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Monday, April 07, 2003
Investors complain v. triple-fund scam
By Minerva B. Gerodias
CEBU -- Investors of E-Fund Capital Management Inc., a foreign investment house, asked for help from the police after the investment house’s website where they do their transactions shut down since March 26 this year.
Rod Alvarez, an investor and agent who is now one of the complainants, said since the website is off, all their assets, including interest earnings, cannot be withdrawn.
The fund’s office at room 233 of Raintree Mall along F. Ramos St. has also been closed and the owner, a Malaysian national, can no longer be located.
The owner’s name is being withheld until Sun.Star reaches him for his explanation.
According to Alvarez, there are at least 15 of them in Cebu who decided to join hands and report the matter to the police. But nationwide, they have at least 8,000 investors.
Another web site, www.efundnet.biz, owned by one of the investors, reported that the Malaysian owner has fled, with an estimated P500 million stashed away.
The complainants first went to T. Padilla Police Station, but since the case involves a large amount, they were referred to the Criminal Investigation and Detection Group (CIDG) 7.
How it works
Alvarez explained that E-Fund, which started its business in Cebu on April 23 last year, gets US$100 or its peso equivalent as capital for one unit.
For every US$100 investment, E-Fund assures a calculated fixed annual return of $300, but the initial US $100 investment cannot be withdrawn from the company.
Alvarez said investors were promised that their money will be invested in the Unites States so it will grow.
Once one has given his capital, he will get an account that can be accessed through the Internet, at www.efund.bz.
In the first four months, Alvarez explained, the investor gets 100 percent interest for his investment. On the fifth month, there will be no interest earned, but this is the time investors have the chance to withdraw interest earnings so far.
On the sixth to the eighth month, another 100 percent interest will be earned, but with none during the ninth. On the 10th month to the 12th, the investor earns another 100 percent interest.
Alvarez said the investors can withdraw their interest earnings by transferring these online to a personal account.
Who lost
Other investors got their interest earnings, but those who opted to invest more, using the interest to buy more units, were the ones who lost more when the web page shut down.
The web site remained down Sunday night.
Alvarez said the Malaysian owner used other “networkers” to convince people to invest in his company.
In October last year, stories about E-Fund landed in the local dailies when it was learned that it was not authorized by the Securities and Exchange Commission (SEC) to operate in Cebu, as it was neither registered nor licensed.
Ver Vallecera, one of the company’s agents, had explained they did not need SEC registration since their operation is only through the Internet and they don’t have a branch in the Philippines.
But SEC Company Registration and Monitoring Department Director Benito Cataran said that although they operate through the Internet, the fact that there are Cebuano investors means that E-Fund is already doing business here and therefore needs licenses.
Despite their lack of licenses, the company apparently continued to operate, until investors started complaining yesterday. Sun.Star Cebu
(April 7, 2003 issue)
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