R3DCON is registered as a corporation but both R3DCON and INVESTOR’S CHOICE OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public

Date Posted: 21 May 2020



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Based on the information gathered by the Commission,the entities operating under the names R3DCON PHILIPPINES CORPORATION (R3DCON)and INVESTOR’S CHOICE,operated by RAYMOND C. MABUNGA, GILLANY P. DELA CRUZ, RAFAEL L. BANAL, REYMARK LEGASPI, and DARLTON S. CRUZ, with office address at MA Jaro, Building, Block 55, Lot 7, Golden Mile, Salawag, Dasmariňas, Cavite,4115,are engaged in activities NOT AUTHORIZED by the Commission.As posted online, R3DCON and INVESTOR’S CHOICE offers the following investment packages, to illustrate:
Based on the foregoing, R3DCON PHILIPPINES CORPORATION and INVESTOR’S CHOICEare offeringshares in their so-called co-ownership programsand is enticing the public to invest in their housing project, to wit:a.Co-ownershipof “Browtoeful Premium SPA Studio”located at 3rdfloor Wellness Lane, Vista Mall, Dasmariňas, Cavite,for a minimum investment of Thirty Thousand Pesos (Php 30,000.00) per share,securedbyan Investment Contract,Memorandum of Agreement,and a Point of Sale Agreement;b.Co-ownership of “Monggie Spice”and “G Café Restaurant”in front of De La Salle University, Gate 2, Dasmariňas City, Cavite, for a minimum investment of Twenty-Five Thousand Pesos (Php 25,000.00) per share,secured bya Five (5) year investment contract and a quarterly profit income; c.Co-ownership of “Monggie’sHide Out Restaurant and Bar Lounge”for a minimum investment of Twenty-Five Thousand Pesos (Php 25,000.00) per share; andd.A Minimum investment of One Hundred Thousand PesosforaMass Housing Project in Terra Verde, Carmona, Cavite, and Antel Grand, General Trias, Cavite, with a Fifteen Percent (15%) return withinOne Hundred (100) days secured by Post-dated Checksand a Notary Certificate.Accordingly, R3DCON and INVESTOR’S CHOICE are offering investment opportunities whereby investorsdevote their monies in a common enterprise that R3DCON and INVESTOR’S CHOICEhave established and are led to expect profits primarily through the efforts of latter.Such schemes are analogous to an investment contract as defined under the SecuritiesRegulation Code (SRC). Hence, such securities are required to be registered with the Commission and that the concerned corporation and/or its agents must have appropriate registration and/or license to sell such securities to the public.However, per record of the Commission, only R3DCON is registered as a corporation but both R3DCON PHILIPPINES CORPORATION and INVESTOR’S CHOICEOPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITYto solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC).Ititmust be emphasizedthat acquiring a primary registration with the Commission is not a license or authority to solicit investment from the publicbecause it only grants juridical personality to the corporation but does not authorize it to issue, sell, or offer securities for sale nor to undertake investment activities without obtaining a prior registration and/or secondary license approved by the Commission.Further investigation also suggests that R3DCON PHILIPPINES CORPORATION and INVESTOR’S CHOICE’sMonggie Spiceappears to be connected to WON PROJECTwhich is the subject of an earlier Advisory issued by the Commission.
As such, the publicmust be wary of the schemes that these entities are offering. The publicmust be cautious and prudent in making or placing their monies on such schemesthat offers low risk and high returnsbecause this is an indication. of a possible Ponzi Scheme.Hence, the publicis advised NOT TO INVESTor STOP INVESTINGin any investment scheme being offered by R3DCON PHILIPPINES CORPORATION andINVESTOR’S CHOICE and to STOPdealing with any individuals or group of persons soliciting investments for and on behalf of these entities.The Commission warns all the operators of such unauthorized activities that strict penalties are imposed for violations ofthe Securities Regulation Code, the Revised Corporation Code, and such other rules and regulation it enforces.Also, the Bayanihanto Heal as One Act(Republic Act No. 11469) 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 ofsuch unauthorized entitiesin selling or convincing people to invest in theirinvestment scheme offeredincluding solicitations and recruitment through the internet may likewise be criminally prosecutedand 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 and73 of the SRC. In the same manner,those who invite or recruit others to join or invest in suchventure or offer investment contracts or securities to the public may incurcriminally liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court inthe case of Securities and Exchange Commissionvs. Oudine Santos(G.R. No. 195542, 19 March2014).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.Should you have any information regarding any investmentsolicitation activity by any individualor group of individuals representing R3DCON PHILIPPINES CORPORATION and INVESTOR’S CHOICE, please send your report to the EIPD at the guidance of the public. Pasay City, 21May2020