Davao City police probes pyramiding scheme

Font Size

THE DAVAO City Police Office (DCPO) is looking into the report that some of its members have invested in Kapus Padatuon (Kapa), a group allegedly involved in the pyramiding scheme and promising to provide a 30% return on investment every month. Senior Supt. Alexander C. Tagum, DCPO chief, said his office has monitored the entry of members of the group in the city, although he has yet to receive any formal complaint against it. Mr. Tagum warned the public, including police officers, to stop investing in the scheme. “We know that the first, second and third tiers (of investors) will really have income,” he said, but the next groups “would become victims.” Davao City Mayor Sara Duterte-Carpio also raised a warning following reports that some groups involved in such schemes are even using her name to lure investors. Last month, the General Santos City Chamber of Commerce and Industry also made a similar call after it monitored drastic bank withdrawals due to the eagerness of some residents to invest in Kapa and two other similar corporations. The local office of the Securities and Exchange Commission said Kapa and these other groups have not secured any license to sell any financial instruments. Kapa, however, said in its social media account that it is not deceiving its members and its intent is to help alleviate poverty. It said the General Santos City business group is simply being manipulative as it does not “want us to grow and (become financially free).” — Carmelito Q. Francisco