NBI seeks death penalty for pyramid scammers

The National Bureau of Investigation (NBI) wants the death penalty imposed on those involved in pyramid scams, considering the number of people who have been victimized by the scheme.

"Considering that some victims have committed suicide, perhaps we could seek the death penalty for people with major involvement in these shady and get-rich-quick deals," said NBI Director Reynaldo Wycoco.

He said that while the plunder law metes the death penalty for P50 million, the "pyramid scam is worth billions, so logically they should be meted the death penalty."

The NBI chief noted that the present law on estafa — under which the pyramid scheme is classified — provides a penalty of only P200,000, a paltry sum compared to billions of pesos they raked in.

At least 1.5 million to two million people have been victimized by pyramid scams, and the amount of money lost may have gone up to P120 billion. So far, Wycoco said that Multitel’s Rosario Baladjay allegedly accounted for P20 billion to P25 billion, Ervin and Evelyn Mateo’s Mateo Management Group (MMG) for another P20 billion to P25 billion and Jesus Tibayan’s Tibayan Group of Companies for P2 billion to P3 billion.

Charges against some suspected masterminds in the multi-billion peso pyramid scams have been filed in courts. The NBI is currently investigating 12 or 13 companies suspected of these "get-rich-quick" schemes, Wycoco said, but declined to name names.

Aside from Multitel, there are eight other companies facing cases of estafa, and violating the Securities and Exchange Regulations Code and the bouncing checks law. – With Jess Diaz, Eva Visperas