Shameless scammers

The conviction of Charlie Javice, described by The Guardian as the charismatic founder of a startup company that claimed to be revolutionizing the way college students apply for financial aid, should be a cautionary tale for Philippine startups and scammers in general who try to defraud the public of their hard-earned money.

Javice, according to The Guardian, was convicted on Friday of defrauding JPMorgan Chase, one of the largest banks in the US, “out of $175 million by exaggerating her customer base by 10 times.”

JP Morgan bought the company but later found out that Javice had lied about the number of customers.

Javice, says The Guardian article, was in her mid-20s when she founded Frank, a company with software that promised to simplify the process of filling out a complex government form used by students to apply for financial aid for college or graduate school.

She once appeared on Forbes’ “30 Under 30” list before JPMorgan bought the startup in 2021, just like Elizabeth Holmes, who was also on the list before she was convicted in 2022 of defrauding investors in the blood-testing company Theranos.

Our National Bureau of Investigation, Securities and Exchange Commission and other local authorities must step up efforts against fraudsters who continue to perpetrate scams.

In the US, there have actually been convictions as we’ve seen with Javice and Holmes. We should see more convictions, too, here in the Philippines.

Tycoons fall prey to deep fakes

Even some of the country’s tycoons have fallen victim to AI-assisted deep fakes.

International Container Terminal Services Inc. has recently warned the public about online scams using manipulated videos and audio recordings to impersonate its chairman Enrique Razon Jr. and other senior executives.

“The fraudulent materials, which have appeared on social media, falsely portray Mr. Razon promoting investment opportunities. These claims are entirely untrue. Neither Mr. Razon nor ICTSI has endorsed any such investments,” ICTSI said.

San Miguel Corp. chairman and CEO Ramon Ang issued a similar warning.

“I am not endorsing any investment schemes. I do not promote, support or take part in any kind of online investment offer,” he said.

Prior to this recent wave of scams, tycoons Lance Gokongwei and Manny Villar were also used by fraudsters as supposed endorsers for investment scams.

Many have fallen victim to these scams, losing their hard-earned money in the process.

The NBI must work with social media platforms including Facebook, X, Instagram and YouTube to remove or ban such content and similar ads from the internet.

The public must also be very cautious in consuming online content. They must verify information through official channels of companies and avoid giving out personal information.

And always remember – if it’s too good to be true, then it’s probably a scam.

‘Crisis PR guru’ becomes the crisis

Speaking of helpless individuals who have lost their hard-earned money, some businesses – big and small – are hurting because of their dealings with a marketing/public relations (PR) consultant who has failed to fulfill her obligations to them.

This PR executive and her unpaid pile of debts have been a hot topic in the corporate industry and the PR grapevine for some time now.

Sources said the executive, through her PR firm, owes money to clients, suppliers, freelance workers and writers whose services she engaged. The PR firm also allegedly owes unpaid employee benefits.

We’re not talking about a few thousand pesos here but a considerable sum – as in several millions of pesos.

This is surprising for someone who has been in the industry for years. She has previously been recognized by different organizations and has been tapped as a speaker at many events, including digital conferences.

She presents herself as an expert and an authority in PR – one description says “brand architect” – which is why the hapless businesses and suppliers she worked with didn’t expect her to default on her financial obligations to them.

Last year, a big company tapped her to organize an event.

She was given a budget. However, the business partners she tapped were dumbfounded when they weren’t paid, even for some of the contracts priced at less than P100,000.

Even her employees have reportedly left the company because they didn’t receive the benefits due them. It is not clear if the firm still operates or has rebranded.

There are many other horror stories.

This is all ironic especially because her firm supposedly specializes in crisis and reputation strategy.

What happens next remains to be seen.

I hope that for the sake of entrepreneurs, including those with micro and small enterprises, who are just trying to do honest business, she pays up.

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Email: eyesgonzales@gmail.com. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.