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BE WARY AS MORE SCAMS COME
The Philippine Star With the slowing US economy affecting the value of the dollar versus most regional currencies, however, our overseas Filipinos have been finding it more difficult to save up for this dream. The strengthening of the local currency has meant that the dollar is worth fewer pesos. With prices of basic commodities on the upswing, the peso also buys a smaller quantity of goods. Saving money for that house and lot has therefore become more difficult. Compounding the situation is the growing number of scams in the real estate pre-selling business. And they come in all shapes and sizes. With the real estate business booming, the industry is ever keen on cashing in on many Filipino families' improved financial status arising from those overseas jobs. So are those shameless con artists posing as real estate agents. Oftentimes, these unscrupulous individuals are able to dupe their victims into believing they are legitimate representatives of accredited real estate firms. Their modus operandi may take on a myriad of styles, but in the end, the hapless buyer ends up without his money and with no land title. Fly-by-night firms There is also the fly-by-night real estate company that will sell dreams of a future model housing community complete with cement-paved roads, electricity and water supply, concrete sidewalks, a park and even a community clubhouse. After the last amortization is paid, the duped investor realizes that – and usually with his likewise gullible “neighbors” – the piece of property acquired is almost inaccessible and offers no basic utilities for decent habitable living. Not surprisingly, getting back the money paid for broken promises will be almost impossible. Securing legal sanctions for such misdeeds, especially on those real estate firms that have pleaded insolvency, could be more difficult and costly. Government, and even established and legitimate real estate brokers, will always say that the best way to avoid falling for such expensive pitfalls is to stick to the big boys – real estate firms that have track record, and are backed by a reputable board. Greedy big boys And yet, this route is not 100 percent foolproof, as a few of those who have been burned can attest to. The complaining new owner of an expensive farm lot or condominium unit will need to be ready to do battle against a battery of corporate lawyers, many of them experts at exploiting the loopholes and weaknesses in the judicial system on land and property court cases. An individual who has been wronged may win the decision, but the years of waiting plus the aggravation of building the case and taking it through the many judiciary levels can dull any sweetness from victory. Unlike investment scams (which I have written about in past columns as a function of greed on the part of the investor), victims in real estate stings or rip-offs did not aspire to earn scandalous returns, i.e., 5 percent a month on their money. If there is anyone to blame for his sad experience, it is the existing system – administrative and legal – that does not adequately protect him from thieving individuals or companies and worse, does not provide for quick resolution of conflicts and misdeeds. As more of our overseas Filipinos improve their income levels, the market for real estate will continue to be brisk. And more scoundrels will be around to feast on the hapless – unless more stringent measures are adopted by government. The big question now is when these measures will be put in place. Investment scam update In my last column on investment scams, we discussed the gullibility of many rich Filipinos who had fallen prey to the foreign exchange investment scheme of Performance Investments Products Corp., a company founded by a Singaporean, who promptly disappeared when earning commitments could not be met. With promised returns at a modest but guaranteed 12 percent per annum, the investment opportunity given by Performance could not be categorized outright as a scam. But there are others that definitely fall in the swindling category. The country has had a rich history of these types dating as far as the 70s that had promised as much as 20 percent interest on investments a month. Remember Agrix, a pyramiding scheme that offered 60 percent a year (or 5 percent a month)? So many professors and university personnel in Los Banos lost their lifetime savings. The latest is Royal Manchester Five Trading Corp., which promised returns from 3 percent to 10 percent a month depending on the length of time your money is parked in the company “investments” portfolion. Reports place losses at over P2 billion. Like Performance, the owner – a Chinese-Filipino businessman – is nowhere to be found. As the Reader's lament One of our readers, Mr. Ely L. Alba, wrote in lament on the unfortunate situation he and about seven hundred families are in. Part of his letter follows, “I am writing to know if you could help me in inquiring my investments with ASB Group of Companies …. For more than seven years now, I don't hear anything from said corporation.” Included in the letter of Alba were copies of checks stamped with “Payment Stopped.” And he alleges that these were supposed to be payments for investments he and his group made with said company. My immediate advice to him, and this holds true for many others who feel they were short-changed or are suspecting some kind of “scam,” is to sit down with a trusted lawyer and take legal action as quickly as possible. If one dilly dallies, the perpetrators may be able to get off the hook as our judicial system grinds its slow wheels. Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center,
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