DOJ summons Pagadian mayor over pyramid scam

MANILA, Philippines - The Department of Justice (DOJ) has summoned Pagadian City Mayor Samuel Co to appear before the investigation into the investment scam involving Aman Futures Group Phils. Inc.

The STAR obtained a copy of the subpoena ordering Co to attend the DOJ hearing on Feb. 7.

Co had been asked to answer allegations that he took part in the Ponzi-type scheme by recruiting investors and receiving funds from them.

“Mayor Co has already been notified as a respondent in the syndicated estafa complaints. The hearing will be held here at the DOJ for his safety,” senior assistant State Prosecutor Edna Valenzuela, head of the panel, said.

The complaints against the mayor and his wife Pricilla Ann were filed in November by at least three investors – businessman Samsodin Ala, fire officer Fabian Tapayan Jr. and Norolhaya Taha, a government employee.

Tapayan alleged in his affidavit that Co personally received investments from the victims. He corroborated an earlier statement of Aman financial manager-turned-witness Ma. Donna Coyme that the mayor also distributed checks to some investors.

Charges were also filed against Co and city treasurer Flornina Gerona by Zaalica Adiong, another investor, who alleged that the mayor issued a permit last July authorizing the operations of Aman.

“For quite sometime Aman conducted its operation without the necessary permit from the mayor’s office of Pagadian City. However, on July 27, 2012 Mayor Samuel Co issued a temporary permit to Aman despite knowing fully well that Aman does not have a secondary license that is necessary for it to conduct its operation, which was collecting cash investments from the public,” Adiong’s complaint read.

“That paved the way for Aman to conduct its operation in Pagadian City with semblance of legality,” it added.

Adiong, who lost P3.2 million to the scam, said Co’s link to Aman became clearer when the mayor “tried to amicably settle” when Aman collapsed.

She said Gerona represented the mayor in collecting investments for Aman. She submitted as proof receipts signed by the city treasurer corresponding to her investments.

The complainant also named as respondent a certain Haide Sepada, Co’s staff member, who works at the mayor’s house in Tiguma.

In his affidavit submitted to the DOJ on Dec. 17, Co admitted that he met with Aman president Fernando Luna and asked for several documents “to legalize Aman’s operation.”

Co said Aman’s owner, Manuel Amalilio, even visited him at city hall in July and briefed him about the investment firm. He said Amalilio submitted a certificate of incorporation from the Securities and Exchange Commission to prove that Aman was a duly registered firm.

“If only to protect the investing public of their considerable investments during the interim of the submission of the required secondary permit, the Permits and Licensing Division recommended the issuance of a temporary permit valid only for 60 days,” Co said.

Co, who also filed a complaint against Aman, said he invested in the company after meeting with Amalilio.

He said he invested P3,266,700 under the account name Bo’s Coffee on Sept. 11, 2012 and received an interest of 58 percent after 17 days. He said he made another investment the following day under the account name Max’s Chicken worth P3,205,500 with a 60-percent interest after 17 days.

Co listed his investments and the corresponding returns in his affidavit, including personal and pooled investments from relatives and friends, totaling P42 million.

He said Aman issued two checks worth P5 million each last October when Aman collapsed.

He said the checks bounced when he tried to cash them in Makati City on Oct. 5, prompting him to file a complaint against Amalilio.

The DOJ earlier filed two syndicated estafa cases against Amalilio before the Pagadian City regional trial court. – With Jigger Jerusalem