Promising high payouts: Investment scam busted

CEBU, Philippines —  Elements of the National Bureau of Investigation (NBI) swooped down on an investment company that operates as a store for various products allegedly as a front but, in reality, defrauds its investors.

Supervising Agent Arnel Pura of NBI Mandaue Field Unit said the operation stemmed from a complaint filed by five complainants last May 6, 2020.

The complaint mentioned the name of a certain Joel Ukay, who represented himself as president and chairman of JStore Worldwide Innovation Corporation whose main office is located on Patalinjug Avenue, Lapu-Lapu City.

“Allegedly the subjects, referring to Ukay and his incorporators of JStore Worldwide Innovation Corporation, defrauded them (complainants) into investing their money on the pretext of a typical multi-level marketing scheme,” said Pura.

Investigation showed that the complainants were persuaded to invest a minimum amount of P10,000 into the company.

In exchange, they received various goods such as coffee, cosmetics, perfumes, liniments, and others.

The complainants said they were enticed to make the investment since they were promised that their money would double in around 100 days.

Further, they were also assured that they will be given P50 everyday as additional incentive for their investments.

According to Pura, this company has at least 114 stores in Luzon, Visayas and Mindanao.

The company’s headquarters in Lapu-Lapu City became the subject of a search warrant issued by Hon. Judge Roel Saladaga of RTC Branch 69 in Lapu-Lapu City. Accordingly, the incorporators of the said company are based in the same city.

NBI then coordinated with the Securities and Exchange Commission, where it appeared in a certification that Ukay and his vice president, a certain George Tampos, were not authorized brokers or investment solicitors.

“And also the officer (from SEC) certified that this company is not authorized also to engage in a solicitation of investment coming from the public, which is a clear violation of Securities Regulation Code,” said Pura.

Pura said they are preparing charges for syndicated estafa against Ukay.

Meanwhile, during the implementation of the search warrant, five individuals were arrested but they insisted that they had nothing to do with anything illegal as they were only working as store attendants.

“Sa pagkakaron kay kami store staff ra jud mi, dili mi sa admin. Sa store igo ra gyud mi mo-recieve kung naay mo-purchase gyud,” one of the arrested individuals said.

 Pura said Ukay was nowhere to be found at the store when the search warrant was implemented.

However, Pura vowed that NBI will proceed with the regular filing.

Modus

Agent on case Agapito Gierran said the investment scheme included the need to recruit downline, which makes it a pyramid scheme.

“Base sa presentation, magre-recruit ka via pyramiding, then you will be given an account, you will register it kasi meron silang apps. Andami ding nabibiktima na OFWs because of these online apps,” said Gierran.

Gierran said the complainants were able to receive their payouts at first. However, most of them reinvested such payouts into the company.

The company also allegedly gives incentive to those who could recruit more individuals.

Gierran said the investment amount scammed by the company may have reached billions.

In an interview, one of the complainants who refused to be named said she started investing last June 2021. All in all, her investment has reached at least P150,000.

“Mao nang naabot ko sa ing-ani kay nireklamo ko kay dili na nila iuli akong kwarta, kay ang tag-iya, si Joel Dela Cerna Ukay, nagpagawas og memorandum nga imbis na iuli among kwarta, papun-on pa mi og another 10,000,” she told members of the media.

Pura urged those individuals who might have also been victimized by the same company to come forward and formally file a complaint. – JMD (FREEMAN)