MAY 16, 2016

NR # 4202

Solon seeks probe on investment scams in the country

A lawmaker is urging Congress to conduct an investigation, in aid of legislation, on
the sudden proliferation of investment scams in the country.
Rep. Rodel M. Batocabe (Party-list, Ako Bicol) said thousands of Filipinos have
been enticed and fooled into entering these dubious deals, and are seemingly left
vulnerable to these scams that continue to successfully form and prey upon the public
despite the numerous laws being implemented by the Securities and Exchange
Commission (SEC).
He explained in House Resolution 2256 that instead of preventing the occurrence of
such illegal acts, the government merely responds to the resulting situation which amount
to the loss of livelihood and life savings of the thousands of victims left financially and
emotionally crippled by these unscrupulous investment schemes.
Batocabe said that based on newspaper reports, numerous complaints have been
filed against several companies engaged in unauthorized sale of investments.
Last July 22, 2015, reports surfaced revealing a P3-billion investment scam
involving a multi-level networking firm called One Dream Global Marketing Inc. or One
Dream, he said.
He said that One Dream promised that under a pay-in scheme, an investor pays
P888, which is equivalent to a pen slot, which shall result in an exit or pay-out: of
P1,300 after four days.
This Batangas-based firm, which began its operations last May, allegedly
victimized at least 20,000 people when One Dreams president and chief executive officer
Arnel Gacer, and vice president Jobelle de Guzman closed the corporation and took away
about P12.7 million worth of investments from a group of 300 investors, Batocabe said.
The party-list solon said that One Dream was registered with SEC as a firm
involved in buying and selling various goods, but had no permit to engage in selling and
marketing investment products.
Batocabe further said that weeks before the incident with One Dream, another
company named Freedom Life Advanced Global Prosperity Marketing Inc. otherwise
known as Flag Prosperity Marketing Inc. (FLAG) is being probed for alleged
unauthorized selling of investments.

FLAG, which is based in Calamba City, was reportedly engaged in recruiting

individuals in 1 to 15 slots, wherein one slot amounts to P1,500 each and has a promised
return of P2,2oo and also has One Dreams President Arnel Gacer, as one of its
incorporators, he said.
Batocabe said companies that are engaged in unauthorized sale of investments from
the public are Success200 International Marketing Corporation, Goldextreme Trading Co.,
One Lightning Corporation, and Emgoldex Philippines.
Other companies suspected of unauthorized solicitation of investments from the
public include Bagong Lahing Filipino Development Foundation Inc., Hyper Program
Intl Direct Sales and Trading Corp. (HPI Direct Sales and Trading Corp.), 79 Galore
Online Marketing and Satarah Wellness Marketing.
In his resolution, Batocabe directed the House Committees on Trade and Industry
and on Banks and Financial Intermediaries to jointly conduct the probe on these
investment scams.
He said that the committee of trade and industry has jurisdiction over issues that
concern domestic and has the mandate to inquire into investments bought and offered to
the public to ensure consumer protection.
On the other hand, he said that the committee on banks and financial intermediaries
has jurisdiction over issues relating to securities and securities exchange and has the
mandate to ensure the protection of investments in the country.
Considering the alarming rise in companies that are either unregistered or
registered but still not authorized by the SEC to offer or sell investments to the public, it
has become the duty of both committees to investigate the matter and determine liability
or points of improvements for the SEC and other appropriate agencies involved in
precluding scams, Batocabe said.
He further said that both committees must also evaluate whether or not existing
laws are still adequate to protect the public against such investment scams and if possible,
craft remedial legislation that will ensure the prevention of investment scams. (30) mvip