MANILA — The National Bureau of Investigation (NBI) on Monday said it is in the process of investigating a “paluwagan” scheme in Pasig City that allegedly defrauded several individuals which invested nearly a billion pesos into the illegal racket.

At least 50 people have formally lodged complaints against BNY PAL, also known as “Benta Paluwagan” and its owner Rohani Velasco, after the company failed to remit promised cash dividends to its investors since December, said Joel Tuvera, assistant regional director of the NBI in the National Capital Region.

“Possible estafa cases will be filed against the subject and her cohorts,” he said.

“Hold departure order, puwede natin maimanifest yan sa court,” he added, noting that several complainants said that Velasco has stopped responding to their messages.

Based on the complaints lodged against BNY PAL, members will have to pay for slots to be a part of a “paluwagan” or a rotating credit and savings association. They will then take turns in receiving portions of the pooled funds based on an agreed schedule.

Members were promised to earn as much as 40 percent of their investment, and they can also sell or buy their slots from the rotating pay-out schedule.

“Criz”, one of the complainants who introduced herself as a long-time friend of Velasco, said that all went well in the beginning, but problems started to arise after Velasco allegedly spent the pooled funds for personal luxuries.

“Finiflex niya sa Facebook na bili ng ganito, bili ng ganiyan, biglang boom,” Criz told reporters.

“Nagulat na lang kami na biglang dineclare niya na na-AMLAC yung pera,” she said, referring to the Anti-Money Laundering Council, which has the power to flag and hold suspicious transactions and accounts in the country.

A Pasig City councilor, who spoke on the condition of anonymity, admitted to investing P3 million pesos in BNY PAL.

The official declined to give further comments, saying that their camp is in the process of filing a case against BNY PAL.

While BNY PAL is a registered wholesale trading company in Pasig, it does not have the authority to conduct businesses linked to investments and lending, Pasig City Mayor Vico Sotto said in a press conference.

“Hindi po sila authorized. Naglabas na po ng Securities and Exchange Commission ng advisory na wala silang permit or any authorization for any lending or investment business,” the mayor said.

“Malinaw na malinaw na sa umpisa pa lang ay illegal na ang kanilang ginagawa,” he said, noting that the company has been operating “similar to a pyramid scheme.”

While the NBI has received around 50 official complaints, hundreds of other victims of the scheme have been asking the Pasig local government for help, Sotto said.

“Mahina ang libong biktima dito at siguradong hindi lang P1-2 bilyon yung naipasok,” he said.

In a statement, BNY PAL’s legal representative said that the company has “developed a comprehensive restructuring plan… to fulfill all our obligations to all stakeholders.”

Included in the said plan is the “identification of outstanding liabilities,” the “streamlining of internal processes and identifying areas for improved efficiency and cash flow.”

“We are exploring exciting new business opportunities and partnerships to diversify our income,” the statement read.

“We will regularly update you on our progress through our social media page,” it said.

“We urge our loyal members to refrain from entertaining any rumors that my client is trying to evade its responsibility.”

The NBI said it will release the initial findings of its investigation in two weeks.

Meanwhile, authorities reminded the public to take extra precaution before investing in any scheme.

There is already a red flag if the rate of return is “too good to be true,” Sotto said.

The public should also check SEC records first before entrusting their money to any company, he said.

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