(UPDATED) -- Authorities raided 42 houses owned by lawyer and United States of America Freedom Fighters of the East (Usaffe) founder Elly Pamatong at 5 a.m., Thursday, August 31, in a compound in Purok 13, Tabucnai, Tablon Village, Cagayan de Oro City.
By virtue of 42 search warrants issued by a Regional Trial Court in Gingoog City, joint police and military operatives swooped down the houses in Pampatong's compound.
Chief Inspector Evan Viñas, Cugman police station chief, said Pamatong's compound has 42 houses, where his Usaffe soldiers also live.
From the 42 houses, five are owned by Pamatong and the other 37 were occupied by supposed members of Pamatong’s Freedom Fighters.
Viñas said seized from Pamatong's houses were two fragmentation grenade, a caliber 45 pistol with live ammos and several military and police uniforms and fake police identification cards.
He said no one was arrested after the targets were not sighted during the operation.
Police said they saw the Philippine flag invertedly placed when they arrived at the area.
"Nakita nato ang flag gibali ang pula sa taas blue sa ubos," Viñas said.
"Kita pud tag emblem kanang logo nga naay Sagisag ng Pangulo ng Pilipinas kung asa walay gitugotan mogamit gawas sa Presidente," he added.
Authorities believed that the operation may have leaked which compelled the group to flee prior to the police operation.
Viñas said they worry that the group may build paramilitary group to overthrow the present government.
"To overthrow the present government gayud ang purpose kay dili malilong nga nag-declare man siya sa iyang kaugalingon nga president," Vinas said.
Superintendent Melgar Devaras, deputy regional chief for CIDG-Northern Mindanao, said the Usaffe group have posed a certain level of threat in the community.
Devaras said several residents have reported and complained for fear for their lives.
"Armed group then kasi sila yung mga tao don nahaharas yung ang pakiramdam ng community," Devaras said.
Devaras added, "Para itong malawakang estafa o swindling sa kanyang mga tao kasi tulad ng pag-declare nila ng war against China pagma-recover daw nila ang mga isla na property ng Pilpinas babayaran daw niay ng pera yung mga members kaya yung mga nanniniwala sa kanya nagbibigay ng parti sa kanilang kita kay Pamatong."
A resident from nearby, who refused to be identified, said former Usaffe members who quit from the group said that they were made to pay P1,000 per month and another P100 weekly.
She said more villagers have despised the existence of the group in the area.
"Daghan diha nihawa sa grupo kay wala makauyon kay ginapabayran og P1,000 kada bulan ug P100 kada semana. Gahatag na sila og kasamok ug kahadlok sa mga tawo diri,"the resident said.
Authorities are set to charge Pamatong with illegal possession of firearms, bullets and explosives.
Police said the Usaffe group has about 200-300 members in the city. Few were arrested recently for wearing police uniforms.
Pamatong founded Usaffe in 2013 to fight communist insurgents and advocated for making the Philippines the 51st state of the United States.
He ran for president twice, in 2011 and 2014, and this year, Pamatong announced he had taken over "full-pledged powers of the presidency."