Filipinos warned against pyramiding

The Philippine Consulate General released Friday an advisory that seeks to warn Filipinos in the Northern Marianas against alleged illegal money-making schemes widely known as pyramiding.

The alleged fund-generating scam has reportedly victimized a significant number of Overseas Filipino Workers in the CNMI.The alert came in light of the Philippine Department of Trade and Industry’s pending investigations on two companies that could face sanctions for violating securities and trades laws.

The two firms identified as Power Homes Unlimited Corporation and Prosperity.com (said to be linked with Prosperity Mansions, also known as Golconda Ventures) allegedly lure clients for investment opportunities with the companies, with the promise that it would translate to a lump sum profit for the investors.

Consul General Julia Heidemann underscored the need to step up island-wide educational efforts against the alleged fraudulent investment practices, citing recent reports that many OFWs have fallen prey to scams of such nature, especially through the Internet.

According to reports, the Philippine Securities and Exchange Commission has issued cease-and-desist orders against the two companies in connection with their alleged involvement in illegally recruiting investors without acquiring permit from the commission.

Based on initial investigations, SEC learned that Prosperity.com invites investors who must first pay a certain amount and recruit at least two others to profit from their investment.

But the commission noted that the company registered business to sell computer and software services, yet it required investors to pay a membership fee of $234 to $294. The amount reportedly entitles the investor to a 15 MB website, a prosperity coupon worth $2,700 and a redemption coupon of $92 upon recruitment of two others.

Meanwhile, Power Homes obtained a business license to operate as real estate development property. However, its company brochure describes the business group as a firm that promotes and facilitates the sale of real estate property through leverage marketing.

Power Homes requires an investor to become a Business Center Owner by paying an enrollment fee of $234. The client is then asked to recruit two other investors for whom he or she would receive $92 in commissions.