Man involved in multi-million peso 'Ponzi scam' nabbed in Davao

MANILA, Philippines - Police have arrested a member of a firm involved in a "Ponzi scheme" in an operation in Daval del Sur, last week.

The police's Criminal Investigation and Detection Group (CIDG) in Eastern Mindanao said Reynaldo Lu was arrested operatives last May 9 at Km. 71, Barangay Sinawilan in Matanao town.

Lu, who was arrested afer a month-long surveillance operation, is connected with the Minerva company, which is allegedly involved in a P200-million scam.

CIDG chief Benjamin Magalong said Lu has been hiding in Davao del Sur to avoid the policemen who have been hunting him down.

Magalong said the hunt against Lu was launched after the businessman Khamal Panambulan, a businessman from Greenhills in San Juan City, filed a complaint against him.

Panambulan claimed that Lu duped him into investing P50 million to the Minerva company in 2012.

Magalong said that the company started its illegal operation almost the same time as the Aman Futures Group Philippines.

Both groups entice victims into investing into their company by promising unbelievable revenue returns. The groups would initially give money to the would-be victims to lure them into giving out more money.

Magaling, meanwhile, said that aside from being involved in the financial scam, Lu is also facing an arrest warrant for an auto theft case.