Fly-by-night forex shop caught shortchanging 2 Australians

MANILA, Philippines - An employee of an unregistered foreign currency exchange shop in Ermita, Manila was arrested over the weekend after she reportedly shortchanged two Australian tourists.

Ron Samarkovski, 42; and his friend Philip Williams, 57, sought police assistance Friday after they found that the A$2,400 they exchanged for pesos at the Starlet Money Changer was short by P100,000.

Acting on the complaint, police raided the shop and arrested cashier Rosemarie Paredes, 24. Two other employees escaped but were identified by Paredes as tellers Emilda Perez and Aida Cruz.

At her detention cell at the Manila Police District’s General Assignment Section (MPD-GAS), Paredes admitted being a new recruit of the “Kotong Gang” headed by “Malou,” which operates in Manila’s tourist belt area.

Paredes said the gang operates a number of clandestine money exchange shops in Ermita, which target mostly foreigners. However, she said the gang returns the shortchanged amount in case the victim complains, but most of them do not.

 She also said their operation is protected by some policemen, but she refused to name them.

GAS head Chief Inspector Marcelo Reyes said the city of Manila asked foreigners not to patronize money exchange shops without accreditation by the Bangko Sentral ng Pilipinas.

“The problem is most of the victims were lured by the higher exchange rate being offered by the gang,” Reyes told The STAR.