R & T Lifestyle Trends International, Inc.

January 30, 2024 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY Based on the information gathered by the Commission, a number of individuals or group of persons claiming to represent R & T LIFESTYLE TRENDS INTERNATIONAL, INCORPORATED doing business under the name and style of Rota & Tong Crystal World, Rota & Tong Quantum International and Rota Tong de Beaute (RT International Ph) headed by Mr. Daniel Tong , are enticing the public to invest their money in said entity. DETACa A prospective investor in RT International Ph can avail of the jumpstart package in the amount of One Hundred Pesos (Php100.00) or he/she can choose to pay One Thousand Pesos (Php1,000.00) for the Starter Package or Ten Thousand Pesos (Php10,000.00) for the Diamond Package. For the diamond, starter and jumpstart packages, a prospective investor will receive 1 bottle of RT Deer Placenta, 1 piece of quantum pendant or 2 pieces of quantum shield sticker and 1 piece of Obsidian Lucky bracelet or 1,200 pieces of premium e-books respectively. RT International Ph has two ways to earn a direct referral bonus and Uni-level bonus. For diamond, starter and jumpstart member, he/she can earn of 40%, 25% or 20% commission for every direct referral and 5%-26% Uni-level commission from first to fifth level . HEITAD In the instant case, the scheme of R & T LIFESTYLE TRENDS INTERNATIONAL, INCORPORATED has the characteristics of a Pyramid scheme. The Pyramiding scheme being fraudulent and unsustainable, is NOT a registrable security . It involves securities because for payment of a sum of money, often nominal, the investor participates in a recruitment scheme that promises a stream of profits. The scheme that requires recruitment in a two-pronged structure takes the form of a pyramid, one that grows wider at the bottom, and thrives with the supply of new recruits to the scheme. Here, the recruitment fees collected from new recruits are used to pay the recruiting commissions to earlier recruits. Records of the Commission show that while R & T LIFESTYLE TRENDS INTERNATIONAL, INCORPORATED doing business under the name and style of Rota & Tong Crystal World, Rota & Tong Quantum International and Rota Tong de Beaute ( RT International Ph ) is registered with the Commission on 29 July 2021 under SEC Reg. No. 2021070021168-01 as a corporation, it is not authorized to solicit investments from the public . The Commission has not and will never issue a License to Sell Securities to the Public to persons or entities that are engaged in this kind of business. aDSIHc Further, Republic Act No. 11765 or the "Financial Products and Services Consumer Protection Act" (FCPA) also prohibits investment fraud which is defined under the law as any form of deceptive solicitation of investments from the public which includes Ponzi Schemes and such other schemes involving the promise or offer of profits or returns sourced from the investments or contribution made by the investors themselves and the offering or selling of investment schemes to the public without a license or permit from the SEC. The public is advised NOT TO INVEST or STOP INVESTING in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of R & T LIFESTYLE TRENDS INTERNATIONAL, INCORPORATED and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it. The Commission warns those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, uplines, influencers, endorsers, abetters and enablers of R & T LIFESTYLE TRENDS INTERNATIONAL, INCORPORATED in soliciting or convincing people to invest in the investment scheme being offered by the said entity including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 11 of the FCPA and Section 28 of the SRC and for the two offenses, both penalized separately with a maximum fine of Five Million Pesos (Php5,000,000.00) or imprisonment of Twenty-One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014) . Furthermore, the names of all those involved will 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 the operation of the subject entity, please call the Enforcement and Investor Protection Department (EIPD) at telephone number 8818-6047 or email at [emailprotected] or you may visit the Commission's Enforcement and Investor Protection Department (EIPD) located at the 9/F, The SEC Headquarters, 7907 Makati Avenue, Salcedo Village, Brgy. Bel-Air, Makati City.