DUMAGUETE CITY, Philippines – The Negros Oriental provincial office of the Department of Trade and Industry is currently investigating at least three to four financial and/or investment schemes in the capital city and other parts of the province that are believed to be scams.
The provincial DTI however refused to name these investment operations to avoid compromising the investigation.
DTI provincial chief Javier Fortunato, Jr. has issued a warning to the public even as the National Bureau of Investigation (NBI) and other law enforcement agencies are already digging deeper into these “Ponzi schemes” that could be fraudulent and may have already victimized locales.
According to DTI’s Angeline Gonzalez, these perceived scams involve luring the public to put their money in their operations with promises of huge returns of investment.
One indication of a scam or a Ponzi or pyramiding scheme is that it does not sell a specific product and only involves an investor shelling out money in exchange for high returns of their investment after a certain period, Gonzalez said.
The DTI has unraveled what seem to be some Ponzi or pyramiding schemes existing in Dumaguete and Negros Oriental, with some notable personalities even involved, either as an investor or as part of the perceived fraudulent financial investment program, she said.
Some of these schemes are even registered with the Securities and Exchange Commission (SEC) as a legitimate investment vehicle or strategy, said Gonzalez.
Pyramiding could be legitimate in instances where a product is being sold to an investor who gets a share of the commission determined by the number of recruits in the down line. A person who invests in such will usually get their investment returns the first few times until the system collapses and those promoting it will disappear for a number of reasons.
The common fraudulent promotional methods include “double your money”, “easy money” and “quick money” with cash as capital that would earn interests through the recruitment of more investors.
The DTI has advised the public to be cautious about investing their money in these financial investment vehicles by asking for documents and proof such as receipts as well as verifying with the SEC if these are registered, particularly if an investment product is being offered.
For verification, the public can also contact the nearest DTI office or call hotline numbers for both the SEC and the DTI. (FREEMAN)