MANILA, Philippines — The National Bureau of Investigation is investigating a paluwagan scam in Pasig City that allegedly defrauded several people of nearly P1 billion, an NBI official said on Monday.
At least 50 people have officially filed complaints against BNY PAL, also known as “Benta Paluwagan,” and its owner, Rohani Velasco, NBI-National Capital Region assistant regional director Joel Tuvera said.
The firm allegedly failed to turn over cash dividends it promised to its investors since December.
“Possible estafa cases will be filed against the subject and her cohorts,” Tuvera said in Filipino.
He added that a hold departure order would be issued as the complainants said Velasco was not responding to their calls.
The complainants alleged that BNY PAL required members to pay for slots in a rotating credit and savings association.
The promised returns were up to 40 percent of their investment, with the ability to buy or sell their slots in the payout schedule.
At a press briefing, Pasig City Mayor Vico Sotto said that BNY PAL, despite being a registered wholesale trading company in Pasig, lacked authorization for investment and lending businesses. He compared the firm’s operation to a pyramid scheme.
The NBI said that it plans to release its initial findings in two weeks.
Sotto advised the public to check Securities and Exchange Commission records before investing in any firm and to be wary if returns seem “too good to be true.”
One of the complainants, who claimed to be a friend of Velasco, said problems arose after she reportedly spent the invested money on luxury items, ABS-CBN reported.
The complainant said she was taken by surprise when Velasco declared that the money was frozen by the Anti-Money Laundering Council.
A Pasig City councilor admitted to investing P3 million in BNY PAL, according to ABS-CBN.