Cops catch 63 investment scam suspects
Authorities have shut down a major online investment scam hub posing as a call center and online trading company in Barangay San Antonio, Pasig City, and arrested 63 suspects, one of them a 55-year-old foreigner who was the alleged mastermind of the operations.
The police later discovered the foreigner had an outstanding arrest warrant issued by the Pasig City Regional Trial Court for 70 counts of tax-related violations under the National Internal Revenue Code, as amended, with a total recommended bail of P8.4 million.
The PNP Anti-Cybercrime Group (ACG) said the May 20 raid was based on complaints from people who claimed they were lured into investing in the company through online advertisements and by individuals who posed as trading assistants and investment advisers.
“The SEC (Securities and Exchange Commission) has records and alerted us, providing information. Aside from the three senior citizen-complainants who went to us, there are reportedly many more victims,” PNP ACG director Maj. Gen. Wilson Asueta said in a press briefing at Camp Crame on Tuesday.
He said they were trying to contact the other victims “so they can file cases against the subject personalities.”
The PNP ACG, in coordination with the SEC, Presidential Anti-Organized Crime Commission and Department of Justice–Office of Cybercrime, raided KLSJ Call Center Services on May 20.
They uncovered an organized scheme involving marketing staff, telesales agents and retention agents who used scripted messages across various online platforms to convince victims to invest in an online investment and trading platform called XTrade.
Investigators discovered the suspects used false identities, encouraged continuous deposits from victims and manipulated withdrawal processes to make the platform appear legitimate.
Not SEC-registered
A check with SEC showed the call center and XTrade were not registered or authorized to solicit investments or conduct any securities-related operations.
“Based on our investigation, it has been operating for almost 10 years, changing company names over time,” Asueta said.
He added that the minimum investment required is approximately P6,500, although the total amount involved has yet to be tallied due to incomplete accounting data.
The arrested individuals face multiple charges, including violations of the Cybercrime Prevention Act of 2012 (Republic Act No. 10175) and Financial Products and Services Consumer Protection Act (RA 11765).
