Duterte warns vs pre-need, pyramiding-A A +A
Sunday, March 17, 2013
DAVAO City Vice Mayor Rodrigo Duterte asked the National Bureau of Investigation (NBI) and Criminal Investigation and Detection Group (CIDG) to investigate and arrest those behind a pyramiding scam involving the sale of pre-need and insurance plans.
Duterte requested for the probe after the Securities and Exchange Commission (SEC) issued an advisory, warning the public to be alert against unauthorized sale of life insurance and memorial plans.
"They are going around committing estafa. Now, I am requesting the National Bureau of Investigation and the CIDG to investigate and arrest (people who are involve)," Duterte said in his television program "Gikan sa Masa, Para sa Masa" aired Sunday morning.
Duterte even jested to the public to stab those who are involved in any scam. "Sa kusina ninyo, pagkuhag mo'g kutsilyo unya dunggaba. Kung sakali habol ng kutsilyo ninyo, dili makadulot, adto na lang mo sa pulis o di ba kaya sa NBI (Get a knife from your kitchen and stab them. But if your knife is blunt, then just go to the police or NBI)."
Reports said the SEC has received information that a certain firm in Davao City is engaged in unauthorized sale to the public of insurance and pre-need plans, specifically life insurance and memorial plans, by means of a pyramiding scheme.
It was also said the scheme offers life insurance, memorial service and big income potential through membership by payment of the specific amount payable in five years, or inviting and adopting three persons to join the program.
In a separate public notice, the SEC said Davao-based Connectacons Inc. or Connect Gems is unauthorized to sell pre-need and life insurance.
"The public is warned not to invest in high-yield, high-risk investment--a promise that is too good to be true," SEC said, adding that before investing, the public should make sure that the company offering insurance is licensed to offer such products.
Published in the Sun.Star Davao newspaper on March 18, 2013.