Coop allegedly scammed Tisa residents

CEBU, Philippines — Police are set to file estafa charges against two officers of a cooperative in Cebu City that allegedly scammed at least 30 of its members in Barangay Tisa.

The group is called God The Father Credit Loan Cooperative and, based on police investigation, it allegedly promised items to its investors in exchange for the money they bring into the coop.

Police Major Henrix Bancoleta, the chief of the Punta Princesa Police Station, said the cooperative was founded by a certain Christopher Tundag and its lead recruiter is a certain Marjon Mainit from Barangay Pahina Central, last year.

“Ang ilang system is mu-down ang kliyente og money depende sa value sa gadget na iyang gusto, and after a month, modawat na sila… pwede motor, or four-wheels (Clients would make a down payment depending on the value of the item they want and, after a month, they will get something… it can be a motorcycle or a four-wheel vehicle),” Bancoleta told The FREEMAN.

But the cooperative reportedly closed in May this year, less than a year since it started operating.

The members reportedly demanded to have their money back even before the coop closed but the checks issued them reportedly bounced.

Bancoleta said the 30 Tisa residents sought their help in the wake of the police operations against the alleged investment scam companies in Cebu City and Mandaue City – Organico Agri-Business Ventures Corporation and Ada Farm Agriventures.

Bancoleta urged other members to come forward and bring with them documents to support their complaint, including a request for cash back.

The Punta Princesa police will furnish a copy of its investigation to the Criminal Investigation and Detection Group-7 that is currently investigating investment scams here.

Detecting Scams

Earlier, Cebu-based stock market trader Marco Nino Velasco of Maybank ATR Kim Eng Securities shared four tips in spotting investment scams.

He said if the company is soliciting investments, the public must check if it has a secondary license from SEC. If the company is getting money from the public and promises to give a return, it is considered as a financial security and needs a secondary license. Getting a secondary license is very hard to get and scams don't have secondary licenses.

He also advised that the public stay away if the company promises very high guaranteed returns. While earning 30 percent to 50 percent a month can be possible (from trading financial securities), doing it consistently is close to impossible.

He said getting returns or profit from merely inviting other people to join is already a very red flag. Profits should come from selling securities or providing some service, not from inviting people. The latter is a ponzi scheme.

Lastly, he advised that the public check the background of the people running the company and ask specifically if they have experience in investment. Aside from experience, it is also better to check their credentials – certifications, educational background, etc.

"To see if it is a potential scam or not, people should do due diligence before investing. People should know the characteristics of those scams that came and ran. It's the same scheme over and over again," Velasco said. —  JMO (FREEMAN)