Scams Flood PSE Foreigners beware!
Economy

Scams Flood PSE

Foreigners beware!

Mar 22, 2021, 7:17 AM
Miguel Raymundo

Miguel Raymundo

Writer

The local stock market is fast earning a nasty reputation of being swarmed by white collar criminals and people of dubious characters that was best exemplified by the recent Abra Mining debacle. It is imperative that PSE should implement reforms to stem the tide of stock market scams.

FOR stock traders and investors particularly foreigners who are new in the game and might want to try their luck in the local bourse, it pays to be mindful that they are entering tricky waters and must always be wary of who are they dealing with.

Engineer C. Donchian is a foreigner who has consultancy projects in several Asian countries, including the Philippines.

Considerably well off and at home with his peripatetic lifestyle, Donchian is an investor-stock trader in the stock markets of Singapore, Hong Kong and Manila, among others.

Unfortunately, he is also a victim of rampant financial scams that dog the local bourse.

There are plenty of illegal schemes being perpetrated by unscrupulous, low-life characters involving the stock market, financial instruments, and investments.

Modus

One of them is the use of the logo and name of the Philippine Stock Exchange Inc. in corresponding with prospective victims, getting their trust and confidence, and luring them into parting away with their money for some dubious investments or get-rich-quick schemes.

In Donchian's case, an impostor who identified himself as representing the Philippine Deposit Insurance Corp. came up with official-looking documents from the PSE and inquiring about the engineer's shareholdings.

From this initial encounter, the scammer-fixer was able to maneuver his victim into shelling out money to facilitate various transactions with the false promise of huge profits.

Fake PSE logo

This is the reason why the PSE, under the management of President Ramon S. Monzon, issued a warning or reminder to the investing public about fraudulent attempts, offers and schemes that use the PSE's name and logo.

These schemes target mostly foreigners who have money and do not have a full grasp of Filipino way of conducting business.Besides, local investors and businessmen are more cautious and discerning.

The bourse warned that its name and logo were used in falsified documents that certify stock ownership of several listed shares, among others.

These documents also display the fees or charges to facilitate the liquidation of stock investments.

Memorandum

In a memorandum, the Philippine Stock Exchange said:"The PSE does not certify shareholdings in listed companies because the records of legal and/or beneficial owners are in the possession of the stock transfer agent appointed by the listed firms."

It was also clarified that fees and taxes incurred in the sale of stocks are deducted from the proceeds of the transaction.

Retail stock traders who have been following the day-to-day inadequacies of PSE management, starting with the Abra Mining (AR) debacle and why this mining firm was able to get away with fraud and dancing around the bourse's strict regulations, said that it is not enough to publicize warnings and announcements:the PSE should implement concrete action to stem the tide of stock market scams.

For all you know, these documents that bear the PSE name and logo may even be from the PSE itself, with some rouge personnel conniving with the low-life of the financial world. (With a report from D. S. Cagahastian)


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