Tomas Syquia, head of the SEC’s Compliance and Surveillance Department, said his staff is preparing another criminal complaint against a conduit firm of Multitel, which he refused to identify.
"We’re readying another complaint against one conduit firm and we expect to file more against other conduit firms of Multitel," Syquia said. He added the complaint will be filed within the week while the next complaint is expected to be filed by the third week of January 2003.
Multitel was issued a cease-and-desist order (CDO) since January this year for offering investment contracts without prior registration with the SEC.
As a result of the issuance of the CDO, the management of Multitel set up a new company named Multitel International Holdings Inc. (MIHI), to continue the group’s illegal sale of securities to the public. Most of Multitel’s placements and accounts were transferred to MIHI.
Other companies said to be used by Multitel in soliciting investments from the public and which are covered by the CDO earlier issued by the SEC are Partners in Progress Holdings Inc., Sage Management Corp., CUP Multi-Purpose Cooperative Inc., Multilink Multi-Purpose Cooperative Inc., Oceanic Employees, Bethel Multi-Purpose Cooperative, Goodwill Development Cooperative, and Handog sa Pag-unlad Multi-Purpose Cooperative.
According to the SEC, these conduit firms have interlocking stockholders, directors and officers who are connected in one way or another to the management or operation of Multitel.
The SEC filed before the Makati Prosecutor’s Office last month a criminal complaint against Saturnino and Rosario Baladjay, owners of pseudo-investment firm Multitel. If convicted, Baladjay faces seven to 21 years imprisonment.
This case is apart from the individual estafa cases that hundreds of investors have filed against the Baladjays.
The SEC is encouraging other aggrieved investors of Multitel to come out in the open and file complaints with the regular courts to build an airtight case against the Baladjays.
The Makati Prosecutors’ Office is now conducting a preliminary investigation into the case to determine whether the charges levelled by the SEC against the officers of the Multitel Group have any basis.
The SEC filed the complaint to ensure the criminal prosecution of erring individuals and to send a strong signal to the public that it will not tolerate any fraudulent activity.
The Multitel group’s modus operandi is to offer high interest rates of as much 15 percent a month for a six-month placement of P100,000.
Thousands of investors of Multitel are now in a quandary as to when they can get their money back. The Baladjays have refused to talk to investors personally and have been sending their messages to investors through letters or their agents.
Word of mouth and the payment of instant cash attracted investors to part with their hard-earned money.
The SEC has expressed doubts whether investors of Multitel can still recoup their investments from the company due to the repeated failure by management to pay back investors’ claims and the fact that the firm’s owners can no longer be located.
The SEC estimates 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.