A party-list lawmaker has sought a congressional probe in aid of legislation on the sudden proliferation of investment scams in the country.
In filing House Resolution 2256, Rep. Christopher Co of Ako-Bicol party-list, said thousands of Filipinos have been enticed and fooled into entering these dubious deals, and are seemingly left vulnerable to these scams that continue to successfully form and prey upon the public despite the numerous laws being enforced by the Securities and Exchange Commission.
Co said that instead of preventing the occurrence of such illegal acts, the government merely responds to the resulting situation which amounts to the loss of livelihood and life savings of the thousands of victims left financially and emotionally crippled by these unscrupulous investment schemes.
Co, a member of the House majority bloc, said that numerous complaints have been filed against several companies engaged in unauthorized investment schemes such as multi-level networking, sale of goods and even outright swindle.
“Last July 22, 2015, reports surfaced revealing a P3-billion investment scam involving a multi-level networking firm called One Dream Global Marketing Inc. or One Dream,” he said.
He said that One Dream promised that under a “pay-in” scheme, an investor pays P888, which is equivalent to a pen slot, which shall result in an “exit” or “pay-out: of P1,300 after four days.
“This Batangas-based firm, which began its operations last May, allegedly victimized at least 20,000 people when One Dream’s president and chief executive officer Arnel Gacer, and vice president Jobelle de Guzman closed the corporation and took away about P12.7 million worth of investments from a group of 300 investors,” Co said.
The party-list solon said that One Dream was registered with SEC as a firm involved in buying and selling various goods, but had no permit to engage in selling and marketing investment products.
Co said that weeks before the incident with One Dream, another company named Freedom Life Advanced Global Prosperity Marketing Inc. otherwise known as Flag Prosperity Marketing Inc. is being probed for alleged unauthorized selling of investments.
“FLAG, which is based in Calamba City, was reportedly engaged in recruiting individuals in one to 15 slots, wherein one slot amounts to P1,500 each and has a promised return of P2,2oo and also has One Dream’s president Arnel Gacer, as one of its incorporators,” he said.
The resolution noted that companies that are engaged in unauthorized sale of investments from the public are Success200 International Marketing Corp., Goldextreme Trading Co., One Lightning Corp., and Emgoldex Philippines.
Other companies suspected of unauthorized solicitation of investments from the public include Bagong Lahing Filipino Development Foundation Inc., Hyper Program Int’l Direct Sales and Trading Corp. (HPI Direct Sales and Trading Corp.), 79 Galore Online Marketing and Satarah Wellness Marketing.
In his resolution, the Ako-Bicol party-list group asked the House committees on trade and industry and on Banks and financial intermediaries to jointly conduct the probe on these investment scams.
He said that the committee of trade and industry has jurisdiction over issues that concern domestic and has the mandate to inquire into investments bought and offered to the public to ensure consumer protection.
On the other hand, he said that the committee on banks and financial intermediaries has jurisdiction over issues relating to securities and securities exchange and has the mandate to ensure the protection of investments in the country.
“Considering the alarming rise in companies that are either unregistered or registered but still not authorized by the SEC to offer or sell investments to the public, it has become the duty of both committees to investigate the matter and determine liability or points of improvements for the SEC and other appropriate agencies involved in precluding scams,” Co said.
He said that both committees must also evaluate whether or not existing laws are still adequate to protect the public against such investment scams and if possible, craft remedial legislation that will ensure the prevention of investment scams.