So, you made money in a Ponzi scheme. It was a gamble you took and you went into it with eyes wide open. No big deal, it was your money anyway.
However, chances are you convinced your kumare, your cousin, your officemate, and your driver. It was their chance to get rich, you said. Hey, they made some money too -- for some time. Unfortunately, bad people like the media and the government tried to get their cut and the entire thing went up in smoke. You shrug and say, I only invested what I could afford to lose.
Sorry to say, the happy story does not end there.
The Securities and Exchange Commission and the Anti-Money Laundering Council confirmed Thursday that recruiters in Ponzi schemes, even if they had no takers, could be jailed and their assets frozen. The technical term is civil forfeiture. That means assets can be frozen even while recruiters' lawyers are still trying to defend them in court.
“If you recruited, you may be unduly linked to activities defined under the Anti-Money Laundering Act as a predicate crime,” AMLC executive director Vicente Aquino said. Jail term is from 7 to 21 years; fine from P50,000 to P5 million.If you are merely an investor, however, the government cannot go after you. You are a victim and you are encouraged to approach the SEC and file a complaint in written form. This is exactly what is happening right now. Victims are coming forward and filing complaints against Francswiss, Deutchfrancs and SMFund.com and other Ponzi schemes. SMFund.com offers the same arrangement as Francswiss and Deutchfrancs except that the minimum investment required has been “McDonaldized” to $10 from Francswiss’ $1,000 and Deutchfrancs’ $10,000. It guarantees a return of up to 3% in a day.
“There is no legitimate venture on this earth that can offer a 4.5% or 6% return per day, even if it’s a foreign currency-denominated investment. Even pawnshops earn 3% per month,” Guevara said.Names of six persons have been forwarded to the National Bureau of Investigation earlier this afternoon because they paid for advertisements soliciting investments for SMFund.com in publications based in Baguio City. I can just imagine how many investors have been taken in by similar advertisements, especially with the “SM” name, in other cities like Cebu, Davao, etc. Good thing, two investors have already filed complaints against SMFund.com. One borrowed money to invest and the other used his own money. After the heat generated from the Francswiss arrests spooked the operators, they said they could no longer contact their uplines. “Now they are left with an empty bag, so they have come to us and asked for assistance,” said Guevara. The SEC is checking out around 100 entities as possible Ponzi schemes. AMLC’s Aquino said the government is working on banning these websites from the Philippine cyberspace.
Reports that Francswiss is trying to work out an arrangement with SEC to be legalized is pure bull, SEC said. I am paraphrasing here, but they definitely used a forceful tone of voice. “There is no way for this type of company to be legalized,” Guevara said.Ponzi schemes are inherently and morally wrong because you rob Peter to pay Paul. “Persons earn interest not from a service or product, but from someone else’s investment,” Guevara said. Recent investment scams have become transnational in nature and Ponzi operators move from one country to the next once the government of that country is hot on its trail. Swiss Cash, for example, has already been banned in Malaysia. It made my head ache to realize that poor Filipinos were being used to pay investors from other countries. An unofficial count placed the money sucked in by these scams at P1.25 billion from up to 25,000 Filipino investors. Who said the Philippines is poor? We have this much cash just lying around, waiting…waiting for the next scammer. Don’t you fall for it, OK? Jails are never pleasant, especially in the Philippines.
Sana maraming mga "uplines" ang makulong. Alam mo Salve if you go to pinoymoneytalk and check our their forums regarding "FrancSwiss", etong mga uplines na to ay talagang walang conscience. They even justify their recruitment by warning potential investors. The bottomline is you know it is a scam and you still try to get other people into it and for that you really deserve to go to jail. By the way, ibig sabihin rin ba nito na pwedeng makulong si Gretchen at Claudine Barreto? Kawawa naman i mean siguradong pagpipistahan sa kulungan yun magkapatid sa sobrang puti ng balat nila. Ayan kasi eh mayaman na nga naging greedy pa!
You know sino bang tao ang hindi gustong magkaroon ng extrang pera, kahit na mayaman ka na, sa taas ng mga bilihin at kung ano-anong tax na dapat bayaran siyempre malaking tulong yung pwede mo makuha sa mga "investments" na ganito kasi nga tax-free. Siguro kung madali makakuha ng trabaho dito mismo sa Pilipinas and well compensated and mga workers I think less and less people would pay attention to these kinds of "scams". Maybe what the government can do is pag-aralan ang mga ganitong "investments" kasi in effect may kinikita ang mga nag-iinvest, parang money market or paluwagan din yan di ba, yung pera kapag mas malaki di ba mas malaki rin ang interes kung ipinangpo-pondo sa mga high earning business/companies. Huwag lang tagain sa pagbabayad ng tax, mas malaki ang pwede bumalik na pera sa individual investors, and in the long run mas mae-encourage ang mga tao na mag-join because they know that the money they are willing to invest will also help them to alleviate their daily cost of living and hindi sila mapra-praning sa kakaisip na baka naloloko lang sila. Mga economista ng bayan pag-aralan ninyo kung paano magiging beneficial ang pyramiding para sa taong-bayan kasi may pera na pwedeng kitain dito.
alam mo sheela,
kung ikaw muna kaya ang mag-aral, bago mo ipaaral sa gobyerno na pag aralan ang ponzi...
wala namang na gegenerate na pera ang ponzi bukod sa kukunin ang pera ng iba para ipangbayad sa iba...
sa paluwagan walang INTEREST!!!! helloo!???????
HELLOooooooooooooo???????
That's the problem with us Filipinos!!!Most of us wants an EASY MONEY, there's no such thing as an easy money!!!Even those LEGITIMATE COs using the STRATEGY OF MULTI LEVEL MARKETING is not GUARANTEEING EASY MONEY!!!! There's a SAYING, "NO PAIN, NO GAIN"
NOW in the AFTERMATH OF THESE INVESTMENT SCAMS, the most AFFECTED are those ordinary people who's relying on LEGITIMATE MLM Cos for their daily basic needs and MORE THAN THAT, THEIR FUTURE!!!
I HOPE GOVT AGENCIES WOULD ALSO TAKE THE NECESSARY ACTIONS TO PROTECT LEGITIMATE COs!!!
@sheela,
i'm not sure if we have the same concept of paluwagan, so correct me if i'm wrong but paluwagan isn't networking isn't it? it's a group of people who pool their money together with a certain amt each time period and then that money goes to a member, the next time period, the pooled money then goes to another member until everyone has had a chance to have a share. everybody gets something. nobody loses.
so tell me, how can that be networking? i really want to know.
thanks!
Kahit investor ka lang pwede kang habulin ng AMLC to recover your illegal income. Pwede ka din kasuhan as accomplice to the crime of fraud and money laundering. How do you explain dirty money going to your account without you knowing it's illegal? Ignorance of the law excuses no one. But if you cooperate with the authorities to stop the scam, hindi ka na kakasuhan. Bottomline: crime does not pay.
marami talaga ang natutulungan ng ganitong investment. Scam man o hindi nakakatulong ito, sa ginagawa ng media o gobyerno natin mas lalong nagagalit ang taong bayan sa inyo dahil lalong naghihirap dahil hindi na makuha ang mga pera nila. Sa totoo lang ayaw ng media o gobyerno na ito na mag-improve ang kabuhayan ng tao.
nagmamalinis kayo puro kurakot naman ang ginagawa ng mga naka-pwesto.
Pahirap ng pahirap ang tao sa ginagawa niyo sa totoo lang imbes na gumanda ng konti.
personally galit ako (media man o gobyerno)sa mga nakialam kaya nawala ang investment ko. lalo akong naghirap dahil sa mga inggitero at pakialamero sa bansa na ito.
i wonder how our stock market might look if those monies were invested in stocks/ bonds instead of getting invested in these instant money making scams..
@ sheela,
alam mo ba isura ng isang pyramid?
isipin mo kung bakit ito tinawag na "pyramiding scheme", ok?
at anjan na ang sagot sa tanong mong "kung paano magiging beneficial ang pyramiding para sa taong-bayan".
@sheela
A scam is a scam is a scam. There's just no way a pyramiding or a ponzi scam can help others. I know you mean well pero palaging mas marami ang biktima compared sa mga kumikita. Kung sa paluwagan nga meron lang isa na hindi tumupad gulo-gulo na di ba?
At yung system mismo kung pano kumikita ang mga scam na yan, kahit pag-aralan pa ng gubyerno, ay ILLEGAL. Kung mapag-aralan ng gubyerno na meron pala silang kakaibang system na LEGAL na kaya kumita ng ganun kalaki, susuportahan ko pa yun. Kaso walang system or business na ganun. Kahit si Warren Buffet, na isa sa mga pinaka-successful na investors sa mundo, hindi kumikita ng 4.5%-6% a day.
Sabi nga ni Salve mga Php1.25 billion ang naloko nun scam sa mga kapwa pinoy natin. Php1.25 billion na sana na-invest, nagamit sa business etc. Nakatulong pa sana sa bansa natin. Hindi pyramiding or ponzi ang sagot.
ang hirap din kasi kalabanin ng mga recruiters na to. Like for example in my experience, ang major recruiter nung time ng efund is one prominent doctor. and he has ties with the police. every time may mga meeting, nandun at kasama niya ang mga pulis. ala talaga kami nagawa. we just kept our silence ... and learned our lesson well.
@sheela. di nga paluwagan e. scam nga. read the other articles of salve and comments from other readers. hope you get enlightened and invest the right way. its much more rewarding to grow your money intelligently and with your dignity intact.
Hey Sheeia,
As pointed out on this article, there's no way on earth you can earn 3% per day interest rate. You have to sweat for your earnings. You must have a product. As much as I know, from a raw material plus its labor cost to a finish product, you can only double it for a maximum selling price and hope it sells in the market. Let's say it sells within 3 months, that's 100%/3 mos. = 33.33% per month or almost 1 percent per day only. You have also to pay government tax too as a citizen as you transact here in the Philippines. Better sweat your brain and think of a business concept that suits your likes. If you really like it fast, gamble in casino and others and throw your soul to hell.
Hayaan nyo na si sheela, baka member pa iyan ng Pyramid scam.
Well, all I can say is that pyramiding is evil, it shows man's greediness. Never yan makakatulong sa economy, ang yumayaman lang is mga uplines. Kaya ung mga gusto sumali, magisip isip nmn kau.
Edward,
Huwag ka magalit sa media at sa gobyerno..ibunton mo ang galit mo sa mga gaya ng henyong 26 anyos na si Eli Castillo na lumoko sa inyo. Hindi ka naghirap dahil sa mga inggitero at pakialamerong gaya namin, dahilan yan ng "GREED" o sa tagalog KASWAPANGAN
Sheela--
U really think if pipol are not poor, then they will not engage in these scams? Be real!
It's really greed or ignorance or stupidity or rotten values (take ur pick).
And u realy believe this is a form of investing??? Pag-aralan mo ngang mabuti kung san nanggagaling ang pambayad nila ng outrageous promised return sa mga naglagay ng pera nila.
(...hay naku...some pipol don't really get it...)
@edward
nakikiramay ako sayo pre kung nde ka nagpaloko nde ka mawawalan ng pera e kaso nagpaloko ka kaya next time matuto ka na ha...
at wag nyong sisihin ang media at gobyerno dahil sa katangahan nyo please lang.
Alot has been said already about this, and the bottom line is, the numbers simply do not add up.
No matter what angle you see it from, 4.5%, (or 3%, or 5%) daily returns generated from legal means, (in whichever country you happen to be) is simply impossible.
The returns generated come from the investments of the newer members. Simply put, you get money from Peter-to-pay-Paul because Paul's money was already paid out to the earlier members of the pyramid.
The SEC, the NBI, the AMLC and the media (which are perceived to be "inggiteros" or "paki-alameros" by some segments) are trying to protect the interests of the masses. (a vast majority of which, unfortunately, seem to be found lacking in financial literacy.)
Think forward for a bit. Can you imagine how it would turn out if this scam (and many others) progressed to a larger scale if it was left to be? If everybody and their brother was part of the HYIP pyramid? Even if it had millions of members, sooner or later the pyramid runs out of people to get money from, and it collapses. Disaster for the majority. (except for the people who got in first.)
Possibly even economic slowdown if it gets to a large scale.
Picture that scenario. Businesses whose owners "rolled" their "investments" and didn't get a cent are in trouble. Employees from these businesses either get fired or get a reduced salary. People find themselves in debt. (after all, some of the participants had to borrow money to "invest") and we end up a lot worse off.
Then probably everybody who lost money puts the blame on the government for not intervening when they should, and the media for not exposing the scheme for what it is.
Chances are, the first persons you "recruited" (if ever you chose to recruit) turn out to be close friends and family. This being the case, when the pyramid collapses, it is entirely possible that you end up with a lot of money, and your "recruits" end up with nothing, or worse, in debt.
(Some people will say that the people who lost money are "ta-tanga-tanga" for doing so. But face it, money in itself is a complicated thing, you can't expect all the people to be absolute experts in handling the money they have right off the bat.)
I hope this FS fiasco serves as a wake-up call for everyone. (both non-FS investors and the FS "investors".)
Its your money. You undoubtedly worked hard for it. The very least you can do is learn how to use and respect it.
"marami talaga ang natutulungan ng ganitong investment. Scam man o hindi nakakatulong ito, sa ginagawa ng media o gobyerno natin mas lalong nagagalit ang taong bayan sa inyo dahil lalong naghihirap dahil hindi na makuha ang mga pera nila. Sa totoo lang ayaw ng media o gobyerno na ito na mag-improve ang kabuhayan ng tao.
nagmamalinis kayo puro kurakot naman ang ginagawa ng mga naka-pwesto.
Pahirap ng pahirap ang tao sa ginagawa niyo sa totoo lang imbes na gumanda ng konti."
@ricky maquiling
PANO MO NAMAN NASASABI NA MARAMI ANG MATUTULUNGAN? SA STRUCTURE PA LANG NG PYRAMID OR SCHEME, KITANG KITA NAMAN NA MAS MARAMI ANG NATATALO DAHIL MAS MARAMI ANG NASA BABA. TIGNAN MO MUNA KUNG ANO ANG ITSURA NG TATSULOK AT SABIHIN MO SA AKIN KUNG BAKIT MAS MARAMING MATUTULONG KAYSA SA HINDI.
Wag ka na magreklamo kung nawala ang pera mo dahil sa scam na yan. Pera mo yun at ikaw ang desisyon na ilagay dun. Wag ka na gumawa ng excuses na naiinggit ang mga nagsumbong dahil wala silang pera panginvest. May pera kami pang invest pero nilalagay namin ito sa mga LEGIT na negosyo. Mga LEGIT na negosyo na may business address, contact nos., board of directors, mga dokumento na sila ay isang investment company, at yung mga LEGIT na kumpanya na hindi nawawala na parang bula pag nalalabas sa dyaryo na "scam" sila at kayang patunayan na hindi sila scam. Wag mo idamay ang gobyerno dito dahil dapat naman talaga HINDI tayo umaasa sa ibang tao para yumaman. Kapag hindi naman tayo mayaman, DAPAT HINDI rin tayo umaasa sa gobyerno na sila ang aahon sa atin para sa isang maayos na buhay. Ano naman ang masama sa ginawa ni Salve or sa mga nagreport ng scam na ito? Mabuti nga na nalaman ito ng maaga at mas marami pa ang mawawalan ng pera tulad mo. Sa susunod kasi, magresearch ka muna and wag ka mabulag sa sales talk or pitch ng mga recruiters na yan. Wag ka rin masyadong mabulag sa kikitain mo. If it is too good to be true, investigate.. confirm.. and conclude. h
THERE IS NO SUCH THING AS EASY MONEY. YUNG KARAMIHAN(TAKE NOTE:KARAMIHAN!) SA MGA PINAKA MAYAYAMAN SA MUNDO, PINAGHIRAPAN ANG PERA NILA.
*to the defenders of scams, please use arguments that can back up your statements and do not use lame excuses like "the government, envy, crab mentality,help other people out of their poverty, or the like". A scam is a scam no matter how you manipulate or change its structure. A scam will only benefit the founder and his/her cohorts(and other people who were able to start early in the scam) and not the ones from middle to bottom.
@Edward,
so you're poorer by a few thousands. Its your disposable income I supposed. I agree with @scud, its plain greed.
meantime, I suggest you do some reading like Colayco's book or other reliable materials not just the propaganda so you'd be enlightened.
most of us will not get rich without sweating. kaya nga makikita mo pa sa mga jeep - "katas ng saudi" ibig sabihin pinaghirapan. Si Pacquiao nga nagpapabugbog bago magkamilyon. lol.
hay naku! some friends were saying they can still get their $45 by asking friends in singapore to check from francswiss website there. they said it's banned only in the philippines. is that possible? goodness! they just won't give up ha!
John Paul Tan, sometimes i sigh in frustration when I read about people who refuse to listen to the voice of reason, but I find myself appreciating the fact that everyone can speak their mind. It helps me understand other people to hear what they are thinking about. Before MoneySmarts, I knew next to nothing about blogging. Realize, however, that blogs allow us to process and think about issues, rather than just accept them passively just like what happens when we watch TV. Blogs rule! :-)
sheela, as i have said again and again, responsible investors dont just chase the returns. Di lang "kita" ang dapat habol natin, kundi kung anong end-result ng isang economic activity o transaksyon. Kahit hindi ipasara ng gobyerno ang pyramid at Ponzi schemes, babagsak at babagsak yan kaya ang dapat gawin, protectahan na lang ang mga magiging biktima, sa pamamagitan ng pagpapasara ng mga ito. Meron kikita ng malaki, posible yan, pero mas marami ang iiyak dahil na rin mismo sa structure ng operasyon.
I know what it feels like to be in it. I know what the networkers are all telling each other, probably even telling themselves. These arguments are all lies and cheap attempts to rationalize the business they have gotten into. Don't believe them. Listen to your conscience.
@ ricky maquiling
snip>>
scam man o hindi nakakatulong ito
honestly, man, i dont even know how to respond to this one. *just walks away*
@COAL
Si Pacquiao nga nagpapabugbog bago magkamilyon. lol.
Too funny, Coal hahaha.
Ang hira kasi sa mga uplines because they're hooked up, they try to rationalize everything.
It is a simple truth, PONZI is an unfair business because they are using somebody else's money to pay someone and not from any profit
Francswiss is a PONZI scheme. PONZI is a scam or crime. Organizers are the principal. Those who help the principal undertake the crime are accessories.
Therefore uplines can go to jail.
@GMANEWS, i had to take down your comment because copying and pasting the entire article from another website is an infringement of copyright laws. thanks
@edward, ricky, sheela
please lang gumising na kayo. wag nyo kaming akusahan ng inggit dahil sa totoo lang eh kayo ang inggit sa mga kumikita sa PONZI na yan kaya kayo sumali. wag kayong parang si Wendy na idinadahilan lagi ang HIRAP, dahil sa totoo lang kung mahirap ka wala kang $1000 na pang invest, at walang magpapautang sayo nun. wag nyong sisihin ang MEDIA, dahil trabaho nila i-expose ang mga ganito. sisihin nyo ang Francswiss. Nasaan sila nung kelangan nyo sila? Bakit hindi sila lumabas at harapin ang issues sa kanila? Pinapatunayan lang nila na scam nga sila.
Wag nyong sisihin ang GOBYERNO. ganayan naman tayong mga pinoy eh pag walang ibang taong masisi goyerno ang sisisihin. Kayo nga ayaw nyong magbayad ng TAX. dapat senyo pabayaan ng gobyernong makulong dahil ayaw nyong tulungan ang gobyerno. paano ma-improve ang public services kung walang tax? tapos i-example nyo pa ibang bansa, e mas malaki tax dun. baka umaray kayo. Tapos sasabihin nyo kurakot, etc. kung malakas kurakot sa gobyerno aba eh di pumasok kayo sa gobyerno dun pala malaki kita eh. maraming nakikialam sana nabawi ang pera? paano babawiin? mag recruit pa para dun sa ni-recruit kunin ang ipambabawi sayo? gumising na kayo! kaya madaming scam sa bansa na to maraming tumatangkilik sa mga scam na ito! payo ko lang kung may $1000 din lang kayo palaguin nyo sa LEGAL. ang daming legal na pwedeng paglagyan ng pera. iba't ibang level ng risks. yung mga nag invest sa scam eh mukhang riskiest ang pinuntahan. ayan you also risk going to jail...
What PBF said =p
Tanong ko lang, is Network21 a scam?
pointsharextreme aka PSX is another scam operated out of La Union
I guess, for those who lost their money on these investment scams, think of it as 'The price one paid to learn a very very valuable lesson - be wise with your hard earned money. Research, ask and confirm. Easy money is not the answer'. Let's keep in mind these important lessons and make better and informed decisions next time. :)
if its too good to be true, it usually is...
i second what PBF said, too, haha...
the posts from the scammers/scammees (if there is such a word) are quite funny...pinanindigan talaga ang scam...
labo...
haha
Its good that the Securities and Exchange Commission and the Anti-Money Laundering Council passed rigid laws on the Ponzi schemes. It was during the Ponzi scheme scandal or scam there were some other schemes making its rounds as well but luckily their pioneering social works stopped. After these kind of scams many networking type of business showed up even on the internet but it all sounded too fishy to me. There are a lot of home based business these days which are trustworthy since we they pay only if we work, that makes sense and not like the short way ponzi scheme introduced. With unemployment problem on the rise such kind of home based schemes will be launched every now and then but we as investors have to be cautious and do some homework before investing our hard earned money.
Liepers Fork homes
Ponzi Schemes are named after Charles K Ponzi, an Italian who emigrated to the USA. Ponzi was a dapper five foot two inch rogue who ran such a scheme in Boston during 1919 1920. Ponzi raked in an estimated $15 million in eight months by persuading tens of thousands of Bostonians that he had unlocked the secret to buying Ginault Watches
as well as easy wealth. $15 million, in 1920: that's a huge amount of money now, let alone then!
Mark R. Simmons tells the Ponzi story very well:
Ponzi schemes may be explicitly illegal, or may fall under statutes that address fraud or larceny, making them implicitly illegal: assuming there is intent to permanently separate the investors from their money.