MANILA -- The National Bureau of Investigation (NBI) on Wednesday filed criminal charges against firms that had set up businesses a stone's throw away from the offices of the Kapa-Community Ministry, which is also engaged in unauthorized "investment" operations.
Charges of syndicated estafa and violation of the Securities Regulation Code were filed by the NBI against 39 officials and individuals connected with the Alabel Maasim Mining Corp. (ALMAMICO) and the Alabel-Maasim Credit Cooperative (ALAMCCO) based in Sarangani province, General Santos City, Koronadal City and Panabo City.
Among those named in the NBI were the firm's chairperson, religious pastor Jerson Alba Cagang, 36, vice-chairperson Conrado Mancao, 60, and directors Albert Cagang, Juanito Castillo, Benigno Cereño and Tirso Cereño.
In its letter to Prosecutor General Benedicto Malcontento, the NBI said the two firms were discovered as "emerging investment entities" operating alongside with Kapa.
"The modus operandi of Almamico/Alamcco is basically solicitation of money/investment from the public with a promise of 35 percent return / interest per month. Almamico/Alamcco recruits its victims in the guise of a credit cooperative and once a person becomes a member, one should make a deposit in the guise of contribution which would, in turn, earn interest or profit in such a short period of time," the NBI said in its complaint.
"This is a pyramiding scam considering that in common and ordinary experiences in life, no business has ever survived and will last in this kind of business set up" the NBI said, adding that "the victims here are made to believe that the interest /return that they get came from a legitimate source without knowing that the same really came from their co-investors".
Last June, the Securities and Exchanges Commission issued a cease and desist order directing ALMAMICO and ALAMCCO to stop “engaging in activities of selling and/or offering for sale of securities in the form of investment contracts”.
While ALMAMICO registered with the Cooperative Development Authority and ALAMCCO registered as a stock corporation, the companies lacked the necessary license to offer and sell investment contracts.
Securities may only be offered or sold to the public by an entity registered and approved by the SEC, under the Securities Regulation Code. (PNA)
