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List of Ponzi/Pyramiding Scams in the Philippines: Study them for the safety of your money

The gap between the rich and the poor is growing. Have you notice that the rich is getting richer while the poor is getting poorer? To stay out of poverty, many poor people are searching for ways on how to earn huge money in an easy way.

And fraudsters, scoundrels, or scammers take advantage of this opportunity to satisfy the people's greed of money and fool their ignorance.

These scammers are creating different versions of ponzi/pyramiding schemes to fool people to earn huge money in just a short period of time.

The end result? Many people lost their hard-earned money or investments.

We know that a business using a ponzi/pyramiding scheme is fraudulent and illegal in the Philippines. It is unsustainable and will not stay longer.

That's why I compiled a list of of ponzi/pyramiding scams in the Philippines for you to have a better orientation to identify such kind of scams.

In the future, you will not be victimized and you can help your friends and family to avoid such scams.

List of Ponzi/Pyramiding Scams in the Philippines

1.  FrancSwiss

2.  Global Money Unlimited

3.  Franxalier Enterprises

A Philippine company that allegedly engaged in a whitening soap manufacturing business.

The owners and at the same time the officers of the company were Lynn Causapin, 31 and her husband Ichitur, 33. Lynn is the president and Ichitur is the chairman.

Investors are promised with an interest rate of 6.5% monthly. The company also promised to double the investors' money after five months and told them they should also recruit others to invest in the company.

Soon enough, concerned individuals filed complaints to the National Bureau of Investigation (NBI) that this company is operating a pyramiding scheme.

NBI set an entrapment operation and arrested the owners/officers of the company and the alleged recruiters named Rachiele David, Ian Gaviola, Arnold Dumalagan, Mar Reyes. They were jailed and charged with fraud. [source: inquirer.net]

4.  First Quadrant Corporation

This a network marketing (MLM) company in the Philippines which engaged in manufacturing and selling shoes. It is owned by Rhodora Tactacan-Tumpalan and Julie Rose Tactacan Defensor (wife of senator Mike Defensor).

It started to operate in 1997. It gained success and received numerous awards for the first few years.

Membership growth reached up to 800,000.

Later, suspicions and controversies in the company arose. Many people claimed that the company is operating a pyramiding scam.

In 2005, the Department of Trade and Industry (DTI) investigated the company and later charged the company of operating a pyramiding scheme.

5.  Banco Filipino Savings and Mortgage Bank (BF)

This is a Philippine bank that promises interest rates of between 6% to 13.9% to attract depositors which is higher than the 1.8% to 3.3% that other banks offered.

It has been shut down for running a pyramiding or "Ponzi" scheme according to the Bangko Sentral ng Pilipinas (BSP). [source: abs-cbnnews.com]

With this level of interest rates offered by Banco Filipino, I remembered financial adviser Sir Francisco Colayco said in an interview with Mel Tiangco on the Power House tv show of GMA News,

"Yung lending, fixed ang income mo. Savings deposit, pautang sa bangko yan. 1%... Maliit. Bumili ka ng treasury bills ng gobiyerno, 3%, 6%. Yung ang fixed income. Lending investment yan."

"Pag ako nangako sa iyo at ginarantee (guarantee) kita, that means pinapautang mo ako. So ngayong panahon, pag ako nagbigay sa iyo ng more than 6 to 7 percent today, ipalagay natin hanggang 10, niloloko na kita. Per year ha!"

"Yan ang tinuturo ko sa kanila, yung guideline ba. Pag may nag-offer sa iyo na guaranteed more than 10% per year, tumakbo na kayo. Hind niya mapapanindigan yon."

6.  Aman Futures Group Philippines Inc.

More details about this company can be read here. SEC accuses the company's investment a ponzi scheme.

7.  Multitel International Holdings, Inc. (MIHI)

With principal office at Makati City, this company was incorporated in the Securities and Exchange Commission (SEC) on September 3, 2001. Spouses Saturnino and Rosario Baladjay were the masterminds of this company. 

The company is offering and selling securities or investment contracts to the public illegally. Why illegal? Because the company and its sister companies (Everflow, Oneheart and Star) were not registered securities brokers or dealers. And also their securities sold in the public are not registered with the SEC.

The company offered a guaranteed 4% monthly interest for a minimum investment of P10,000 or a "double-your-money" rate in case the investor choose to avail the 18-month lock-in investment scheme. This scheme sent a red flag to the SEC. The company was operating a ponzi scheme.

Due to the company's illegal activities, SEC issued a cease and desist order (CDO) of the company on September 10, 2002.

8.  Who will be the next???

There maybe other companies/businesses in the Philippines operating ponzi/pyramiding scheme which are not listed above.

List of Pyramiding Ponzi Scam

Skepticism is an investor's best defense against Ponzi scheme.

If the returns sounds too good to be true, they probably are.

If you know suspicious business or companies operating ponzi/pyramiding scams, don't hesitate to post them in the comment below.
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