The Philippine Securities and Exchange Commission (SEC) reported yesterday that the leader of Tagum City-based Rigen Wellness Product Marketing was sentenced to life in prison for conspiracy to defraud.

The Second Division of the Tagum City District Court of First Instance convicted Rico John Colorines Garcia and King Paul Bryan Auditor of conspiracy to defraud in two criminal cases on April 11 and May 2. They are, respectively, the CEO and auditor of Rigen Marketing.

Garcia and Auditor were sentenced to life in prison in both cases, while paying a total of 2 million Philippine pesos (about 250,000 yuan) in actual damages and 120,000 Philippine pesos (about 15,000 yuan) in moral damages, with an annual interest rate of 6 percent.

"Witness testimony, documentary evidence on the record, and the SEC's findings all indicate that both charged Garcia and Auditor were the perpetrators of a significant scheme to defraud investors into investing in their companies," the court said.

The cases stem from complaints by two individuals who were lured into investing in Rigen Marketing, which allegedly promised a return of up to 400% of their income within 30 days.

The company claims profits from investments in cryptocurrencies and forex trading.

The court also stated that Rigen Marketing engaged in fraudulent conduct when Garcia, Auditor and their officials pretended to have the authority to solicit investment from the public when in fact they did not.

"The high-yield enterprise he promised was not sustainable because Rigen Marketing was not really engaged in any legitimate business," the judgment read.

Back in March 2019, the SEC warned the public not to invest in Rigen Marketing through an announcement posted on its website.

The SEC subsequently issued a cease and desist order on June 11, 2019, directing the group to cease engaging in investment solicitation activities unless it obtained the necessary permits from them.

Their co-defendants, Rosenda Colorines Garcia, Christine Palijo, Romen Samuel Wabina and Jemeilyn Tacay, remain at large.