The Securities and Exchange Commission is conducting an awareness campaign to caution the public against the alarming incidents of pyramiding and ponzi schemes in the Philippines.

SEC head office director Jose Aquino said yesterday that he considers these operations in the Philippines quite alarming because such scams that have originated in other countries are also operating internationally.

Due to limited resources, he said, they are partnering with people who can help them disseminate the information to the public through education campaign.

Aquino said they have been receiving many complaints but the victims are not willing to cooperate because some are ashamed of having been deceived, during an investor protection forum conducted by SEC-Iloilo Extension Office in Bacolod City yesterday.

“We have to build cases, and to be able to build these cases, we have to have evidences. So we always ask the victims to execute affidavits and to provide us a copy of their program. But in many cases they refuse to cooperate,” he said.

Aquino said the usual victims are the A,B, and C sectors of society, government employees, retirees, private sector, or anyone who has money to invest.

The most popular investment scams operating in the country are the pyramiding, ponzi scheme, and boiler room operations, which have found their way to the internet through websites, emails, and even on social media, he said.

They also issue advisories warning the public of scammers operating in a certain locality and advise people to come to them if they have complaints or any evidences, Aquino said.

In the case of the Ponzi scheme, the operation offer very high interest rates but only provide the investor statements of account. The public should check if these entities are registered with the SEC, he said.

“Banks can only offer so much unless you are a valued client. It depends on the person because they say a scammer will not be successful unless you try to cooperate,” he added.

Aquino encouraged victims to report these scams to the SEC so proper charges can be filed for violation of the Securities Regulation Code authored by the late Senator Raul Roco, against the perpetrators

He said the best way is to come out openly and bring whatever documents they have so the SEC can run after the fraudster and help others from also becoming victims.

SEC division head Lalaine Monserate also informed the participants how to determine a pyramid scheme and encouraged victims to file estafa charges against the scammers.*CGS

back to top