Some 2,000 investors in Northern Mindanao ‘scammed’

December 13, 2008

Philippine Countryside Rural Bank (PCRB) of Agora road this city declares a bank holiday last December 9, 2008..leaving no bank staff or any personnel from the PCRB to accommodate the bank depositors who wanted to inquire regarding the status of the bank specialy there deposits . Its mother company, the Legacy a pre-need company has advised all investors to hold their post dated checks for further advice and even some other checks has already bounced for the reason of account closed according to the investors- photo and caption by Dante Sudaria

By Lizanilla J. Amarga

A nationwide firm which has convinced some 2,000 local investors in the Northern Mindanao area to pour in a total amount of around P100 million in time deposits has closed its banks in Cagayan de Oro city and Camiguin Island , complaining investors disclosed yesterday.

The investors include Rey Salon, Pelagio Estrada, Rosaline Abalde, Jose Warlito Nain, Cecille Rapene, Wendell Dicmal, Henry Cabaan, Leni Cagaanan, Erlinda Tadeo, Erlinda Lazarte, Jaime Aguilar, Lorna Orbe, Sagrada Seraspe, Henry Yu, Nilo Acebes, Lourdes Maturan and Aurea Aureque among others.

They explained that Legacy Group of Companies is actually engage in pre-need plans, banking with its 12 banks nationwide, credit cards such as the One Credit Card International, mutual funds and other affiliate businesses.

Under its pre-need investment program, they said they were convinced by Legacy’s Senior Vice-President for Marketing Edgar Cando and division head Rene Noble among others to pour in their hard-earned money with an assurance that this will double in amount within the span of three years with an advance of 20 percent per year until maturity.

Also, the investors added that they were assured that they can terminate their Certificates of Time Deposits at any given time with these Legacy banks provided that they pay the necessary bank charges and penalties.

They said they were given in advance post-dated bank checks that they can discount on a quarterly basis at the local Legacy’s bank – the Philippine Countryside Rural Bank (PCRB) in Agora, Cagayan de Oro City and its branch in Mambajao, Camiguin.

However, these investors were surprised when they found out yesterday that the PCRB-Agora has suddenly declared a bank holiday and would no longer discount their bank checks and time deposits.

They said other banks and rediscounting agents would also no longer accept the Legacy post-dated checks saying that such are “no-good checks.”

Rey Salon himself from San Luis, Gingoog City has invested P300,000 of his money with Legacy last June 17, 2008 presented documents and photocopies of several post-dated checks issued by Legacy in the amounts of P56,250,00 to be discounted in a quarterly basis.

A former top-level regional marketing agent here who requested anonymity for personal and legal reasons yesterday confirmed that indeed there are now some 2,000 investors in the entire Northern Mindanao and that they have already given out around P100 million in investments.

She told Gold Star Daily that she has since resigned from Legacy after a heated confrontation with Cando and Noble last July this year.

“In fact, I am now preparing a case against Legacy with my lawyer Atty. (Elmer) dela Rosa ,” she said.

The source said she has received reports that Legacy is now filing for Insolvency and that Cando has scheduled a meeting with all Legacy investors in the region at SBC Party Venue, Kauswagan this Monday together with Atty. Antonio Soriano, the representative of the liquidators’ group.

This former Legacy agent described how she believes that there was “clear mismanagement of funds” that resulted to the downfall of this business firm.

She narrated how she received a fax message entitled “Legacy the Mother of All Scams” and how she confronted Cando and Noble about the problems now confronting Legacy.

She said some of the funds that were invested were actually hard-earned retirement benefits while others actually loaned from local banks with corresponding interested just to be invested with Legacy.

“This is not just going to destroy the trust of those I have convinced to join Legacy but their lives,” she said.

This paper failed to contact Soriano as of press time yesterday.

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Written by admin · Filed Under Cagayan de Oro