Scheming scumbags

Some 13 years ago, a big-time scandal similar to what’s happening with Performance Investment Products Corp. (PIPC) rocked society and the financial community. Those familiar with “Bancap” would immediately recall Marilyn Nite — president of Bank Capital Development Corp. who victimized banks and investors by selling treasury bills several times over, with different individuals believing they were the owners of the same T-bill. The scam became so successful that Nite — who was aided in her operations by Nunelon Bradley and Vicky Magalona-Escalambre — got away with P2.5 billion (approximately $200 million). The hook was that the T-bills from Bancap would give 12 percent higher rates than those brought from other sources. The girls’ persuasive powers apparently got a lot of help from their so-called “feminine wiles,” showing a bit of flesh here and there to lure their targets.

Nite ran off with the money and hid in the United States, reportedly using a fake passport under the name of Marilyn Perez. At the time, the Philippines and the United States had just signed an extradition treaty, so when FBI agents caught her sometime in 1997, Nite became the first ever Philippine “extraditee.” The NBI report was very clear that Nite was involved in the scam, but the minute she arrived, she posted a P20,000 bail and up to now, the case is slowly going with postponements and all kinds of legal maneuverings. Nothing has been heard about Nite since. The Bancap scam was such a huge mess that a young banker — who could not believe how stupid he had been — even took his own life.

The slow resolution of such cases is probably one reason why scumbags continue to victimize people — who could not resist the promise of quick and huge returns on their money. Francswiss — that international Internet scam which promised a 4.5-percent daily interest on an initial investment of $1,000 — even capitalized on the names of popular celebrities to con people into investing approximately P1 billion. And now comes this Singaporean Michael Liew of PIPC whose main victims were the wealthy, running away with $250 million of investors’ money. NBI director Nestor Mantaring is really going out of his way to catch Liew and the Francswiss people, but even if they catch these people, nothing seems to be done to punish these criminals and make an example of them.

All these scams have the same kind of modus operandi that applies the pyramiding scheme one way or another. One of the worst ever was Multitel and Rose Baladjay. This woman really went after teachers, soldiers, police corporals, housewives, retirees — all those small people. She was caught in 2003 and she’s supposed to be in jail, but they say she’s actually living like a queen with even her manicurista going in to service her in jail. The sad part about these scams — from Bancap to Francswiss to PIPC to Multitel — is that it’s not only the moneyed who get victimized but worse, the small, honest people who put all their hard-earned money into the hands of these scumbags. This is where the real crime is — a person’s whole life savings lost to these criminals. Government has to do something to make these criminals pay up, because from what I hear, people who lost their entire savings are ready to take the law into their own hands. Some are planning to go after the relatives of PIPC head Michael Liew and the Francswiss guys, perhaps through a “kidnap-for-ransom” scheme to get back their money from these scumbags.

Insurance industry getting messier

Once again there’s another change in the Insurance Commission and this time, the present commissioner Vangie Escobillo seems to be the latest casualty, who sources disclosed, is being replaced by former Insurance Commissioner Eduardo Malinis. (Some say that he allegedly does not live up to his name.)

The insurance industry in this country leaves a lot to be desired. There are a number of fly-by-night companies victimizing people, most of them undercapitalized. Much-needed reforms are obviously necessary to weed out all of these fly-by-night companies. But apparently, some Congressmen (or woman?) are using threats — from impeachment to turn-coatism — to put pressure once again on the present occupant of Malacañang to replace Escobillo as the head of the Insurance Commission.

Ben Santos tried to clean it up the industry during his tenure by introducing a number of reforms, and he would have done a great job, having the balls to go after problematic firms. But unfortunately — he stepped on some Congressional toes. It looks like the same thing is happening with Escobillo, who recently closed down some delinquent insurance companies.

It’s really unfortunate that people who try to do good in this country either die young or get removed from their position. What’s happening in the insurance industry is just another sad example of “transactional politics” taking place.

Many of our Jesuit friends who call themselves “people of conscience” are backing up Escobillo to be retained as the insurance commissioner — something that a La Sallite like Philamlife’s Joey Cuisia seems to agree with.

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