Investment Scam or Investment Fraud
- Legis Lative
- Feb 25
- 5 min read
Ayon sa balita, ano-anung provisions sa Securities Regulations Code ang possibleng nalabag ng mga kilalang personalidad sa diumano ay investment scam?
The Securities Regulations Code mandates that securities cannot be sold or distributed without registration filed and approved by the Securities and Exchange Commission (SEC). Violators of provisions of SRC may face fines of up to P5 million, imprisonment of up to 21 years, or both.
Questions: In these so-called “investment scams”, which specific provisions of the Securities Regulation Code or RA 8799 are being violated?
Answer: SRC provisions possibly being violated are as follows:
1. Section 8. Requirement of Registration of Securities. – 8.1. Securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission. Prior to such sale, information on the securities, in such form and with such substance as the Commission may prescribe, shall be made available to each prospective purchaser.
2. Section 26. Fraudulent Transactions. – It shall be unlawful for any person, directly or indirectly, in connection with the purchase or sale of any securities to:
26.1. Employ any device, scheme, or artifice to defraud;
26.2. Obtain money or property by means of any untrue statement of a material fact of any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or
26.3. Engage in any act, transaction, practice or course of business which operates or would operate as a fraud or deceit upon any person.
3. Section 28. Registration of Brokers, Dealers, Salesmen and Associated Persons. – 28.1. No person shall engage in the business of buying or selling securities in the Philippine as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered as such with the Commission.
28.2. No registered broker or dealer shall employ any salesman or any associated person, and no issuer shall employ any salesman, who is not registered as such with the Commission.
(Sections 8, 26 and 28, SRC)
Investment scams most of the time involve criminal offenses under the RPC or Swindling by Syndicate under P.D. No. 1689, such as:
(Article 315- Estafa: This provision penalizes acts of fraud or deceit that cause financial loss to another party.
P.D. 1689-Syndicated Estafa: Involving 5 or more perpetrators, this form of estafa imposes heavier penalties.
[Accompanied a client in filing his Verified Answer to the Show Cause Order from the Securities and Exchange Commission (SEC)]
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IN THE NEWS:
"A Pasay court has ordered the Bureau of Jail Management and Penology (BJMP) to release actress and businesswoman Neri Naig-Miranda.
"The BJMP received the court order issued today by RTC (Regional Trial Court Branch) 112 ordering the release of Nerizza Miranda," BJMP spokesperson Jail Supt. Jayrex Bustinera said in a message to GMA News Online.
Naig-Miranda was arrested for alleged syndicated estafa and violations of the Securities Regulation Code at the basement of a convention center inside a Pasay City mall on Saturday, November 23.
In its order, the Pasay RTC quashed the arrest warrant issued against Naig-Miranda in her syndicated estafa case, noting that there was a procedural defect in the service of process.
“While a subpoena was issued by the OCP (Office of the City Prosecutor) Pasay City to notify accused Miranda of the charges leveled against her, it appears that the said subpoena was sent to… Batangas City instead of the correct address of the accused located at… Cavite,” the court said.
The court said that even if this was an honest mistake, Naig-Miranda was still not properly notified of the proceedings.
The court said this is a denial of her right to due process.
“[T]he lack of proper notice to accused Miranda in flagrant violation of her constitutional right to due process of law invalidates the preliminary investigation conducted by the OCP-Pasay City as well as the subsequent acts or proceedings emanating therefrom,” it said.
It also ordered the Pasay City Prosecutor's Office to conduct a new preliminary probe.
Meanwhile, it denied Naig-Miranda's motion to withdraw the information or case against her.
The actress is currently at an undisclosed hospital for medical evaluation.
According to Jun Veneracion’s report on Super Radyo dzBB, Bustinera said that Naig-Miranda will no longer be brought back to the Pasay City Jail female dormitory.
In November, Naig-Miranda’s camp filed a motion to quash the case against her. Due to this, her arraignment for her alleged violation of the Securities Regulation Code was moved to Thursday, January 9, 2025. Naig-Miranda's arraignment for syndicated estafa set on Tuesday, December 3, was postponed as the court is still waiting for the comment from the prosecutor.
Chito Miranda, Naig-Miranda’s husband, has defended her, saying she was only an endorser and her face was used to get investors. —AOL, GMA Integrated News”
"Comedy actress Rufa Mae Quinto broke her silence in relation to her involvement with the company Dermacare.
In an exclusive interview with GMA News, Quinto maintained her innocence, emphasizing that she, too, was allegedly a victim of the company.
“I’m also a victim here, so we will face everything. Also, it’s not good because my reputation is being ruined here. That’s why now, I will face this to clear my name,” said Quinto.
When asked if she would file countercharges, Quinto responded with her signature humor: “We will think about it. If I still have a mind.”
“Let’s finish this first. One at a time. Because I just arrived from the US. So, one by one, step by step,” she added.
The actress also clarified her limited involvement with Dermacare, claiming she was not paid and had her endorsement contract canceled.
“They also canceled me as an endorser. I haven’t met or known them. In fact, I also wasn’t paid. All the checks bounced,” the comedy actress revealed.
Quinto then turned into a serious tone, urging authorities and the public to direct their attention to the company’s real operators.
“Who they should look for is the owner. I hope you highlight who is the real suspect here.
Just because you’re an artist, it doesn’t mean you’re always in the news,” she stated.
Quinto voluntarily surrendered on Wednesday, Jan. 8, to the National Bureau of Investigation (NBI), after an arrest warrant was issued against her by the Pasay court.
The charges against Quinto reportedly stem from her involvement with Dermacare, a company also linked to legal issues faced by actress-entrepreneur Neri Naig.
Source:
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