Showbiz couple embroiled in 'pyramid scam'

Manila: A popular showbiz couple are among the victims of an online investment scam that has fooled thousands of local and foreign investors.

Actress Claudine Baretto and her husband, actor Raymart Santiago, said they had no idea the venture opportunity offered by online firm Francswiss Investment (FS Investment) was a "pyramiding scam". The couple were dragged into the controversy in the wake of investigations conducted by the National Bureau of Investigation (NBI) after investors complained the firm had duped them of money.

FS Investment had been enticing investors to join a $1,000 (Dh3,673) venture capital with their firm, promising a $45 (Dh165) daily yield on initial investment.

"Like most investment opportunities that sounds too good to be true, the venture turned out to be a scam, and investors who put in their savings were left with nothing" said NBI Director Nestor Mantaring.

Several other local showbiz personalities and big-league basketball players are being investigated by the NBI.

Last Wednesday, police arrested five individuals at a hotel in suburban Quezon City alleged to have ties with FS Investment.

The suspects were identified as Edwin Acena, Jeslie Tagle, Jonmayn Jayma, Rodolfo Maquiling and Angie Angeles.

The alleged chief financial officer of FS Investment, Eleazard Castillo, was arrested in Baguio City on July 4. Mantaring said the NBI had already alerted Interpol on FS Investment's activities.

He said an alert had been issued for the capture of Roger Smith, an American national, who is thought to head FS Investment in the Asia Pacific region, and for two Singaporeans, Raymond Chua and Bensy Fong.

Illegal business

According to NBI Senior Agent Manny Fayre, FS Investment is doing business in the Philippines illegally because it is not registered with the Securities and Exchange Commission.

Fayre said FS Investment is an international internet pyramiding syndicate which has duped investors of some P1 billion (Dh80.2 million).

"Pyramiding" is defined as a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered.