Police have arrested 63 people, including a foreign national accused of being the mastermind, for their involvement in a large-scale online investment scam operating out of Pasig City, officials said Tuesday.
Maj. Gen. Wilson Asueta, chief of the Philippine National Police Anti-Cybercrime Group (PNP-ACG), said cybercop operatives executed a warrant to search and examine computer data 20 May.
The raid resulted in the arrest of the suspects, including a 55-year-old foreigner identified by the alias “Boss.”
Reports said that the operation was launched after several victims reported being deceived into investing money through online advertisements. They were later contacted by individuals posing as trading assistants and investment advisers.
Asueta said the syndicate used an organized network of marketing personnel, telesales agents, and retention agents to persuade victims to invest in Xtrade, an online trading platform.
The workers used scripted communications on messaging apps and social media platforms to lure targets.
Asueta added that the the group also used fake advertisements featuring doctored photos of celebrities to promote the scheme.
According to the Securities and Exchange Commission, neither the Xtrade trading platform nor its operator, KLSJ Call Center Services, is registered with the government. Neither entity has the authority to solicit investments or handle securities.
“These are employees, but they actively participated in the scheme, which is why they were included in the arrest,” Asueta said, citing that the operation lacked any legal corporate personality in the Philippines.
An investigation revealed that the suspects used fake identities, manipulated victims into continually depositing money, and tightly controlled withdrawal requests to create the illusion of legitimate trading activities.
The suspects face a gray list of criminal charges, including computer-related fraud, misuse of devices, and aiding and abetting cybercrime under the Cybercrime Prevention Act of 2012.
They are also accused of violating the Securities Regulation Code, the Financial Products and Services Consumer Protection Act, the Anti-Financial Account Scamming Act, and the Revised Penal Code for using fictitious names.
Following the raid, investigators discovered that the foreign suspect also had an outstanding arrest warrant issued by the Pasig City Regional Trial Court.
The warrant cites 70 counts of tax evasion and 70 counts of failing to file tax returns under the National Internal Revenue Code, with a total recommended bail set at P8.4 million.