Police personnel joining fraudulent investment schemes face administrative charges

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DAVAO CITY (May 30) –– Police Regional Director Brigadier General Marcelo Morales on Wednesday warned members of the Philippine National Police (PNP) under his command against joining the latest money craze- the ponzi-scheme investment.

In Region XI, which is under Morales command, Rigen Marketing (Rigen) and the Kapa-Community Ministry International, Inc. (Kapa) are popular.

Kapa promises a return of 30 percent for the money you “donate,” as they label it. While Rigen guarantees a return of 400 percent in just 30 days less or more when you invest in them. Both operates like a Ponzi Scheme.

Wikipedia said a Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. It generates returns for early investors by acquiring new investors. This is similar to a pyramid scheme  in that both are based on using new investors’ funds to pay the earlier backers.

Morales warned that those who participate in dubious investment schemes will face administrative charges, for violation of the Code of Ethical Standards and for insubordination.

But a police colonel in an interview with NewsLine.ph revealed, he invested P50,000 in Kapa, after nine months, he accumulated more or less P300,000.

The police officer said “It is a gamble, yes, but based on my experience, I already earned, what I am receiving now is my interest.”

Another police officer revealed, she invested P50,000 in Regin, and she now enjoys the interest of her money “Nag gamble lang ako, pero hindi naman ako nadaya.”.

She said “Once you put your money in that kind of business, you face the risk of losing it, but it is better to gamble in that scheme rather than bet on numbers game.”

Those investing in the easy money scheme involves professionals and even students.

Though Morales admitted, he has no solid evidence that some police officers are involved in such activities, but said he heard that some police officers are putting their hard-earned money into it.

He said it is not only the police personnel who are investing in shady investment schemes but also known local personalities who act as recruiters to attract investors.

Morales said there are about 10 establishments in the region offering shady investment schemes. Most of these dubious businesses, he lamented, have acquired permits from local government units even in the absence of authority to engage in solicitation of investments from the Banko Sentral ng Pilipinas, the Bureau of Internal Revenue, and other government agencies.

“Our ultimate goal here is to stop fraudulent schemes. Marami na ang nasilaw dhail sa taas ng interest (Many are attracted because of the high interest),” Morales said.

In an order dated May 28, Morales directed all provincial, city and municipal police chief which states “You are directed to implement the full force of the law regarding the illegal operations of any easy-money-schemes. Investigate and arrest all operators, marketing and establishments (agents) who do not have pertinent legal documents for their operations.”

In the same order, Morales directed his ground officers to provide the necessary assistance to the SEC in enforcing any legal orders against KAPA.

The SEC has ordered the permanent prohibition on Kapa not to solicit investment without the much needed license.

But despite all the warnings and threat, many put their bets in the game of chance, in the hope of bailing themselves out of poverty, in the hope of getting richer—in a country of want..-Editha Z. Caduaya/NewsLine.ph

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