Police, soldiers by pyramid scam

The Philippines law enforcement officials found they have become victims of a scam after a group of investors arrived at the offices of two investment establishments to demand their money back.

Zeny Rufon, spokesperson of the investors, said she had lost P17 million ($340,000) from her investment in the ICS Exports and Glasgow Credit Services, both of which operate a 'pyramiding' business inside the police headquarters of Camp Crame in Manila's suburb of Quezon City.

Rufon's group has filed 3,000 accounts of fraud, representing the number of complaining investors against Glasgow before the Securities and Exchange Commission last Friday.

They have also urged immigration authorities to issue 'hold departure orders' against Glasgow management. The pyramiding racket came to light a few days ago, when irate soldiers and policemen went to the offices of the ICS Export and Glasgow Credit Service, demanding their money.

Emilia Sison, owner of the ICS, reportedly used the name of President Gloria Macapagal-Arroyo to lure investors. The ICS offers 7-8 per cent return of investment in one month, while Glasgow offers 15 per cent. Through its official bulletin, the ICS announced late last year that Arroyo would attend the agency's investors gathering, supposedly scheduled in January.

But Rufon said no such gathering was held. Some of the investors included top police officials and military generals, who were represented by their wives or kins as listed investors in the pyramiding scam. In pyramiding, investment firms lure investors with the promise of high returns.