The man behind alleged investment scam was arrested by police authorities in Barangay Muzon, San Jose del Monte Bulacan.
The suspect is identified as Sherwin Piramide, who according to GMA report, amassed P30 million pesos. Majority of his victims is said to be Overseas Filipino Workers (OFWs).
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According to Police Superintendent Fitz Macariola, chief of police of San Juan del Monte, Bulacan Police, it's been awhile since they are receiving complaints against Piramide because of an alledging investment scam.
His modus operandi is to encourage his victims to put investment in his housing project business and promise 10 percent revenue each month.
But the suspect disappeared after he received money from his victims. Most of his victim is said to be OFWs.
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Based on the police investigation, the suspect collected around P30 million in the said investment scam.
The suspect, Piramide is now facing large-scale estafa from different courts.
According Piramide is he is ready to face complaint against him.
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The San Juan del Monte Police is urging victims of the suspect to go into their office to file a formal complaint against Piramide. SEE MORE:
Before getting excited about how much money you can get from a certain investment, make sure it is legit and not just another pyramiding scam in the internet preying anyone else, especially Overseas Filipino Workers (OFWs). As they said, "If it is good to be true, it is not true".
Former OFW, Jun Amparo, a personal finance advocate and a founder of Richly Blessed Today gives five practical ways on how to tell if an investment scheme is a scam.
This is important as a guide to financial decision in the future not only for OFWs but to everyone who aims to be financially stable.
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1. Educate yourself and understand the business model
Before putting your money into an investment, it is important that you know the business model. Know the business name, how it works, and educate yourself before making any financial decision.
Do some background check with the company. According to Amparo, "If the company has a vague investment methodology and fails to explain how you will possibly generate returns, chances are it is a scam."
So, if someone invites you to a certain investment, even it came from your trusted friend, think of it a hundred times before deciding.
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2. Promise of high return in a short period of time
Amparo said, "one fundamental principle of acquiring wealth is it's being built over a period of time." It mean's there is no such thing as an instant millionaire in a short period of time in investing.
The main reason why many people are being tempted to invest their hard-earned money is that they are blinded with promising rewards or big return of money.
Back to number 1, do some background check first before committing your money so you will not end up being scammed in investment.
3. Investment company has a good reputation and leaders have integrity
Always check the credibility and integrity of the company. Read and understand what they are offering. Ask a question to know more and to clear your doubts. The investment comes with risk but this risk can be lessened if you know what you are into.
You will loose nothing if you seek advice from experts about investing especially if you are new investors.
Stay away from people or company with known unethical fraud practices or records.
4. Earning money without product movement or services
This is the very common type of "investment" nowadays. Recruiting new members without offering products or services. Be cautious about people who are trying to persuade you to invest without certain products or services involved.
5. Approval or recognition from the government
Does it have a permit to operate? How will I know as a new investor? Here in the Philippines, you can check it with the Securities and Exchange Commission (SEC). Also, you can search the internet regarding the investment being offered to you. There are public advisories and warnings about fraudulent investment schemes and companies you know about.
"If It's Too Good To Be True, It's Not True." They say this quote is the best investment advice. We often hear this saying but sometimes we are still carried away by sweet promises.
Just like a Filipina based in Japan who falls into investment scam offered on social networking sites.
The victim, "Sarah", not her real name said, she and her friends in Japan loose up to P1.2 million pesos in an investment scam.
Sarah believes that the business offer presented to her by a woman who introduced herself as "Princess Polinar Micabalo" from Ozamiz City, was true.
She met Micabalo in a group chat from social networking site Reahlity Hartz Hardships or Your Helping Hands Profit Sharing and began to woo her into investing in several opportunities. SEE ALSO: WATCH: HOW OFW LOSES P150,000 TO EMAIL HACKER
Sarah invested P180,000 and after a month, she received P225,000 payout.
Because of this, the victim encourages her Japanese friends to also invest their money in the business. Their pooled investment reached P1.2 million.
According to Sarah, she did not doubt Micabalo because she was very transparent to talk to and even sent her two "valid" identification cards and a contract and also posted her photos online.
But after the money was deposited, she heard nothing from Micabalo and her social media account has been deactivated. In the end, Sarah still delivered on her financial promise to her friends in Japan.
Sarah added, she learned that Micabalo has been scamming people, especially OFWs, for years now.
She also warns OFWs who wants to invest their hard-earned money to investigate first the offered investment before giving in.
Accordingly, Micabalo uses different investment names to entice people but uses the same name and photo to transact with would-be-victims.
