The advisory was issued by the SEC after the Makati Regional Trial Court approved the recommendation of Multitel’s appointed receiver Teodoro Eusebio to receive, compile and validate all claims against the Multitel Group.
Investors could either go to the SEC or the old Hall of Justice Building at J.P Rizal, Makati to fill out the claim forms which shall be available starting tomorrow, June 13.
Tomas Syquia, head of the SEC’s Compliance and Enforcement Department, said this was a positive development and considered it a first step towards the recovery of their investments.
Syquia, however, said it remains uncertain whether Multitel investors could get back all their investments.
The Multitel Group has come under fire from securities regulators for offering investment contracts to the public without prior registration with the SEC. Under Sect. 8.1 of the Securities Regulation Code, no security shall be sold or distributed without a registration statement duly filed with and approved by the SEC.
The Multitel Group’s modus operandi was to offer high interest rates of as much 15 percent a month for a six-month placement of P100,000. The company was issued a cease-and-desist order (CDO) January 2002 for selling securities to the public without prior registration with the SEC.
Other companies allegedly used by Multitel in soliciting investments from the public and are covered by the CDO 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.
These conduit firms have interlocking stockholders, directors and officers who are connected in one way or another to the management or operation of Multitel.
Baladjay is now under the custody of the National Bureau of Investigation (NBI) due to the individual estafa cases filed against her by Multitel investors.
Among those that were victimized are government retirees and employees; physicians from St. Lukes Hospital, Mary Chiles Hospital and the Manila Sanitarium; housewives; politicians; actors; and military personnel .
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 counselors. One counselor was said to handle as much as P700 million worth of accounts.
According to the SEC, word of mouth and the payment of instant cash attracted investors to part with their hard-earned money.
In dire economic conditions, many Filipinos cannot help but be lured into schemes that offer ostensibly high returns for a minimum investment of only P10,000.
Investors are promised returns of as much as 16 percent interest a month.
The NBI estimates that the money lost to such investment scams could have reached as much as P120 billion.