Criminal charges filed against Global InterGold ringleaders
Asia appears to be a hotbed of investor recruitment, with EmGoldex’s name-change to Global InterGold earlier this year leaving a slew of new victims likely clueless.
Despite having previously issued a warning against EmGoldex, investment fraud through Global InterGold continued.
This has now lead to Philippine SEC escalating regulatory efforts against the scheme.
In a November 6th press-release titled “SEC stops global EmGoldex scam”, the agency announced it has issued Global InterGold with a cease and desist.
SEC issued a Cease and Desist Order (CDO) yesterday, 5 November 2015, and today filed two (2) cases before the Department of Justice (DOJ) against related entities namely EmGoldex, Global Intergold (GIG) and Prosperous Infinite Philippines Holdings, Corp. (PIPHC) for violations of Section 8 and 28 of the Securities and Regulation Code (SRC) for selling or offering for sale or distribution unregistered securities to the public and without a license, respectively.
As per Global InterGold’s business model, the company sees affiliates invest 540 EUR on the promise of a 7000 EUR ROI. That ROI is funded by subsequent affiliate investment, making Global InterGold a Ponzi scheme.
EmGoldex before it ran the exact same fraudulent investment scheme.
The filing of the aforestated cases and the issuance of a CDO by the SEC are products of months of investigation, including the previous issuances of SEC Advisories and Disclaimers against EmGoldex.
With the help of the DILG, PNP, NBI and NICA, the SEC was able to gather evidence including affidavits of two (2) victims who are active PNP officials.
They have also recruited at least 95 investors. An estimated Php 2,718,400.00 cash investment has already been made by them with an estimated return loss of at least Php 11 Million.
One of the two PNP officials invested in EmGoldex in desperation after his house burned down early this year.
“PNP” for those unfamiliar with the acronym are the Philippine National Police, who are ‘the armed civilian national police force of the Philippines‘.
Per Asst. Dir. Lalaine Monserate of the SEC’s Enforcement and Investor Protection Department (EIPD), the said entities operate a classic Ponzi scheme of getting cash investments and giving high return payouts thru the recruitment of people.
As more people are recruited into the scheme, it eventually reaches a point wherein it can no longer sustain its payouts, and payments will stop thereby leaving investors penniless.
BehindMLM concluded as much in our own EmGoldex and Global InterGold reviews.
Originally, the entity which employed the Ponzi scheme was EmGoldex. However, in response to SEC’s Advisories warning investors against EmGoldex, the original entity renamed itself to GIG.
PIPHC was then incorporated sometime on August 2015 to aid and assist GIG investors who were unable to obtain a return on their investment.
Currently, EmGoldex is already banned in other countries based on international media reports.
One of the countries the Philippine SEC are referencing is likely the US.
Not quite a ban per say, the Massachusetts Securities Division filed a civil lawsuit against top US EmGoldex investors in October of 2014.
EmGoldex fraud in the US was just starting to take off around that time, with the SecDiv regulatory action effectively putting a halt to usch efforts.
Today there is little to no Global InterGold investor activity in the US.
Looking forward, apparently there was supposed to be some big Global InterGold rahrah event held tomorrow on the 8th.
The Commission also warns the public regarding the upcoming event scheduled by the said entities at the SMX Convention Center on Sunday, 8 November 2015, at 5:00pm wherein an estimated 2,000 people will be attending.
With the Aquino administration’s focus on anti-corruption initiatives, the SEC challenges the individual suspects namely Mr. Kevin Miranda, Mr. Ryan Manuit, Mr. Charles Juiz Padilla, Mr. Rabel Ymas, Mr. John Rafael Calicdan, and Mr. Paul
Alviar to face the public and take accountability for their actions.
Each violation of the SRC is punishable, upon conviction, with a fine of not more than Php 5 Million or imprisonment of 7-21 years, or both.
The event in question appears to be Global InterGold’s annual convention, held this year in Munich, Germany.
The Business Mirror are reporting criminal charges have been filed against the named suspects in the scheme:
THE Securities and Exchange Commission (SEC) on Thursday filed criminal charges against those behind another Ponzi scheme perpetrated by incorporators of Prosperous Infinite Philippine Holdings Corp. (PIPHC), which earlier used the names EmGoldex Philippines and Global Intergold (GIG) to sell and distribute unregistered securities to the public without a license.
Named respondents in the complaint were Kevin Miranda, Ryan Manuit, Charles Juiz Padilla, Rabel Ymas, John Rafael Calicdan and Paul Alviar.
Meanwhile the status of the named suspects is unclear. Ponzi par for the course sees ringleaders scatter when shit hits the fan, so I wouldn’t be surprised if they’ve gone into hiding and/or fled the country.
Global InterGold itself is based out of Europe, with developments in the Philippines unlikely to attract a response.
Hat tip to Patrick Pretty for spotting the these regulatory developments on Global InterGold first.
Update 8th November 2015 – Global InterGold have filed a response to the SEC’s criminal charges.
Update 1st December 2015 – Two cases of Syndicated Estafa (conspiracy to commit swindling) have now been filed against the accused. If convicted, they each face life imprisonment.