties imposed by the Commission for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation it enforces, the Bayanihan to Heal as One Act(Republic Act No. 11469) also punishes those participating in cyber incidents that make use or take advantage of the current crisis situation to prey on the public through scams, phishing, fraudulent emails, or other similar acts.In addition, those who act as salesmen, brokers, dealers or agents in selling or convincing people to invest in their investment scheme including solicitations and recruitment through the internet may likewise be criminally prosecuted and penalized with a maximum fine of Five Million pesos (P5,000,000.00) or a penalty of Twenty-one (21) years of imprisonment or both pursuant to Sections 28 and 73 of the SRC. In the same manner, those who invite or recruit others to join or invest in such venture may incur criminally liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of SEC vs. Oudine Santos(G.R. No. 195542, 19 March 2014).The names of all those involved will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.If you have been victimized by this scam, please e-mail us immediately at email@example.com report and to provide details of your transactions with any of the above marketing teams.April 30, 2020
PYRAMIDING SCAMS ON FACEBOOK