Beware of gift-bearers

In the wake of the collapse of new investment schemes, one after another, the Securities and Exchange Commission (SEC) finds its hands full dealing with an irate group of investors who were left holding an empty bag.  Over the years, this scenario has often been repeated, and while in some cases, the perpetrators get caught in time and locked up before they can do further harm, most get away to sun-kissed shores to enjoy their OPM (other people’s money). Even when the perpetrators get caught, however, one cannot hope to recover his investments, and not even the threat of lifetime incarceration can produce your hard-earned money.

These sweet-talking thugs come to you bearing great gifts of promise. They talk about risk-free investments at mind-boggling rates of three percent to six percent a day! The wilier ones cite more credible figures of  five to 15 percent a month, though even at this rate one should sit up and think 10 times, then junk the son of a gun waiting to snare you!

On the TV show Business and Leisure I had a chance to interview Atty. Hubert B. Guevarra, Director of the Compliance and Enforcement Department of the SEC who talked at length about the “Ponzi” scheme. He deplored the naiveté, actually the fool hardiness of those investors who “surrendered” their hard-earned savings (some even invested their retirement money after having been guaranteed returns that would roughly be equivalent to their monthly salaries before they opted for retirement) to these sharks. These unlicensed solicitors work for entities that are not SEC-registered, precisely because they do not want to be within the regulatory ambit of the Securities and Exchange Commission.

The “Ponzi” schemes are mostly Internet-based. The solicitors “guarantee” incredulous returns for your investments which they claim are risk-free. For starters, Atty. Guevarra warns that “most of these solicitors to not have the license to solicit, and the companies they are soliciting investments for with incredibly high returns are usually not registered with SEC as well.” The SEC’s Compliance and Enforcement head adds in our one-on-one interview on the TV show’s Biz Watch segemnt, “And some of these companies include Francswiss, Private Forex Trade Inc., Universal Forex System, Swiss Cash and Global America, which have not been authorized by SEC to solicit investments. These, in fact, are not registered entities. Under the SEC Regulation code, section 8, all investment contracts should be registered with the SEC. Some entities go further — they display fake SEC registration in their website. It should be easy, though, to verify this directly at the SEC offices because these documents are public.”

For the benefit of the investing public, Atty. Guevarra’s department is issuing this warning to unsuspecting investors, Beware, and watch out for these red flags:

Incredulous returns on your investments.  While commercial banks offer only about 3.75 percent p.a. on your bank placements, and the Treasury Bills offer between four to five percent annually, these entities promise up to six percent a day or 15 percent a month.

The owners/directors/officers of these entities are largely unknown, so who are you going to run after when you want your money back?

When they convince you to invest, the condition they give you is that you can’t touch your money for 60 to 90 days. This is called a lock-up period which in normal schemes should not exist.  You should be able to cash in your investments at any time, albeit for less than the contracted rate. It’s your money, so why should you be locked out of it?

The orientation given by these so-called solicitors or agents are usually done informally and held in restaurants or internet cafes and not in their offices. When the investor wants to recoup his money, their only recourse is the internet, no some office they can physically storm if they do not get any response.

There is no paper trail for bogus investment companies. Under ordinary circumstances, one is issued documents as evidence of one’s participation in the business venture. This is not the case for these fly-by-night entities.

Some of these entities now solicit investments only in foreign currencies, usually in US dollars.

When you do see any one of these red flags, Atty. Guevarra’s advice is to check out the entity with the SEC. The Department of Compliance and Enforcement of the Securities and Exchange Commission which he heads is at the 5th floor of SEC Bldg. along EDSA. If you feel that you have already been victimized, first thing to do is try to recoup your investments through your upline first, if you can contact him. Usually, when these solicitors have already received their commissions from their downlines, they are increasingly difficult to track. Failing this, contact Atty. Guevarra’s department. They promise to assist all those who come a-calling, but they would also like to get full cooperation from these victims so they can identify these solicitors and the people behind the scam. They are also working hand-in-hand with with Anti-Money Laundering Council and the Bangko Sentral ng Pilipinas to prevent further damage to the investing public.

Players Den

Finally, Texas Hold’em aficionados now have a home. 

The Players Den formally opened last Friday, July 27.  Located at A. Mabini st., Players Den welcomed players and friends with cocktails and a sampling of the great Italian cuisine they serve at their bar and restaurant located at the first floor.

The bar’s youthful ambience is a great come-on.  Managed by the energetic and youthful Argee Gamboa, the Player’s Den has an informal air, a friendly atmosphere where one can meet new friends, enjoy a raucous laugh while sharing drinks and enjoying their different pastas and pizzas. I particularly liked the rolled pizza, their chef’s own innovation.

The second and third floors are the gaming areas. Perish the old traditional idea of having serious players here. The Players Den’s gaming areas have an easy, friendly ambiance, with a mix of young and not-so-young players whose common denominator is their love for Texas Hold’em. On opening night, there was a fun-filled group, three big tables of Texas Hold’em lovers who liked to banter and enjoyed their games, while at the same time enjoying platefuls of hamburgers and pastas.

The Players’ Den operates under the auspices of the Philippine Poker Tour headed by its chairman and president, Rey D. Gamboa and sanctioned by PAGCOR and is fully regulated by the country’s top gaming authority.

The nightly non-wager Hold ‘Em tournaments at the Player’s Den hope to further sharpen the skills of the Pinoys in this ultimate mind game where we can eventually excel worldwide.

Mabuhay!!! Be proud to be a Filipino.

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