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With the
interest rates on bank deposits tumbling down to new
lows, there has been an upsurge in investment scams that
purportedly offer higher rates, apparently to entice
investors to part with their money.
The
scams have been fine-tuned to effectively go over the
initial resistance of investors even with the continuous
warning from the Securities and Exchange Commission
(SEC) for the public to be wary of offers of fantastic
rates for money placements.
The
investment scams, even coming from supposedly
SEC-registered companies, should be thoroughly
scrutinized by the investing public who get wooed by
such offers of high rates. Unfortunately, the SEC’s
warning continues to come unheeded as can be gleaned
from emerging reports of another pyramiding scheme
uncovered—unfortunately late in the game—by investors
who fell for the very high rates of return initially
offered for their money.
Reports
filtering out from a noted hospital in a Metro Manila
area show that a couple has apparently victimized their
colleagues in what is emerging as another Ponzi scheme.
Conservative estimates place the investments that were
gathered from the unsuspecting doctors and other
hospital personnel at P700 million. One doctor-victim,
we learned, has already sought for the garnishment of
the couple’s assets after filing a case in the courts
for the recovery of upward of P10 million in
investments.
And to
think that the SEC has not been remiss in its timely
updates on the resurgence of investment scams as it has
linked up even with an Australian government agency that
specializes in running after boiler room operators or
pyramid operations.
In fact,
a cursory look at the SEC’s website would immediately
alert the public to the do’s and don’ts insofar as
investments are concerned. Aside from this, the
commission comes up with press announcements reminding
the public against being sweet-talked into parting with
their money in return for abnormally high interest
rates.
We
understand that the couple-doctor initially paid for the
promised fantastic rates on the investments of their
colleagues and friends. As the buzz on the high rates
reached other doctors and hospital personnel, the
couple-doctor got more and more investments and the
pyramid went higher and higher. Well, after less than a
year, the couple-doctor can no longer give the promised
rate of return with checks issued getting rubbery and
the investors getting jittery.
But as
the couple-doctor were part of the hospital group, the
initial explanations for the non-payment of the
interest-cum-principal was accepted though grudgingly by
the investors. Until the garnishment case, when it hits
the fan, results in the investors-victims rushing for
the recovery of their investments and doing
one-upmanship as the base of the pyramid comes tumbling
down. By then, the investors would be looking at the
loss of their principals, some rolled over together with
the high interest.
Now, the
investors should take heed from the SEC’s own admonition
on the proliferation of investment scams. As per the
commission’s warning, investors should not “be tricked “
into investing in securities, bonds, commercial papers
and other investment instruments unless the securities
they sell are registered with the commission. One
telltale sign though is the offer of fantastic rates,
which could not be borne by the realities of running a
business.
SEC’s
warning also point out that registration of a company
with the commission does not accord it with the
authority to offer securities, bonds and other
investment instruments to the public. Only investment
houses and financing companies with quasi-banking
license are allowed to sell these securities, which
should, however, be registered first. The investing
public, including the overseas workers, will have to
take this to heart lest they become victims like the
doctors in a Metro Manila hospital.
E-mail: hugagni@yahoo.com |
