An SEC official, who requested anonymity, said chances of Multitel investors of getting their money back appear bleak because of the continued delay in the release of funds. "They have been making false promises and kept changing the schedule for the return of investments. This only goes to show that something is wrong and they can’t fix it," the SEC official said.
The SEC official estimated that the Multitel group has collected between P20 billion and P25 billion from various individuals all over the country. The group reportedly employs about 600 agents or what they term as counselors. One counselor was said to handle as much as P700-million worth of accounts.
Owners of Multitel – Rosario and Saturnino Baladjay – are now in hiding after failing to cover promised investments to investors. They are reportedly staying somewhere in Bataan or Batangas.
The SEC official cited the letter of Multitel president Rose Baladjay to investors dated Oct. 29 as proof that the company is in dire financial straits and can no longer meet promised payments to investors.
In the letter, Baladjay urged investors to make additional investments and guaranteed that 100 percent of the principal investments plus interest will be returned.
"For those who can’t wait, you can place another transaction so that we can apply offsetting, just for the time being. I promise that this will be the first and the last time you will experience delays," Baladjay said.
The SEC official said this was in defiance of the cease-and-desist order issued by the corporate watchdog against Multitel preventing it from continuing to solicit investments from the public.
"They continue to solicit investments from the public because they have no more money to answer for all claims of investors," the SEC official said.
Baladjay said investors will have to wait for at least three or six more months before they can get their principal investments and other promised payments back.
"For those who believe in me, I guarantee that there will be no regrets. Rest assured that 100 percent of your investment will be returned. I promise just give us enough time. We are doing our best to serve you better. We’ll prove that this business is for a lifetime.
She said the delay in the payment of interests and principal investments to investors was due to the difficulties experienced by its mother company abroad in bringing back the money to the Philippines.
Baladjay said Multitel would also be having a new name sometime in January or March next year to reflect its new thrusts. "Our business will be worldwide," she said.
The SEC, meanwhile, will file with the Department of Justice this week a criminal complaint against the owners and officers of Multitel to prevent them from further defrauding the public and to hold them accountable for the misrepresentation made to thousands of investors.
The Multitel Group, including Multitel International Holdings Inc. and their conduits, enticed the public to invest through the promise of high interest rates. It guaranteed a monthly interest of as much as 15 percent interest for a P100,000 minimum investment in three to six months.
The SEC’s Compliance and Enforcement Department has been receiving complaints from various individuals claiming they have been victimized by Multitel and had been issued bouncing checks.
Earlier reports said over 500 investors had already filed individual complaints with the SEC against Multitel. Investors include a group of doctors and physicians from St. Luke’s Hospital, Manila Sanitarium and Jose Reyes Memorial Medical Center.
Syquia said the SEC has already asked the Bureau of Immigration to issue a hold-departure order against officers of Multitel.
Multitel was issued a CDO last January for offering investment contracts without prior registration with the SEC.
The SEC also issued a CDO against Multitel International Holdings Inc. (MIHI), another company being used by Multitel to discontinue its illegal sale of securities to the public. Most of Multitel’s placements and accounts were transferred to MIHI, which is also owned by the Baladjay couple.