Scams and New Laws update

Once again I have been receiving questions on certain investment schemes or scams, so here’s an update with potential new economic or business-related laws.

Scam Update

Once again the Securities and Exchange Commission has been strengthening its efforts against investments scams following its crackdown against Kapa-Community Ministry International, which has allegedly collected at least Php50 billion worth of investments from the public. A criminal case against Kapa, its founder, and officers is now pending.

CIDG arrests 4 suspects in alleged investment scam - The PNP launched the operation after an unnamed complainant claimed that a certain Broilerprenure Corp. is allegedly soliciting money for investment with a promise of a 100% interest payout after 40 days, but 12% will be deducted as facilitation fee, making the return on investment at 88%. CIDG will file complaints of direct assault, resisting arrest and disobedience against the suspects.

SEC Advisory again - SEC warns the public against a group operating under the names Brix Gamefowl Breeding, Brix Ventures, Inc., and AB Eugenio Trading, for illegally soliciting investments. It found the group to be soliciting at least Php998 worth of investments to buy two chickens, in exchange for Php3,000 in returns after 90 days. Returns could reach up to Php7,000 for 180 days, and up to Php20,000 for 360 days.

While duly registered as a corporation, Brix Ventures has not been authorized to offer, solicit, sell, or distribute any investment or securities to the public.

Online Lending schemes stopped - 19 online lending applications were ordered to stop are Instant Pera, QuickPera, Lendmo Philippines, Binixo, CashBus, Cashcat, Cashuttle, Crazy Loan, Flash Cash, Happy2Peso, Hatulong, MeLoan, MoneyTree Quick Loan, Pera Express, Pera4u, Peramart, PesoLending, QuickPeso and Umbrella.

Section 4 of Republic Act No. 9474, or the Lending Company Regulation Act of 2007, requires that a lending entity be established only as a corporation. It further provides that “no lending company shall conduct business unless granted an authority to operate by the SEC.”

Violators may face a fine ranging from Php10,000 to Php50,000 or imprisonment of six months to 10 years or both, under Section 12 of the Lending Company Regulation Act.

Upcoming business/economic laws

Republic Act No. 11449 - signed by President Rodrigo Duterte on August 28 but made public only recently, amends Republic Act No. 8484 also known as the Access Devices Regulation Act of 1998, to impose stiffer penalties to crimes involving skimming, forging of credit and debit cards, as well as possession of devices used to illegally access bank systems and accounts.

Under the new measure, hacking of a bank system as well as skimming of online bank accounts are considered as economic sabotage—a non-bailable offense—and carries a penalty of life imprisonment and fines ranging from Php1 million to Php5 million. It also grants additional powers to the National Bureau of Investigations and the Anti-Cybercrime Group of the Philippine National Police to pursue further investigations of fraud.

Anti-Violence Against Partner and their Children Act - a measure that amends the Violence Against Women and Their Children Act of 2004 by expanding its coverage from women to all those who experience acts of violence from their partners. Partners who require their counterpart/husbands/wives to turn over their entire salary to them will be committing economic abuse and will be punished under a proposed law at the House of Representatives

That’s all for now, keep sending those questions via my email/instagram/facebook !

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