PAGADIAN CITY (Mindanao Examiner / Nov. 17, 2012) – Philippine authorities said two among those involved in the P12-billion Ponzi scheme in Pagadian City have surrendered as manhunt continues for the brains behind the trading scam that duped thousands of investors.
The National Bureau of Investigation and the Philippine National Police said Maria Donna Coyme, who is reportedly the chief finance officer of Aman Futures; and Jacob Razuman, one of the firm’s top brokers, are currently being investigated for their role in the scam.
One of the firm’s brokers Anwar Zainal was abducted in Pagadian City and his body was found in nearby town of Tambulig in Zamboanga del Sur.
Coyme admitted working for Aman Futures which is headed by Malaysian national Manuel Amalilio and his Filipino partner Fernando Luna. Amalilio was reportedly in Malaysia while Luna is still hiding following the collapse of the company.
Coyme said she is willing to turn state witness. In a report by GMA News, Coyme said
she processed almost P500 million in investors’ shares and that Pagadian City Mayor Samuel Co allegedly invested some P30 million to Aman Futures.
“Coyme also alleged that Pagadian City Mayor Samuel Co invested around P30 million in Aman Futures Group and even referred investors to the company. She also said Co distributed checks from Amalilio,” the reports said.
It said Co denied being part of the scam, but allegedly admitted being also a victim of Aman Futures.
“In a separate report, Co denied being involved in the scam, saying he himself is a victim. He also said he only invested P5 million — and not P30 million as Coyme said — and that he used his own money,” GMA News said.
Police on Thursday sacked its two senior officers in Zamboanga del Sur province for failing to stop the scam.
Regional police chief Napoleon Estilles said the two officers – Senior Superintendents William Manzan, the provincial police chief, and Kenneth Mission, police chief of Pagadian City – were both relieved of their duties.
“They failed to prevent the scam despite our warning,” he said.
Interior Secretary Mar Roxas also suspended Manzan and Mission for their supposed negligence in stopping the scam and said “this is meant to avoid chances of whitewash in the ongoing police investigation into the latest get-rich-quick scheme that has reportedly duped some 15,000 individuals into investing about P12 billion of their hard-earned money.”
He said the operation of Aman Futures began in February, but police failed to act on the scam. He said the police also failed to report about the scam known as Ponzi scheme.
“This scam has been perpetrated beginning as early as February this year and there have been very loud indicators that this scam was happening. People were lining up as early as 2:00 in the morning to try to get in the premises of Aman,” he said.
Roxas said 21 other policemen who invested in the scam were also ordered back to camp to ensure that they do not use their authority to exact revenge against Aman Futures and its representatives.
He also ordered an audit into the bank accounts of the local governments of Zamboanga del Sur and Lanao del Sur provinces following reports that some officials invested in Aman Futures. “This is to verify reports that public funds may have been used to invest in Aman,” he said.
Investors said they put so much money into the trade after its owners promised to pay them as much as 50% profit in just two weeks.
The investment trading began in February this year in Pagadian City in Zamboanga del Sur province and news of its high-yield, high-profit spread like wildfire and attracted even street hawkers and tricycle drivers who poured their hard-earned savings into an overseas stock and money trading.
During the first weeks of its operation, investors were paid at least 31% and profits increased to 50% in the succeeding weeks – luring not only ordinary citizens, but politicians as well.
The Department of Trade said the people behind the investment trading were able to secure a permit for a business name and that succeeding permits carried various names of owners.
The Securities and Exchange Commission issued a public warning about the Ponzi scheme, but many investors simply ignored this after being told by the company that they would be paid on time.
The scheme is named after Charles Ponzi, who became notorious for using the technique in 1920. His operation took in so much money that it was the first to become known throughout the United States. Ponzi’s original scheme was based on the arbitrage of international reply coupons for postage stamps; however, he soon diverted investors’ money to make payments to earlier investors and himself.
It was also the same scheme that American stock broker and investment advisor Bernard Lawrence Madoff – who was arrested in December 2008 – used to lure thousands of clients to invest in his scam. As much as $65 million dollars were believed lost to Madoff’s scam. (Mindanao Examiner)
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