Davao City anti-scam unit lists companies allegedly involved in investment scams
Subscribe Now February 23, 2020 at 09:25pm
These high yield investment schemes are considered those with securities as they solicit or require persons to make investments of money in a common enterprise with the expectation of profits to be derived primarily from the efforts of others.
In a letter addressed to the office of Mayor Sara Duterte last February 10, ASU head Simplicio said there was a total of 2,496 reported cases of fraud already.
“Various investment schemes in Davao City and some of its adjacent cities in Mindanao found to be fraudulent by this office in its initial case build-up,” noting that they have referred the matter to the Criminal Investigation and Detection Group (CIDG) Region 11, Investigation Division and Management Branch (IDMB), and to the National Bureau of Investigation (NBI) Region 11.
Sagarino reported to the mayor that there were 1,761 reported cases of fraud recorded in 2016, 24 cases in 2017, 33 in 2018; 576 in 2019, and 62 reported as of January this year.
Upon report of the fraud, the Davao City Anti-Scam Unit immediately conducted surveillance operations on individuals and groups that were complained to identify and confirm the very nature of their modus operandi.
The ASU head said that, once proof of fraud is established, his team coordinates with the investigating agencies for the proper filing of criminal cases in court.
According to ASU the violations of these investment schemes comes from the fact that they have not registered these schemes with the Security and Exchange Commission (SEC) or do not have secondary licenses authorizing them to deal in regulated activities in issuing, brokering, or dealing in these high-yield investment schemes.
These companies have not shown that the schemes were ‘Exempt Securities’, and could not provide proof or SEC confirmation that the issuance, brokering, or dealing of these schemes were categorized as ‘Exempt Transactions.”
Exempt securities are those financial instruments generally backed by the government that do not need to be registered with the SEC, with tax-exempt status.
Exempt transactions, on the other hand, are those transactions where business no longer needs to file registrations with any regulatory bodies as long as there is “relatively minor number of securities involved”.
The ASU pointed out that “they seriously misrepresent that they can solicit investments from the public, knowing that they do not have requisite registration or secondary license, which acts are indicative of their intent to deceive the public on what they can do or is doing to damage and prejudice of the investing public.”
These companies were said to have engaged in “utra-vires act of corporation” as the solicitation of investment money from the public is not one of the purposes for which the corporation was formed.
Moreover, the SEC itself has issued advisories finding these high-yield investment schemes to have been engaged or is about to engage in fraudulent transactions, and some was also issued the corresponding Cease and Desist Order (CDO).
Among the high-yield investment schemes tagged by the ASU proliferating in Davao City and in other areas in Mindanao include: KAPA Community Ministry International; Rigen Marketing; A21 Marketing; Dreamers; Dreamzion; Diamond Essential Products; Eden Marketing; King Elise Marketing/Network Solutions; Casino Financing; Crowd Royal; Dragon One; Genesis Company; Gold Skin and Health International; JACAMA Sales and Marketing; Jogle Innovative Marketing; LSM Wellness Product Trading
Davao Ponciano Cooperative; Credit Multi-Purpose Cooperative (CPMC); Shoppers Circle; PEDVEL/PEDCO; Global Intergold (Online); ENCO; Ever Arm Marketing; Gambaro Trading & Consultancy; Jogle Innovative Marketing; JY Marketing; LUCKY 9; Majestic Point Marketing; Nermie Health and Beauty Products Trading; Omega Trading; Premier Oil PLC/JMACl Crowd Funding; and Skinline.
The list further extends to include groups such as Snapcash; Sovereign Success Business Company; Tagum Pay; Triple 8 Trading; United Program; Victorious Mortuary & Allied Services; GILDASH Investment; Global Fusion Network; and High-Class Trading.
Sagarino has urged the public not to engage in any transactions with these investment schemes proliferating around.
“If there are any investment schemes that you suspect to be illegally soliciting around, report it immediately to authorities,” he said.
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