BBM scam group still active — SEC

The Securities and Exchange Commission (SEC) has warned the public about a racket trying to pass itself off as having the imprimatur of the government to collect money from the public.

Bagong Bansang Maharlika (BBM) International Inc.’s corporate registration was revoked in November last year due to its illegal solicitation of investments, the SEC said.

Despite the withdrawal of its license, the SEC found that BBM International continued to operate in certain parts of the Visayas and Mindanao.

BBM International collects membership fees from residents of communities, promising to provide food security, free education, free hospitalization, cash assistance, and livelihood to them.

It had also extended its swindling operation overseas.

The group makes use of President Ferdinand Marcos Jr.’s image in its marketing materials, creating the false impression its programs are legitimate and sanctioned by the administration.

The SEC slapped charges of violation of Section 44 of Republic Act 11232, or the Revised Corporation Code (RCC), against the group. That provision of the law provides that no corporation shall possess or exercise corporate powers other than those conferred by the RCC or by its articles of incorporation.

Racket continues

The SEC had issued an advisory against BBM International back on 28 August 2023.

The SEC warned that salesmen, brokers, dealers, agents, representatives and promoters of the group are liable under Section 11 of Republic Act 11765, or the Financial Products and Services Consumer Protection Act, as well as under Section 28 of Republic Act 8799, or the Securities Regulation Code, under which they may be fined up to P5 million for each count, or imprisoned for up to 21 years, or both.

Recruitment to the group intensifies before an election. Many poor people from villages in Davao Oriental, Davao de Oro, and Davao del Norte were gypped into joining the group.

Recruiters comb the rural areas promising residents as much as P500,000 each.

They are told the money would be sourced from the confiscated ill-gotten wealth of the Marcos family or the hidden fortunes of the Marcoses.

They were promised they would start receiving their shares after President Ferdinand Marcos Jr. assumed the presidency.

A vendor said she invested money in the group because nearly all the people in her community did.