The Philippine Overseas Employment Administration (POEA) has reminded overseas Filipino workers to be cautious of unauthorized investment schemes after a group of OFWs from Saudi Arabia have fallen victim to one of them.
POEA said that OFWs should only deal with persons or entities that offer investments which possess the necessary permit from the Securities and Exchange Commission (SEC).
A group of OFWs in Dammam and Al Hassa reported that they were recruited by Sangguniang Masang Pilipino International Incorporated (SMPII), a Philippine-based non-profit organization and encouraged them to make an investment with ALMASAI Finance and Investment (now ALMASAI Equity Holding Corporation).
The OFWs said they were required to put an initial investment of P50,000 with a guaranteed interest of 5% each month.
ALMASAI also allegedly issued 13 post-dated checks, 12 of which are for the monthly earning of the investment and another check as payment of capital investment.
ALMASAI, which has an office address at EDSA, Barangay Socorro, Murphy, Cubao, Quezon City is reportedly owned by a certain Elpidio Reyes Tanaliga Jr.
The workers, after making investments reaching up to P100 million, are now complaining that they are no longer receiving any of the promised interests and have lost contact with Tanaliga. They alleged that the checks issued supposedly for their monthly earnings were declined by the bank due to insufficient fund.
According to the Securities and Exchange Commission, ALMASAI Finance and Investment is not a SEC-registered entity as a corporation or as a partnership and was not also issued a secondary license as a broker and/or dealer of securities, dealer in government securities, investment adviser of an investment company, investment house and transfer agent.
It has also not filed nor has any pending application for primary and secondary licenses with the Commission.
ALMASAI Equity Holdings Corp., despite having been registered with the Commission as a corporation, is not authorized to solicit investments from the public as the said entity has not secured the necessary secondary license or permit from the Commission as required under Sections 8 and 12 of the Securities Regulation Code (SRC). It is also engaged in ultra vires act, or beyond one’s legal power or authority, for doing business not in accordance with its purpose of incorporation, which constitutes serious misrepresentation as contemplated under Presidential Decree 902-A.
Previously, the Securities and Exchange Commission has warned the public to stop putting money in this kind of investment scheme which may turn out to be fraudulent.
The SEC said those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public including solicitations or recruitment through the internet, may likewise be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code.
The penalty for offenders is a maximum fine of P5,000,000.00 or 21 years of imprisonment or both pursuant to Section 73 of the SRC.
News source: DOLE
