Help fight fraud



Teamwork makes the dream work! The dream? More Filipinos who can spot fraud or scams! On previous articles, I have discussed different forms of scams from agribusinesses, to pyramiding, to the typical red flags. But once again, more and more fraudulent activities keep popping up.

Thank you SEC - Securities and Exchange Commission for keeping the investing public vigilant & safe!

Recap on the Investment Law

Even if the company has a certificate of incorporation, it only grants an entity a juridical personality and does not constitute an authority to engage in activities requiring a secondary license from SEC, such as selling and offering securities.

Section 8 of Republic Act No. 8799, or the Securities Regulation Code (SRC), securities such as investment contracts must not be sold or offered for sale or distribution without a registration statement duly filed and approved by the SEC.

SRC Section 28 further states that no person shall engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered with the SEC. Those who do may be held criminally liable with a maximum fine of Php5 million or imprisonment of up to 21 years or both.

Citing Rule 3.1.17 of the 2015 Implementing Rules and Regulations of the SRC, the commission noted that public invitation to invest constitutes the public offering of securities. Therefore, any solicitation or presentation of securities for sale through any of the following modes shall be presumed to be a public offering: advertisement or announcement in any radio, telephone, electronic, information communication technology or any other forms of communication.

Cacao, Perfume & more Scams

SEC’s Enforcement and Investor Protection Department has recently posted several advisories. It has advised the public against dealing with Tabale Cacao Farms, Togachat Academy Philippines, Inc., Scentko World Corp. and its parent firm, Brendahl Cruz Holdings Inc. for their unauthorized solicitation of investments.

Tabale Cacao Farms is another typical agribusiness scheme and Togachat Academy, has been found to be enticing people to invest a minimum of Php5,000 in exchange for high monetary rewards.

Scentko World Corp. and Brendahl Cruz Holdings Inc. has an illegal perfume investment scheme that promises a 400-percent return on their “buy and earn” program. Buy a beauty package for Php5,000 and get a promised a return (or cash sales reward) of Php20,000 in more or less than 30 days. They also encourage recruitment with a 10% referral fee of the amount invested by the new member.

Healthcare Fraud

PhilHealth wants cooperation with the public in order to avoid fraud and intensify efforts to fight against healthcare fraud and look after the welfare and uphold the rights of fellow members.

I have summarized the following key points:

  • Do not to sign a blank claim form or lend their PhilHealth ID or Member Data Record to anyone.
  • Always clarify/check the bill or statement of account before being discharged from the hospital. There’s a scheme that adds “bogus” medical services or supplies even if these were not availed.
  • Be wary of marketing programs by a medical center or hospital, devious person or a group luring member-patients who are scheduled for treatment of operation.


Help fight fraud! Report to PhilHealth’s 24/7 Corporate Action Center Hotline, (02) 441-7442, or e-mail to actioncenter@philhealth.gov.ph.

For more updates, follow PhilHealth on facebook.com/PhilHealthofficial) and Twitter (@teamphilhealth).

If you like this post, please do share it on social media like Facebook, Twitter or any other site that you like (of course with a credit link back to this blog post).

Also, don’t forget to follow me on FacebookSpotify or Anchor.fm (for the Podcast), and Instagram for more updates and random stuff about me and this blog.
Help fight fraud Help fight fraud Reviewed by Vernon Joseph Go on Tuesday, August 06, 2019 Rating: 5

No comments