“Mateo Management Group Investment Scam”

Company Background:

MMG International Holdings Ltd. (formerly known as Mateo Management Group Holding
Co.) sells unregistered shares in violation of the Securities Regulation Code. They promised
interest rates ranged from 2.5 to 3 percent a month.

Ervin Mateo, incorporator-chairman of the board; Evelyn Mateo, finance director; Galileo
Saporsantos, marketing director; Nenito Saporsantos, director for accounts/documentation; and
Carmelita Galvez, executive director for finance.

Romeo Esteban, director for engineering; Joselito Zapanta, vice president for
capitalization; Felizardo Bauren, area head for the Visayas and Mindanao; Jessica Barrosa Castro,
authorized signatory of checks; Stephen Jan Balazuela, client relations officer; and Napoleon
Saron.

Listed as other shareholders of MMG are Evelyn Mateo, Galileo Saporsantos, Carmelita
Galvez, Romeo Esteban, Brenda Baarde, Nenita Saporsantos, Tirso Petil, Emma Sacro and Estella
Ledesma.

MMG is engaged in real estate development, film production, water purification, gasoline
service and shipping, among other business interests. They also have investments in restaurants
(Spectrumzone), cemeteries (St. Mattew‘s Memorial Garden and Calatagan Memorial Cemetery),
hotels (MMG Hotel), appliance store (Compact Appliance Store), rural bank (Rural Bank of Lipa),
skin care services and beauty consultancy (Lady-E Salon and Syarikat Roslinah), pawnshop
(MMG Pawnshop), cinema complex and department store (MMG Mall), and golf course and
waterfront facilities (Iloilo Waterfront & Yacht Club). Apart from this, the Mateos have a 24-hour
convenience store, computer school, purified drinking water firm, travel agency, maternity
hospital, and medical clinic, a promotion and advertising firm, financial services, construction,
shipping, trading, motorcycle sales (MMG Brunei Sendrian Berhad), construction, air charter
services, and film producing and TV production.

MMG has similar operations as Glasglow Collection & Services Inc., Multinational
Telecom Investors Corp. (Multitel), and ICS Exports, which offer high interest rates for a
minimum placement of P50,000. MMG’s head office is located at the Madrigal Business Park in
Ayala, Alabang. MMG offers an annual interest rate of 36 percent for a minimum investment of
P50,000.

MMG also accept investments from the public, most of the whom are located in Cavite,
Ayala Alabang, Bacolod, Baguio, Batangas, Bulacan, Cagayan de Oro, Cainta, Rizal, Dagupan,
Pampanga, Davao, Iloilo, Las Piñas, and Albay. MMG also reportedly duped investors from San
Diego, California USA, Hong Kong, and Brunei.

Case:

SEC uncovers another investment scam

Another investment scam has surfaced, leaving hapless individuals holding an empty bag.
Besieged by complaints from enraged investors, the Securities and Exchange Commission is
poised to file a criminal complaint against the owners and directors of the Mateo Management
Group or MMG International Holdings Ltd. for fraudulent sale of securities to the public.

Hundreds of investors trooped to the SEC this week to formally file a complaint against MMG for
failing to cover promised payments. They complained that the checks issued to them by MMG had
bounced and that officials of the pseudo-investment firm have refused to talk to them, keeping
them in the dark as to when they could get their money back.

Tomas Syquia, head of the SEC’s Compliance and Enforcement Department, said a criminal
complaint is now being prepared against the owners and officers of MMG for selling securities
without prior registration with the SEC.

SEC chairman Lilia R. Bautista, for her part, said the Commission will not let the officers and
owners of MMG off the hook due to the gravity of the offense committed by the erring firm. "It is
not a mere registration of securities problem because it has gone through fraud already. They have
failed to pay back their investors," Bautista said.

MMG (formerly known as Mateo Management Group Holding Co.) was issued a cease-and-desist
order on April 1, 2002 for selling unregistered shares in violation of the Securities Regulation
Code. The firm’s motion to lift the CDO was denied by the SEC on April 18, effectively making
the order permanent.

Despite the existing CDO, MMG continues to accept investments from the public, most of the
whom are located in Cavite, Ayala Alabang, Bacolod, Baguio, Batangas, Bulacan, Cagayan de
Oro, Cainta, Rizal, Dagupan, Pampanga, Davao, Iloilo, Las Piñas, and Albay.
MMG also reportedly duped investors from San Diego, California USA, Hong Kong, and Brunei.
One investor reportedly put in P50 million into MMG on the promise of hefty profits. Another
invested P3.5 million.

Syquia has urged others who have been defrauded by MMG to come out in the open and file the
appropriate charges against the company’s officers. "We’re encouraging the public to file estafa
cases against MMG officials," he said.

Prior to setting up MMG, Mateo was part of the Tibayan Mateo Compact Group until he severed
his ties in 2000 due to a falling out with his partners.
Mateo has various businesses ranging from gasoline service to real estate development (Mateo
Realty). This was the reason why thousands of investors had been lured into MMG’s investment
scheme. They felt that Mateo’s assets would be more than enough to cover their investments.
With the need to earn extra money becoming increasingly urgent, various investment proposals
are dangled before the public, promising get-rich-quick schemes with little or no effort on the
investor’s part.

SEC said the public should not be swayed by these fast-talking promoters or they may end up with
nothing but an empty savings account.

Related Literature:

SEC asks BI to issue hold departure order vs MMG execs

The Securities and Exchange Commission has asked the Bureau of Immigration to issue a hold-
departure order against the owners and officers of Mateo Management Group (MMG) to prevent
them from evading charges.

An SEC official said a hold-departure order is necessary to keep MMG officers from fleeing the
country and hold them accountable for the losses suffered by aggrieved parties. MMG is headed
by Ervin Mateo, an engineer.

The SEC also announced it would resume accepting complaints from the public due to mounting
requests from nagging investors of MMG. The commission earlier decided to stop accepting
complaints from MMG investors to enable the corporate watchdog agency to file its own complaint
with the courts.

The SEC has been deluged by complaints from disgruntled investors of MMG, who claimed that
the pseudo-investment firm failed to pay promised interests and return principal investments back.
MMG offers an annual interest rate of 36 percent for a minimum investment of P50,000.

Hold departure order issued vs MMG owners

The Department of Justice has issued a hold-departure order against the owners and officers of the
Mateo Management Group (MMG) to make them answerable for the losses suffered by its
aggrieved investors.

Jose Tomas Syquia, head of the Securities and Exchange Commission’s Compliance and
Enforcement Department, said the SEC’s request for the issuance of a hold-departure order had
already been granted. "The hold-departure order was signed by the acting secretary of the DOJ,"
he said.

The hold-departure order prevents the directors and incorporators of MMG from fleeing the
country and ignoring claims filed against them by around 20,000 investors. The SEC is urging
other victims who have been defrauded by MMG to come out in the open and file the appropriate
charges against the company’s officers.
MMG investors: We, too, are victims

Mateo Management Group (MMG) investors, who were named recently in published reports as
officers partly responsible for the alleged collapse of the business conglomerate said yesterday that
they too were victims of the firm.

"We are victims too," Galileo Saporsantos, Nenita Saporsantos, Tirso Petil, Grace Petil, Estella
Ledesma and Carmelita Galvez said in a statement. They claimed they were "mere nominees in
various entities comprising MMG and were just allegedly convinced by its chief executive officer
engineer Ervin Mateo into signing various incorporation papers of the firm.
The group said that Mateo and his wife Evelyn were solely responsible for the operation,
management and decision making of the MMG Group of Companies including where the funds
collected would be invested and how much interest is promised and given to the investors. They
also said that most of them don’t receive any salary or dividends from the MMG nor attended any
board or partners’ meetings of the firm adding their only participation was they allowed themselves
to be allegedly "taken advantaged of, by Mateo into signing those papers without asking what they
were for."

They accused the couple of allegedly taking advantage of their limited educational attainment and
susceptibility.
The group said they too invested substantial amount with MMG and even made additional
investments in September and October this year prior to the fiasco.

They said that they were left in the dark as to the exact nature of their role in MMG and to the
financial standing of the company when its checks allegedly started to bounce starting Oct. 25.
Many of them, they said, lost their lifetime savings.
Several of the firm’s checks issued to its clients reportedly bounced leading into suspicions that it
engaged in a scam, the allegation Mateo vehemently denied as he assured his business partners
that all the assistance they need would be provided them.
The investors said they are entertaining the idea of filing charges for allegedly violating PD 1689
(Syndicated Estafa) and BP 22 (Bouncing Checks) against Mateo and his wife to clear their
respective names.
Investors urged to file class suit against Mateo Group

The Securities and Exchange Commission has advised investors of the Mateo Management Group
or MMG International Holdings Co. Ltd. to group themselves and file a class suit against the
responsible officers of the pseudo-investment firm.

By doing so, Thomas Syquia, head of the SEC’s Compliance and Enforcement Department, said
investors can have the assets of MMG attached to answer for whatever losses they have incurred.
Syquia said that filing a class suit will ensure an airtight case against the responsible officers of
the MMG.

The Mateos have over 100 businesses ranging from gasoline service to real estate development.
To prevent MMG from further defrauding the public, the SEC had denied the company’s plan to
regularize its operations by registering P30 million worth of investment contracts.
The SEC’s corporation and finance department said MMG provided inaccurate, incomplete and
misleading information in its registration statement. In justifying its move, the SEC cited Section
13.1 of the Securities Regulation Code, which provides that the Commission may reject a
registration statement and refuse registration of security.

According to the SEC, MMG does not have a clear idea on what it is going to offer to the public
since it classifies investment contracts as non-negotiable and non-assignable when in fact these
securities are expected to be endorsed or transferred from one person to another in an unlimited
number.
MMG would have used proceeds from the sale of investment contracts to finance existing business
operations and for additional working capital requirements of the company’s subsidiaries and
affiliates.

SEC refutes MMG notice

The Securities and Exchange Commission (SEC) refuted yesterday the notice issued by the group
of pseudo-investment firm MMG International Holdings Co. Ltd., saying the measures being
undertaken by the group towards its rehabilitation are being pursued without the corporate
watchdog’s approval.

In its notice to the public, the SEC said: "As of the present date, there has been no communication
whatsoever from MMG to the SEC concerning any rehabilitation plan much less seeking approval
of the same, and therefore said notice misleads the public."

The SEC pointed out that the policy of the task force on business scam, headed by the Department
of Justice, is to ensure that there is facilitation on the filing of appropriate court cases for recovery
on the part of the investors victimized by the issuers of unregistered securities.
The advisory was issued by the SEC in response to queries made by the public concerning the
rehabilitation plan.
In a newspaper notice, the MMG group has called on all its legitimate business partners to join
and support them in the filing of the rehabilitation plan.

The group said it is now in the process of preparing the requirements of MMG’s rehabilitation
program pursuant to the rules of procedure on corporate rehabilitation.

11 MMG International Holdings Co. officials charged

Bacolod City prosecutor Augustus Rallos filed last Wednesday 58 counts of estafa against 11
officials of the controversial pyramiding firm MMG International Holdings Co. Ltd.
But the case did not only involve estafa; it was for syndicated estafa involving an alleged
investment scam.

Rallos filed the charges against the 11 in the Regional Trial Court of Bacolod.
Jocelle Batapa-Sigue, recently proclaimed as councilor-elect of Bacolod, said she will also file
forfeit claims against MMG with the Anti-Money Laundering Council. The claims will involve
about P24.8 million.

Rallos said most of the victims are retirees or people who had invested their hard-earned money,
succumbing to the lure of the firm’s dangled high returns on investments.

Being talked about in Bacolod are the identities of the victims, many of them retired government
and private employees.

The firm’s bigwigs charged were Ervin Mateo, incorporator-chairman of the board; Evelyn Mateo,
finance director; Galileo Saporsantos, marketing director; Nenito Saporsantos, director for
accounts/documentation; and Carmelita Galvez, executive director for finance.
Also included were Romeo Esteban, director for engineering; Joselito Zapanta, vice president for
capitalization; Felizardo Bauren, area head for the Visayas and Mindanao; Jessica Barrosa Castro,
authorized signatory of checks; Stephen Jan Balazuela, client relations officer; and Napoleon
Saron.

Rallos dropped from the case Madonna Grace Medal, Bacolod OIC; Rosalie Belecina,
documentation and client relations officer; and Mary Jean Pabon, accounts and documentation
officer.

Rallos said the three were not just employees of the firm who were unaware of the scheme, but
were also victims themselves.

The complainants, according to prosecutor Rallos, were enticed by the respondents to invest
unlimited cash. The promised interest rates ranged from 2.5 to three percent a month. Since these
were much higher than those given by banks, they were naturally enticing.
The firm’s officials also promised them guaranteed profits and gave assurances that their
investments would be returned to them in six months to as long as five years.
Rallos observed that the despite the cease-and-desist order of the Securities and Exchange
Commission, the MMG continued soliciting and receiving big investments from the unsuspecting
public.

The scam was exposed when MMG’s checks to investors started to bounce.
Lawyer Batapa-Sigue also said she will elevate Rallos’ resolutions to the Department of Justice
for review by its composite team created to handle all investment scams.
That, however, failed to ease the heartaches and anguish of the victims when they discovered that
they had been taken for a ride. One of them, a retired employee of a drug firm, tearfully recounted
to me how she was reduced to borrowing money from friends and relatives to be able to keep up
with the payments for her house.

There are many more sob tales of the investment scam victims. They should compel the
government to crack down hard on the corporate officers who preyed on the unsuspecting, most
of them losing their lifetime savings to the pyramiding schemes of these firms.

PYRAMID SCAMS MMG head pleads not guilty

Officials of one of the firms charged for alleged pyramid scams that amassed almost P100 million
from residents of Bacolod City and Negros Occidental about a decade ago, pleaded not guilty upon
being arraigned Wednesday in Makati City.Ervin Mateo, Mateo Management Group president,
and its finance officer, Joselito Zapanta, were arraigned at the Regional Trial Court Branch 132 of
Makati, Jocelle Batapa-Sigue, counsel for complainants, said.

She said the cases were filed by about 60 complainants from Bacolod and Negros Occidental in
2003 for syndicated estafa against MMG officials.

The pre-trial and trial of the cases, which are set March 9 and March 30 in Makati City,
respectively, require the active participation of the complainants, who are being called to get in
touch with Arnel Sigue as assigned collaborating counsel as soon as possible.

Woman with 700 arrest warrants nabbed by police was an ex-film producer

A 63-year-old former movie producer, Estela Ledesma, was arrested by the Philippine National
Police – Criminal Investigation and Detection Unit (PNP-CIDU), on the strength of 700 arrest
warrants issued by various courts in the country since the early 2000s.
In an interview with GMA News' “24 Oras”, Senior Police Officer 1 (SPO1) Pedro Urbano Jr. of
the PNP-CIDU said Ledesma was arrested during the 18th birthday party of her granddaughter in
Quezon City.Urbano said he and another CIDU officer disguised themselves as a couple attending
the party.

“Pag approach ko, 'Ah Tita Estela, kamusta po? So, nag acknowledge siya sa name niya. 'O, hijo
kamusta?' Kunyaring nagbeso-beso ako. Pero binulungan ko siya, 'Pulis po ako, CIDG,'” Urbano
recounted.
“Nagbeso-beso rin ako sakanya sabay bulong sakanya na 'Ma'am you're under arrest. May warrant
po kayo. Para di maeskandalo itong okasyon ninyo, sumama na lang kayo ng maayos,'” SPO1
Cynthia Cabauatan, the other CIDU officer, chimed.

Ledesma was identified as one of the incorporators of the Mateo Management Group Holdings
Co. (MMG) which had allegedly victimized around 4,000 investors at the height of its operation
from 2001-2003.

Its founder, Irvin Mateo was arrested in March 2003 and is currently detained at the Makati City
Jail. Other officials of the MMG remain at large.

The Makati RTC had earlier consolidated the cases against the MMG officials, according to the
PNP-Criminal Investigation and Detection Group (CIDG).

“Ang isa sa mga investor daw sa grupo na ito ay si ating pambansang kamao, Congressman Manny
Pacquiao and former Congressman Mikey Arroyo... Ang pagkakaintindi ko, based dun sa
pagkakalahad ng suspek, ang nakabawi lang yata [ng investment niya ay si Mikey Arroyo,” said
CIDG-CIDU chief Senior Superintendent Bert Ferro.

GMA News was unable to contact Arroyo and Pacquiao for comment as of posting time. Pacquiao
is currently in Los Angeles, California.

GMA News was also unable to reach Ledesma for comment. According to the CIDG, the suspect
was suffering from high blood pressure since Monday, and was brought to the PNP General
Hospital.

Meanwhile, Ferro floated the theory that Ledesma herself could be a victim in the estafa case.
“Sabi niya sa amin, P15 million sa family niya alone ang nawala dahil sa grupong ito (MMG),”
Ferro explained.

Pyramid scam suspect hit in Quezon City

Authorities have arrested the back of a pyramiding scam that killed 4,000 people in two years.
After a decade of hiding, police are now in the custody of one of the principal fraud suspects,
Estela Ledesma, 63, a resident of Fairmont Subdivision, Fairview, Quezon City. Ledesma was
found during her grandson's debut at the Casa Milan Subdivision, Commonwealth Avenue,
Quezon City. Ledesma was arraigned on the validity of the arrest warrant issued by the Muntinlupa
Regional Trial Court on 10 counts of syndicated estafa without bail. The suspect is involved in
Mateo Group Holdings Co. investment scam Ltd. and MMG International Management Group that
scammed 4,000 people from 2001 to 2003. Based on the investigation of the Criminal Investigation
and Detection Group of the Philippine National Police, 700 arrest warrants were issued against
Ledesma from various courts in Las Piñas, Makati and Muntinlupa. Aside from syndicated estafa,
Ledesma's group is still facing charges of violating the Securities Regulation Code of the
Philippines filed with them by the Department of Justice.
What happened to the Mateo Management Group also called MMG in the Philippines did
they pay their investors back already?

No payment. it seems all assets of MMG were already sold.

Some cases are pending due to prosecutors sleeping on the job such as DOJ prosecutor Philip
Kimpo, there's no chance that this prosecutor will elevate the case in court unlike the makati
prosecutors in which there is an on-going trial.

It has been 8 years since investors took an oath in prosecutor Kimpo's office and no update as of
2012.
Another ‘pyramid’ suspect arrested

The crackdown on pyramid scam operators continued yesterday as police arrested an engineer in
Parañaque City.

Suspect Ervin Mateo will likely be presented to the press today, said Senior Superintendent
Leopoldo Bataoil, Philippine National Police (PNP) spokesman.

Police have also detained for questioning Mateo’s secretary and first cousin, Ethel Mateo-
Bartolome, who they said could be equally liable for duping clients of their money.

Bataoil said agents of the Criminal Investigation and Detection Group (CIDG) arrested Mateo at
12:10 a.m. in his alleged hideout in Merville Subdivision in Parañaque City.

CIDG agents pounced on Mateo a few days after the arrest in Pangasinan of Rosario Baladjay,
another scam suspect who owns the so-called Multinational Telecoms Corp. (Multitel).

Mateo, an engineer, heads the Mateo Management Group, which has reportedly victimized scores
of "investors" into joining the get-rich-quick pyramid schemes.

Mateo and Bartolome are detained at the CIDG cell at Camp Crame. Mateo is the third of 29
suspects being hunted for the pyramid scam that has reportedly amassed more than P30 billion in
investments from thousands of investors.

Police said Mateo is facing 87 counts of estafa filed against him by his victims from Dasmariñas,
Cavite. More victims are expected to file complaints against him.

Mateo had tried but failed to comply with the demands of his complaining investors, resulting in
his arrest. He vowed to return the money or give the interests as promised but his repeated failure
to deliver prompted his clients to lodge formal complaints against him, the CIDG said.

Mateo was reportedly previously involved in the production of a television show and the
publication of a fly-by-night tabloid. He was also said to have owned the Text Vintage Publishing
House and ran a construction business.
Earlier, the National Bureau of Investigation (NBI) revealed that at least P120 billion has been lost
to pyramiding scams.

Of the P120 billion, Baladjay’s Multitel and the Mateo group each account for P20 billion to P25
billion, while Tibayan siphoned off P2 billion to P3 billion.

The NBI said yesterday some pyramid scam operators who are now in hiding may be receiving
police protection, making their arrest more difficult.

NBI assistant director Lolito Utitco said they have received unconfirmed reports that some lawmen
are aiding the suspects. Utitco is the head of the newly formed task force tapped to hunt down
instigators of the anomalous investment schemes.

Utitco also expressed satisfaction at Mateo’s arrest. "It is good to know that Mateo has been
arrested by the police. Sooner or later they will be arrested, because they cannot hide forever. The
problem really is locating these people as they appear to be getting help from some policemen. But
that is just a report," he said.

Curse of the Pyramid

It’s neither the looming war nor rising crime that is terribly upsetting our men in uniform.
Morale
within the elite units of the Philippine National Police (PNP) and the Armed Forces of the
Philippines (AFP) has hit a new low, brought about by shady and get-rich-quick deals with the
bankrupt MTS Trading and other investment rackets commonly known as pyramiding schemes.

As this developed, several senior military and police officials met yesterday in an emergency
meeting in a bid to help resolve the morale issues involving their men.
Officials said they have
observed unusual behavior among men victimized by the pyramiding scams.
"The situation is
explosive. My men who have fallen victims to the scam have been acting strangely lately. Some
are reluctant or even defiant to follow deployment orders," one of the military officers told his
colleagues during the meeting. The officer, a unit commander, is being blamed by his men for their
financial woes.
"At present, the morale of troops is very low because most of our men are pre-
occupied with recovering their lost investment," said one senior police official.
PNP units affected
include the Special Action Force, PNP-Aviation Security Group, Criminal Investigation and
Detection Group , National Capital Regional Police Office and the Police Anti-Crime Emergency
Response. Also feeling the effects of the scam are elite troops of the Philippine Army-Special
Forces and the Army Scout Rangers.
"This problem, if not resolved, will affect the operational
aspects of our command’s functions and responsibilities," claimed one Army official.

Another claimed that he started noticing unusual behavior among his men following the "secret"
abduction of pyramid queen Ma. Teresa Santos of MTS Trading by agents of the CIDG.
"This
triggered some animosity among the victims, who later found out that those who took Santos under
custody were able to recover their investments," said the official.
"Nagkaroon ng iwanan, kaya sila-sila na ngayon ang nag-aaway. Most of the victims have no more
take-home pay to speak of because they are still paying for the loans they made. Tinatamad na
lahat magtrabaho," the head of an elite PNP unit said.

Two of the latest pyramid scam suspects arrested by the PNP said yesterday they fear for their
lives as more victims continue to surface and file charges against them.
During interrogation,
suspect Ervin Mateo and his secretary Ethel Mateo Bartolome said they are afraid because so many
investors, including police and military men have been going after them since the Mateo
Management Group failed to remit the interests.
Mateo, an engineer, appealed for sobriety among
his clients.
The Mateo Management Group is one of the biggest groups engaged in get-rich-quick
deals, with investments totaling from P20 to 25 billion, police said.

CIDG director Chief
Superintendent Eduardo Matillano presented Mateo and Bartolome to the media yesterday.

During the press conference, Mateo took the opportunity to assure some 18,000 clients that he
intends to return their money.
"We are doing our best to be able to return your money. I will give
it all back," he said in Filipino. He admitted that he diverted majority of the investments to
businesses, including shipping and trucking firms, a computer center, a subdivision, an assembly
plant for crew cabs, convenience stores, a learning academy, a security agency, a memorial garden,
a furniture store and distribution of detergents.

How Pinoys lost billions of pesos from these investment scams

Through the years, billions of savings that could have gone to creation of new businesses,
education, retirement, homes, and even social causes have been siphoned away by financial scams.

Financial adviser Salve Duplito said that strictly speaking, financial crimes do not kill people—
they kill dreams and confidence in long-term saving and investing.

Duplito said the 10 biggest scams of all time in the Philippines are the following:

10) Bancap scam

A Treasury bill scam ran by Marilyn Nite

Known losses: P900 million

9) FrankSwiss and DeutchFranks

These were high-yielding investment products marketed through the Internet from March to July
2007 that offered as much as 4.5 percent returns per day.

“Some of the victims included politicians and celebrities. It folded after a media report called
investors to withdraw their money and the pyramid collapsed,” Duplito told ANC’s “On The
Money.”
The National Bureau of Investigation filed estafa charges against Eleazar Castillo, chief financial
adviser of FrancSwiss.

Known losses: P1 billion

8) Swiss Mutual Fund International Scam

An international online scheme that ran for more than a decade before it hit the Philippines,
offering high guaranteed returns.

Known losses: Unknown

7) Royal Manchester Five Trading Corp.

A currency trading program that promised a 4 percent per month guaranteed return to investors in
2008.

Known losses: P2 billion

6) Tibayan Group Investment Corp.

A mutual fund scheme that guaranteed 3 to 5 percent a month for a six-month to 1 year lock-in
period.

Known losses: P2 billion

5) Mateo Management Group

“In 2003, couple Ervin and Evelyn Mateo enticed at least 20 people to invest billions of pesos by
promising high guaranteed returns. They disappeared after getting the investment,” said Duplito.

Government filed 30 counts of estafa against the Mateos and other officers.

Known losses: P4.3 billion

4) Performance Investment Products Corp.

In 2007, an alleged forex trading outfit duped people who were blinded by the 10-15 percent
guaranteed return being offered.

“This was a scam that victimized mostly rich people, some got in thinking too many important and
smart people can’t be wrong. Evidently, they were,” said Duplito.

Known losses: P11 billion

3) Aman Futures Group

In 2012, over 100,000 families in Pagadian City were enticed in commodities trading investments
that offered up to 80 percent profit in 20 days.
A manhunt is still ongoing for founder Aman Amalilio.

Known losses: P12 billion

2) Multinational Telecom Investors Corp.

In 2002, more than 950,000 individuals got burned in this investment scheme that offered 4 percent
to 5 percent a month.

Known losses: P25 billion

1) Legacy Group

In 2008, Celso de los Angeles’ group of companies offered motorcycle loan and investment loan
programs with guaranteed commission of up to P15,000.

Angeles was put in jail and died of cancer in 2012.

Known losses: P30 billion

“All these scams depended on fresh victims, charismatic leaders, greed among investors, and
misplaced trust,” Duplito said.

Duplito warned that several companies allegedly involved in cash scams, namely Emgoldex, its
Philippine counterpart Goldxtreme, and One Lightning Corp., are still operating.

Investment Fraud

Investment fraud involves the illegal sale or purported sale of financial instruments. The typical
investment fraud schemes are characterized by offers of low- or no-risk investments, guaranteed
returns, overly-consistent returns, complex strategies, or unregistered securities. Examples of
investment fraud include advance fee fraud, Ponzi schemes, pyramid schemes, and market
manipulation fraud.

These schemes often seek to victimize affinity groups—such as groups with a common religion or
ethnicity—to utilize the common interests to build trust to effectively operate the investment fraud
against them. The perpetrators range from professional investment advisers to persons trusted and
interacted with daily, such as a neighbor or sports coach. The fraudster’s ability to foster trust
makes these schemes so successful. Investors should use scrutiny and gather as much information
as possible before entering into any new investment opportunities.

Tips for Avoiding Investment Fraud:

§ Don’t judge a person or company by their website; flashy websites can be set up quickly.

§ Don’t invest in anything you are not absolutely sure about. Do your homework on the
investment and the company to ensure that they are legitimate.

§ Check out other websites regarding this person/company.

 § Be cautious when responding to special investment offers, especially through unsolicited
e-mail.

§ Be cautious when dealing with individuals/companies from outside your own country.

§ Inquire about all the terms and conditions.

Securities fraud

Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the
stock or commodities markets that induces investors to make purchase or sale decisions on the
basis of false information, frequently resulting in losses, in violation of securities laws.

Securities fraud can also include outright theft from investors (embezzlement by
stockbrokers), stock manipulation, misstatements on a public company's financial reports, and
lying to corporate auditors. The term encompasses a wide range of other actions, including insider
trading, front running and other illegal acts on the trading floor of a stock or commodity exchange.

Types of securities fraud

• Corporate fraud
• Corporate misconduct
• Dummy corporations
• Internet fraud
• Insider trading
• Microcap fraude
• Accountant fraud
• Boiler rooms
• Mutual Fund fraud
• Ponzi schemes

Characteristics of victims and perpetrators

Any investor can become a victim, but persons aged fifty years or older are most often victimized,
whether as direct purchasers in securities or indirect purchasers through pension funds. Not only
do investors lose but so can creditors, taxing authorities, and employees.

Potential perpetrators of securities fraud within a publicly traded firm include any dishonest
official within the company who has access to the payroll or financial reports that can be
manipulated to:

1. overstate assets

2. overstate revenues

3. understate costs

4. understate liabilities

5. understate pennystock
GRUPO MATEO PILIPINAS INVESTORS ASSOCIATION, INC

Grupo Mateo Pilipinas Investors Association, Inc. is an organization of suffering investors, for all
investors in the Philippines and abroad of the defunct Mateo Management Group (MMG)
International, Inc. The association is legally registered with Philippine Securities and Exchange
Commission (SEC) under SEC Registration No. CN 200342461. The association's goals are the
repayment of lost investments at MMG through rehabilitation, recovery of assets and cash, and the
prosecution of erring officers and personnel of MMG.

Since the collapse of MMG in October 2002 (Metro Manila, November to December in the
provinces), thousands of investors have been enduring untold misery and shattered dreams. Not a
few even died. Many have been taken advantage by unscrupulous groups and lawyers offering
false hopes of recovering their investments and worse even milked the desperate investors of their
precious cash and savings. Some members of our group were also victims of these people.

Because of this, a handful of investors tediously for several months negotiated with Engr. Ervin
Mateo, Chairman of MMG, to take over the rehabilitation of MMG's assets and repayment to
legitimate investors from the inutile SEED Corporation headed by Mrs. Helen San Agustin. For
over a year, SEEDCORP has depleted and even absconded some assets of MMG. Finally, on
November 24, 2003 Engr. Mateo signed a Revocation of General Power of Attorney (GPA) to
SEEDCORP and gave authority to GRUPO MATEO PILIPINAS INVESTORS ASSOCIATION,
INC. (GMPIA) to handle the rehabilitation of his company and the return of investments. On
December 10, 2003 the association was registered and granted a Certificate of Incorporation by
the Securities and Exchange Commission. GMPIA was able to recover the records of some 18,000
investors from SEEDCORP. The first publication of Revocation of General Power of Attorney
was published in the Philippine Daily Inquirer, a requirement by law. This was financed by
contributions of founding members of GMPIA. By January 14, 2004, the association was able to
take over MMG Condotel building in BF Resort, Las Piñas City to serve as our office.

Immediate Action Required:

§ Filing of Rehabilitation Petition - Filed March 2, 2004 at the Regional Trial Court of
Muntinlupa. The down payment for filing of Petition was P100,000.00 paid by benevolent
members and GMPIA

§ Publication of Stay Order after filing of Rehabilitation Petition

§ Second and Third Publication of Revocation of General Power of Attorney

Help Needed:

§ Prayers for the success and speedy Rehabilitation

§ Investors disseminate information to fellow Investors

§ Investors pay P200.00 as One-Time Membership fee to cover any and all operational
expenses of our Association

§ Information on Whereabouts of MMG Managers and Directors

Rehabilitation Petition

Republic of the Philippines

REGIONAL TRIAL COURT
National Capital Judicial Region
Muntinlu pa City
Branch 256

IN THE MATTER OF:

THE PETITION FOR CORPORATE REHABILITATION

WITH PRAYER FOR SUSPENSION OF PAYMENTS.

GRUPO MATEO PILIPINAS INVESTORS ASSOCIATION

INC., represented by its President, Aurora S. Magtoto

Petitioner,
x------------------------------------------x

Special Proceedings No. 04-012

MMG INTERNATIONAL HOLDINGS CO. LTD., MMG INTERNATIONAL MANAGEMENT GROUP INC., MATEO
MANAGEMENT GROUP HOLDINGS CO., TMCG HOLDINGS CORPORATION, ILOILO WATERFRONT &
YATCH CLUB, INC., FILGLOBE MULTIHOLDINGS CO., LTD., MATEO REALTY AND DEVELOPMENT
CORPORATION, E.Y. MATEO CONCRETE PRODUCTS, MATEO INDUSTRIES PHILS. INC., MMG SALES
INC., MMG ACADEMY INC., MMG MOTORS INC., MATEO CAR SALES, COMPACT CREDIT CORPORATION,
COMPACT RESOURCES CORP., MMG INTERNATIONAL TRADING CORPORATION, MMG INTERNATIONAL
TRAVEL AND TOURS, MMG SECURITY AND INVESTIGATION GROUP INC., MMG MGG MEDICAL INC.,
MMG ENTERTAINMENT GROUP INC., M-POWER ENTERPRISES, INC., TRANSASSET CORPORATION,
SOUTHBOUND CITY INTERNATIONAL CORPORATION:
The MMG Companies To Be Rehabilitated.

PRAYER

WHEREFORE, petitioner respectfully prays that:

A. Upon filing of this Petition, this Honorable Court issue an Order:

i. Appointing any of the above-named nominees as Interim Receiver of all the companies
involved and fixing his/her bond;

ii. Staying enforcement of all claims, whether for Money or otherwise and whether such
enforcement is by court action or otherwise, against any member of the "MMG Companies",
and their guarantors and sureties, including:

A. The staying of the enforcement or implementation of any and all applications for extra-
judicial foreclosure sale and/or the actual foreclosure sale, including any and all attempts to
consolidate title or titles before the Office of the concerned Register of Deeds.
As provided by Sec. 1, Rule 3 of the "RULES", the proceedings being in rem, jurisdiction is
considered acquired over all those affected by the proceedings upon publication of the Stay
Order in a newspaper of general circulation for the prescribed - Two (2) consecutive weeks.

iii. Prohibiting "Mateo" and any member of the "MMG Companies" from selling, encumbering,
transferring, or disposing in any manner any of its properties except in the ordinary course of
business;

iv. Prohibiting any member of the "MMG Companies" from making any payment of its liabilities
outstanding as of the date of the filing of this Petition;

v. Prohibiting the suppliers of the "MMG Companies" from withholding supply of goods and
services in the ordinary course of business for as long as they make payments for the services
and goods supplied after the Stay Order;

vi. Directing the "MMG Companies" to pay in full all administrative expenses incurred after the
issuance of the Stay Order;

vii. Fixing the initial hearing on this Petition not earlier than Forty Five (45) days but not later than
Sixty (60) days from the filing hereof;

viii. Directing the Petitioner to publish the Order in a newspaper of general circulation in the
Philippines once a week for Two (2) consecutive weeks;

ix. Directing all creditors of the "MMG Companies" including "MATEO" himself and all interested
parties (including the Securities and Exchange Commission) to file and serve on the Petitioner
a verified comment or opposition to this Petition, with supporting affidavits and documents,
 not later than Ten (10) days before the date of the initial hearing and putting them on notice
that their failure to do so would bar them from participating in the proceedings; and

x. Directing all creditors of the "MMG Companies" and interested parties to secure from the
Court copies of the Petition and its annexes within such time as to enable themselves to file
their comment on or opposition to the petition and to prepare for the initial hearing of the
same.
A. After due proceedings, this Honorable Court Issue an Order approving the
Rehabilitation Plan and directing the Rehabilitation Receiver to monitor the
implementation of the Rehabilitation Plan
and;
B. Upon the accomplishment of the objectives of the Rehabilitation Plan, this Honorable
Court issue an Order declaring the company / companies in the "MMG Companies" to
be or arc fully rehabilitated.
Petitioner likewise pray for other relief as may be just and equitable in the premises.

Las Pinas City for Muntinlupa City, 26th February 2004 A.D.

Nera, Cabrera and Associates

Counsel for Petitioner
Grupo Mateo Bldg.,
Capitoline Hills cor. A. Nosce Street,
BF Resort Village, Las Piñas City, MM

Sgd. By: FIDEL M. CABRERA II

Roll No. 34421
IBP LTM No. 00537
PTR NO. A-1997519
07-01-2003 Q.C.

Lawmaker to SEC: Strike hard vs firms linked to pyramiding

A lawmaker urged the Securities and Exchange Commission (SEC) to be more proactive in
cracking down on so-called investment companies that are actually engaged in pyramiding scams.

Nationalist People’s Coalition Rep. Sherwin T. Gatchalian of Valenzuela, member of House

Committee on Trade and Industry, issued a statement following reports that hundreds of ordinary
people have been lured by the promise of high returns for their investments with One Dream Global
Marketing Incorporated.

One Dream officers are now the subject of syndicated estafa complaints filed by their victims.

News reports said that One Dream enticed investors under a profit scheme, with a promised payout
of P1,300 after four days for an P888 investment. But the entity, which only started in May this
year, has no permit to engage in selling and marketing investment products.
“It is the job of the SEC to scrutinize entities registering as investment companies and deny them
the much-needed SEC registration which legitimizes firms engaged in pyramiding scams like One
Dream Global Marketing Inc.,” Gatchalian said.

Gatchalian said that the complainants who are mostly from Lipa, Batangas, are ordinary Filipinos
who just wanted to double their money in a short period of time.

“This has got to stop and the SEC has a vital role in this,” Gatchalian said.

However, Gatchalian said that unfortunately, the SEC has not been proactive in detecting SEC-
registered firms engaged in pyramiding scams.

“What the SEC does is to appeal to those who have information about unauthorized investment-
taking activities to report it to the Enforcement and Investor Protection Department,” he said.

The lawmaker said that over the years, thousands of investors lost their savings from the pyramid
scams of companies, such as the Grupo Mateo Pilipinas Investors Association Inc. (Mateo Group),
headed by Ervin Mateo, and Multinational Telecoms Corp. (Multitel), led by businesswoman
Rosario Baladjay.

“Mateo and Baladjay were arrested in 2003, but the status of their respective cases filed by the
National Bureau of Investigation remains unclear. Among the victims of the Mateo Group and
Multitel were active and retired generals who invested their millions worth of savings hoping to
double their money,” he said.

More recently in 2012, complaints were filed over the P12-billion pyramid scam of Aman Futures
boss Emmanuel Amalilio, alias Mohammad Kamal Sa’aid, who is said to be a Malaysian.

In 2012 he said that the Grand Alliance of Business Leaders Association Inc. (Gabai), reported to
be the marketing arm of the South Luzon Multipurpose Cooperative, allegedly duped its investors
into paying as high as P175,000 weekly for a 40-percent return.

Gatchalian said there are often “red flags” that can be observed from scam operators providing
false information when they register their companies with the SEC.

“The SEC can create a team who will check on these questionable investment firms applying for
SEC registration. The same team can review the list of registered firms suspected to be engaged in
pyramiding and move for the revocation of their registration papers,” Gatchalian added.
Reaction:

MMG is all about complete investment fraud. They encourage investors to invest in the
company and its securities, earning interest. Like most other investment groups, they offer higher
interest rates to attract investors. The owner of MMG, Ervin Mateo, had a lot of businesses ranging
from gasoline services to real estate development. It led the public to believe their investments
were in good hands. Only this time, MMG was a fraud, it sold securities without prior registration
with the SEC and committed fraud on top of it. All the investors of MMG, disregarding Mateo and
his wife, were victims to the scam as well.

The SEC reacted quickly to the case filed by various investors regarding MMG, The SEC
quickly issued a cease-and-desist order for selling unregistered shares, violating the Securities
Regulation Code, prevented the regularization of its operations and addressed the fake notice given
by MMG. The SEC also worked with the DOJ to prevent him from leaving and evading the
charges.

In this case, I think its investors were manipulated due to the increasingly competitive and
urgent need to earn money, with MMG dangling a line, and investors taking the bait. The public
was easily swayed by these promoters offering easy money with no effort. Despite the cease-and-
desist order of the Securities and Exchange Commission they continued to sell securities to the
public, and its investors considering it had interests with MMG, had no knowledge of its existence.
The neglect of the investors and the public in general, may be one of the reasons the company was
able to commit fraud on such a large scale. Of course, the main problem lies with the ethical
principles of Mateo, considering he perpetrated the issue.
References:

Dela Peña, Zinnia (2002). SEC uncovers another investment scam. Retrieved from
https://www.philstar.com/business/2002/11/29/185857/sec-uncovers-another-investment-scam

Dela Peña, Zinnia (2002). SEC asks BI to issue hold departure order vs MMG execs. Retrieved
from https://www.philstar.com/business/2002/12/07/186921/PDcoosMOkIGWK3Vx.99

Dela Peña, Zinnia (2002). Hold departure order issued vs MMG owners. Retrieved from
https://www.philstar.com/business/2002/12/14/187821/hold-departure-order-issued-vs-mmg-
owners

(2002). MMG International Holding Co. Ltd. Retrieved from https://www.sec.gov.ph/wp-

content/uploads/2015/11/MMG-International-Holdings-Co.-Ltd.-18-Apr-2002.pdf

(2002). MMG investors: We, too, are victims. Retrieved from

https://www.philstar.com/metro/2002/12/23/188958/mmg-investors-we-too-are-victims

(2003). Investors urged to file class suit against Mateo Group. Retrieved from
https://www.philstar.com/business/2003/01/11/191115/investors-urged-file-class-suit-against-
mateo-group

Dela Peña, Zinnia (2003). SEC refutes MMG notice. Retrieved from
https://www.philstar.com/business/2003/06/05/208909/sec-refutes-mmg-notice

Espina, Rolly (2004). 11 MMG International Holdings Co. officials charged. Retrieved from
https://www.philstar.com/business/2004/05/22/250954/11-mmg-international-holdings-co-
officials-charged

Gomez, Carla (2011). PYRAMID SCAMS MMG head pleads not guilty. Retrieved from
http://www.archives.visayandailystar.com/2011/February/25/topstory9.htm

Marcelo, Elizabeth (2014). Woman with 700 arrest warrants nabbed by police was an ex-film
producer. Retrieved from https://www.gmanetwork.com/news/news/metro/357079/woman-with-
700-arrest-warrants-nabbed-by-police-was-an-ex-film-producer/story/

Robert (2014). Pyramid scam suspect hit in Quezon City. Retrieved from
https://www.aseanbreakingnews.com/2014/04/pyramid-scam-suspek-timbog-sa-qc/

What happened to the Mateo Management Group also called MMG in the Philippines did they
pay their investors back already? Retrieved from
https://www.answers.com/Q/What_happened_to_the_Mateo_Management_Group_also_called_
MMG_in_the_Philippines_did_they_pay_their_investors_back_already

Mendez, Christina (2003). Another ‘pyramid’ suspect arrested. Retrieved from

https://www.philstar.com/headlines/2003/03/17/199225/another-145pyramid146-suspect-arrested

Laude, Jaime and Felipe, Cecille (2003). Curse of the pyramid. Retrieved from
http://pesopeso.tripod.com/letter019.htm

(2015). How Pinoys lost billions of pesos from these investment scams. Retrieved from
https://news.abs-cbn.com/business/07/21/15/how-pinoys-lost-billions-pesos-these-investment-
scams

Investment Fraud. Retrieved from https://www.fbi.gov/scams-and-safety/common-fraud-

schemes/investment-fraud

https://en.wikipedia.org/wiki/Securities_fraud

http://grupomateo.tripod.com/aboutus.htm

Dela Cruz, Jovee Marie (2015) Lawmaker to SEC: Strike hard vs firms linked to pyramiding.
Retrieved from https://businessmirror.com.ph/2015/07/25/lawmaker-to-sec-strike-hard-vs-firms-
linked-to-pyramiding/