Whatever Happened to that PIPC Scam in 2007 ???

Good grief, it’s been almost seven years since the Performance Investment Products Corp (PIPC) Scam blew up in mid-2007, and shortly thereafter I wrote this initial post on the topic. That post was read by over 40,000+ people over the past six years, and at the time, it attracted some vehement comments from folks hit by the scam. Go back and read the original post and comments if you want to refresh your memory. I then followed up that initial post with this second post on the topic, which also garnered a lot of page views, and again, at least two of the commenters were rather vocal that I basically had no clue what I was writing about, and that it wasn’t a scam at all, and that time would prove their “fairytale take” on the reported up to $250Million dollar financial brouhaha.

Over the years, I have received “hate mail” from folks I can only attribute to that or other similar rants I have published on the net, and while the vast majority of marketmanila.com’s readers have appreciated those rants, there will always be a few that will feel targeted, offended, their toes stepped on, or just downright bitter in their ignorance or lack of understanding on the specific issue under discussion. At any rate, most of the “hate mail” ends up in the trash or spam folder, so it may help folks vent, but I often don’t even get the messages or comments. One such hate mail recently made it through, however, and it triggered my interest in whatever happened to those PIPC posts I wrote over 6 years ago. Was it going to be a case of “I TOLD YOU SO” or would I have to eat humble pie?

At the time, I basically posed four key questions that were never answered by the commenters who disagreed with my posts and comments, and some of those questions have apparently been answered:

1. According to this scam update on pinoymoneytalk, and which quotes an Inquirer article, FRAUD charges were filed against several people connected with the firm in December 2007. If you go back to my original posts, I stressed the term FRAUD on several occasions. That update also stresses that the firm, PIPC was NOT AUTHORIZED to BROKER and SELL securities or investments, in “blatant violation” of SEC laws. Hence, one of my questions clearly answered, the firm wasn’t a legitimate investment firm with the capability to accept investor money legally it seems from these reports.

2. The investigative firm Ferrier Hodgson hired to track down the incident, apparently reported their opinion that the PIPC scam was in fact a “PONZI SCHEME” contrary to the protestations of various folks associated with PIPC and even some of its investors, see update also on pinoymoneytalk.com, here.

3. In 2011, according to this post, the SEC filed an AFFIDAVIT FOR THE REVOCATION OF CORPORATE REGISTRATION for a whole host of listed reasons, including the fact that the company took investments when it wasn’t authorized to do so.

Other than these updates above (based on internet searches only), I have no other information and cannot find any news as to whether the FRAUD cases progressed, were decided upon, appealed, etc. I have no information if any of the defendants are in custody, or are on the run, or have successfully defended their innocence.

The bottom line is, it appears that the PIPC scam, was INDEED A SCAM. Lots of people lost millions of dollars in investments. The SEC filed FRAUD charges and that investigators opinions suggested a PONZI SCHEME. Other internet articles suggest other efforts by bilked investors to recover their funds, and to hold banks and other intermediaries liable for the fiasco.

I feel very badly for the folks who lost money in this scam. And my original posts were not meant to offend anyone, but rather to educate tens of thousands of readers to avoid a similar fate. But if time would indeed tell, then the contents of my original posts have told the story rather presciently, I would say. And as for the “hate mail” folks, get over it, I am not your enemy, perhaps you are your own worst enemy. :)

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8 Responses

  1. The Madoff scam happened after PIPC, yet no progress seems to have been made in the latter’s case. Madoff has been convicted and sentenced to life, his son committed suicide because of the shame, yet here nothing seems to have happened. Similar circumstances yet different outcomes due to an inutile justice system.

  2. Monty, that is a great comparison, and I agree, the wheels of justice creak slowly here in many cases. It’s amazing that no outcome of any sort has been publicly reported regarding the folks that participated in this scam…

  3. To Monty: the Madoff scam occured in the USA. Here in the USA they (government,justice dept,etc) GET YOU if you committed a crime (although there are still some who do get away). Do you really expect the Philippines to do the same? It is not amazing that no adverse outcome has been publicly reported because most likely there were no penalties meted out to the perpetrators, just the way things have always been run in the Phil…unfortunately.

  4. I had to read the old articles to which I knew nothing about because I was just fresh out of college then. Why look so far behind? We haven’t heard anything from the PDAF issue which was only last year. Only one elected official is reacting to it now. I can just imagine that in a few months how forgotten this issue will be. And somebody reacting to it after ten years how the family has “gotten away” with it.

  5. Marixie, we always hope that the justice system will get better, but sadly the improvements have been quite minimal so far. Well at least GMA is in detention, but to what the final outcome of this case may be, who knows. Even if convicted, a Binay presidency would most likely pardon her anyway, along with all the senators involved in the Napoles scam. Remember, the Marcoses and their cronies never answered for their crimes, with some of them offering a revisionist version of history to wash their hands clean.

    MM, you conducted a poll regarding possible presidential contenders. I hope you do a follow up post to get commenters to sound off on what they really think.

  6. I find it tragic that most pinoys are ningas-cugon and easily move on to the next controversial issue. Clarissa is right, months from now, the PDAF scandal will be forgotten and the likes of Jinggoy, Enrile and Bong will be re-elected or elected to higher posts. We deserve the kind of government we have. There is no doubt that Binay will be our next president and we can all say goodbye to any “daang matuwid” efforts. Etta and her HR advocates will hate me for saying this but our country needs a Duterte who shoots people breaking the law!

  7. I agree with MP. We pinoy hate Totalitarianism, thats why our ancestors fought the Spaniards, Americans and Japanese. But truly what we need is a “Overhaul” in our government, society and way of life. Find whats corrupt and rotten, then replace everything and everyone. We complain but actually do nothing, expecting someone else to just solve our problems. True change should come from the people.

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