2 Owners Of Satarah Wellness Marketing Arrested In A Resort In Pangasinan

Two of the owners of Satarah Wellness Marketing were arrested by operatives of the National Bureau of Investigation (NBI) in a resort in Anda, Pangasinan. Satarah Wellness Marketing is a marketing firm based in Baguio City that is linked to an investment scam operation that allegedly divested millions of pesos from its victims. The arrested suspects who are also sisters were identified as Romyllie Batolne Lau and Ruby Batolne. Romyllie is the wife of Wing Pan Henrich Lau who is the main suspect in the scam operation. However, the authorities fear that Henrich Lau may have already fled the country.

After their arrest in Anda, Pangasinan, the two suspects were immediately brought to the NBI office in Baguio City. They will be facing syndicated estafa charges. According to the NBI, the company convinced people to invest in their business by offering high returns in short periods of time. The company allegedly promised up to 26% interest on new investments. One complainant said that for a a certain amount, his/her investment would earn 30% interest in just two months.

It can be recalled that syndicated estafa charges were filed against Romyllie Batolne Lau, Claire Batolne, Henrich Lau, Michael Chayag Keryao, Ruby Batolne, Brigitte Batolne, Charles Batolne, and Ruben Dulay Jr. in October of last year. Ruben Dulay Jr. and Brigitte Batolne were arrested by NBI operatives last February in La Trinidad, Benguet.

Rural Bank of Buguias Among The Victims Of The Scam?

The Rural Bank of Buguias was shut down by the Bangko Sentral ng Pilipinas through its Monetary Board and was taken over by the Philippine Deposit Insurance Corporation (PDIC) in October last year. It turns out that the bank was also an investor in Satarah Wellness Marketing. The bank reportedly invested about 150 million pesos in the company.

Screencapture of a news report by GMA News on the arrest of the two suspects.

News reports on the arrest of the two:
1) Abs-Cbn News TV Patrol Northern Luzon
2) GMA News Unang Balita

Securities and Exchange Commission Advisory on Satarah Wellness Marketing

In an advisory dated March 26, 2015, the Securities and Exchange Commission warned the public about investing in Satarah Wellness Marketing and its affiliates. Below is the contents of the advisory in full:

"The Securities and Exchange Commission has received reports that Satarah Wellness Marketing based in Baguio City solicit funds from the public on a promise of interests ranging from 4% to 26% "depending on the market rates", as well as from referrals of new investors, with referral rates ranging from 4% to 12% of the placement fees of new investors.

Per verification, Satarah Wellness Marketing and its affiliates, Satarah Wellness International and Satarah Investment Group, Inc. are not authorized to solicit investments from the public as it did not secure prior registration and/or license or permit to solicit investments from the Commission as required under Section 8.1 of the Securities Regulation Code.

In view thereof, the public is hereby advised to exercise self-restraint from investing their money into such high yield-high risk investment scheme and to take the necessary precautions in dealing with the above-mentioned entity.

Should you have any information regarding the operation of the said entity, please call the Enforcement and Investor Protection Department at telephone numbers (02) 584-7187 and (02) 584-7652 or at SEC Baguio City Extension office at telephone numbers (074) 442-8170 and (074) 442-8171."

Rural Bank Of Buguias (Benguet) Inc. Ordered To Be Closed By The Bangko Sentral Ng Pilipinas (BSP)

If you are a depositor in any of the six branches of the Rural Bank of Buguias (Benguet), Inc., be informed that the bank has been shut down by the Bangko Sentral ng Pilipinas (BSP) through its Monetary Board. The seven-member Monetary Board is given the responsibility of exercising the powers and functions of the BSP. With that said, the Rural Bank of Buguias is now under the receivership of the Philippine Deposit Insurance Corporation (PDIC). The takeover is an enforcement of MB No. 1704 dated October 22, 2015. The PDIC took over the bank on October 26, 2015.

The bank's main office is located in Abatan, Buguias, Benguet. It has five branches located in Cervantes, Ilocos Sur; Kabayan, Benguet; La Trinidad, Benguet; Bauko, Mt. Province; and Tadian, Mt. Province. Based on the latest available data, the bank has 16,244 accounts with total deposit liabilities of 347.4 million pesos. 87.2% (303.1 million pesos) of these deposits are insured.

With the takeover, the PDIC will have to gather, verify, and validate all bank records. The state-run corporation said that "all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.00". If you are a depositor in the bank, take note of the phrase "valid deposits". This is why you should start updating your records.

Photo by The Cordilleran Sun

Here are a few things you should know (Source: PDIC website): 

1) Depositors with valid deposit accounts with balances of P100,000.00 and below shall be eligible for early payment and need not file deposit insurance claims, except when they have outstanding obligations with Rural Bank of Buguias or acted as co-makers of these obligations.

2) Depositors have to ensure that they have complete and updated addresses with the bank. PDIC targets to start mailing payments to these depositors at their addresses recorded in the bank by the second week of November 2015.

3) Depositors may update their addresses until November 5, 2015 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises.

4) For depositors that are required to file deposit insurance claims, the PDIC targets to start claims settlement operations for these accounts by the third week of November 2015.

5) The PDIC also announced that it will conduct a Depositors-Borrowers Forum from November 6-9, 2015. It enjoins all depositors to attend the Forum to verify with PDIC representatives if they are eligible for early payment. Those not eligible will be informed of the requirements and procedures for filing deposit insurance claims. The time and venue of the Forum will be posted in the bank's Head Office and in the premises of its branches, and announced in the PDIC website, www.pdic.gov.ph. Likewise, the schedule of the claims settlement operations, as well as the requirements and procedures for filing claims will be announced through notices to be posted in the bank premises, other public places and the PDIC website.

2 Suspects Accused Of Scamming Away 140 Million Pesos From Cordillerans Arrested In Baguio City

Two people who allegedly carted away over 140 million pesos from Cordillerans through a Ponzi investment scheme were arrested last Thursday (September 17) in Baguio City by detectives belonging to the Criminal Investigation and Detection Group - North Central Luzon (CIDG-NCL). The two suspects were identified as Villamor Balawag and Genevieve Gantas. Prior to his arrest, Balawag was the 5th most wanted person in the whole province of Benguet.

Balawag was reportedly the manager of PC Wellness, a company with an office that used to be located at the Pettersen Building along Kilometer 4 in La Trinidad, Benguet. Gantas was an employee of the company. CIDG operatives swooped in to take the two into custody after Judge Danilo Camacho issued warrants of arrest for syndicated estafa against the two suspects.

Balawag's investment scheme reportedly divested over 140 million pesos from 130 Cordillerans. Balawag allegedly promised the investors at least 35% interest on the money they push into his company. The company closed in March of this year, just six months after it was established.

For people who aren't familiar with the way a Ponzi scheme works, here's a short overview courtesy of the U.S. Securities and Exchange Commission:
"A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors to create the false appearance that investors are profiting from a legitimate business."

Ukay-Ukay Worth 22 Million Pesos In Baguio City Seized By The Bureau Of Customs

The ukay-ukay industry in Baguio City received a hard wallop in the gut last September 2 when the Bureau of Customs seized nearly 2,800 bales of used clothes, comforters and other garments from nine separate warehouses in the city. Most of these are apparel from Canada and the United States. According to a statement released by the BOC, the seized bales may have entered the country via locators at the Subic and Clark Freeport zones or via the Cavite Export Processing Zone in Rosario, Cavite. The total worth of the items seized is estimated to be about 22 million pesos.

An investigation conducted by the Intelligence Group of the BOC found out that some locators inside Subic and Rosario are using a privilege given to them as a front to import used clothing. The importation of used clothing in the Philippines for commercial purposes is prohibited under Philippine laws. To get around these laws, some locators disguise the used clothing they smuggle as scrap fabric. Disguising the items as scrap fabric allows the locators to bring these into the country without paying taxes and duties.

The BOC statement also noted that the proliferation of ukay-ukay business has significantly hurt the local garments and clothing industry. Read the full BOC statement here. Below are photos from the operation which led to the seizure of the 2,800 bales of used clothing. All photos courtesy of the BOC.

A Conference Of Baguio Bloggers Where You Can Learn How To Tap Into The Power Of Blogging

Ever wanted to start your own blog but you are confused as to how you can get your foot through the door? Then this blog conference is for you. It's free and it's happening next Saturday (July 26) at the Granary Academy and Assessment Center at the Resurrection Church Compound along Magsaysay Avenue in Baguio City. It's a one day event starting at 8:30 in the morning and ending at 4:30 in the afternoon.

The lineup of speakers consists of seven Baguio-based bloggers. The keynote speaker will be Vincent Tabor of Lakbay Baguio (http://lakbaybaguio.com/). The other speakers are:

1) Clayre Chaokas II (http://shuttercaptured.com/) on blog basics

2) Carl Taawan (http://www.baguiosmile.com/) on photo blogging and photo journalism

3) Ane Fallarme (http://www.diaryofane.com/) on Fashion and beauty blogging

4) Christian Lizardo Aligo (http://www.christianlizardoaligo.com/) on political and satirical blogging

5) Jag Fernando (http://www.accessoryholics.com/) on blogging your business

6) Dean Cuanso (http://watwatworld.com/) on business blogging and online marketing 101

This conference will be the third installment of its kind. The first Baguio blog conference was held in 2012 followed by another one in 2013. For next week's conference, follow this link to register.