Solon tells AMLC to look into accounts of 6 suspects in investment fraud

A lawmaker on Wednesday called on the Anti-Money Laundering Council to conduct an investigation and “freeze" the bank accounts of six officials of the Royal Manchester Five Trading Corp, which is allegedly involved in multi-billion peso investment fraud. “To protect what is left of the money put in by the investing public, the AMLC should take purposeful pre-emptive action against the company and its officers and their bank accounts," lone Catanduanes Rep. Joseph Santiago said. He also urged the government agency tasked to go after dirty money to check what banks these RMF officers have deposited the money they took from their victims, and find out whether these banks have been “diligent in reporting the suspicious transactions." No less than the National Bureau of Investigation confirmed the extent of the fraudulent transactions, and identified the RMF officials as president Cyrus Yap Hao and vice presidents Edwin Rosas, Renato San Juan, Joesedev Colina, Joseph Bualoy and Rowena Uy. RMF took peso and dollar deposits from more than 3,000 investors, who were promised monthly interest payments equal to anywhere from five to nine percent of the principal amount that they infused. This translates into an annual rate of return of 60 percent to 108 percent. The firm had been taking cash from investors, and initially managed to pay depositors the sky-high interest income they were promised. RMF managed to achieve this by using fresh cash put in by new investors, or funds rolled over by existing depositors, to cover the excessive interest payments, according to Santiago. The senior House member said investors were paid the monthly interest through post-dated checks issued to them by RMF, with offices at One San Miguel Condominium at the Ortigas business district in Pasig City. The checks, however, started bouncing in mid-February. Thus far, investigators have determined that RMF maintained checking accounts in at least two financial institutions - Asia United Bank Corp and Bank of Commerce. These accounts were used to pay the monthly interest to investors. RMF supposedly used currency-trading operations in Europe to front for its alleged fraudulent activities. NBI Director Nestor Mantaring earlier urged the victims of RMF, including celebrities such as professional basketball players and actors, to come forward and file affidavits. - GMANews.TV