Davao folk warned vs investment scams

DAVAO CITY (MindaNews/28 May) – Reelected Davao City 2nd district Councilor Danilo Dayanghirang warned Dabawenyos against falling prey to various fraudulent investment schemes that promise huge profits to investors.

“That should be stopped. I am really alarmed because one of my neighbors in my province was calling his son to send money so he can invest in Kapa. It’s very dangerous. I urge people of Davao to stop it, because very soon once this collapses all of you will get sorrow,” he said during a press briefing on Monday.

Dayanghirang was referring to Kapa Community Ministry International Inc., which allegedly lures people into investing money by promising two-digit dividends.

He advised residents not to gamble their money in Ponzi-like investment schemes as they only benefit the first few investors while those who invest later will not get anything in return.

He urged the Securities and Exchange Commission (SEC) to take action against such schemes.

He said there is no need to take this matter to the city council as Mayor Sara Duterte had warned the public against investing in Ponzi schemes.

The mayor had earlier dismissed rumors that she was involved in the activities of Kapa.

On May 24, the SEC warned the public to exercise caution in investing their money in Rigen and in other similar investment schemes involving the sale of unregistered securities.

It also warned that anyone caught as a salesman, broker or agent of Rigen in selling or convincing people to invest in the investment scheme being offered, including solicitations or recruitment may likewise be prosecuted and held criminally liable and penalized with a maximum fine of P5 million or imprisonment of 21 years.

In a decision last April 3, the SEC revoked the certificate of corporation registration of Kapa, which was found collecting investments from the public in the guise of “donations” even if it was not a registered issuer of any securities and not licensed to offer or sell securities to the public.

According to SEC, the Securities Regulation Code requires that the “issuing person and/or entity must be registered corporation with SEC, the said securities offered are duly registered and that the appropriate license and/or permit to sell securities to the public are issued to the corporation and/or its agents.” (Antonio L. Colina IV/MindaNews)