Investment Scam Complaint Guide (Philippines)
Updated as of 13 June 2025. This article is for general information only and is not a substitute for individualized legal advice.
1. Understanding Investment Scams
| Common Local Terms | Typical Pitch | Red-flags |
|---|---|---|
| “Double your money” / “Pay-in, payout” | Fixed, above-market returns in 15–90 days | No secondary license from SEC |
| Pyramid / “Networking” | Commissions for recruiting downlines | Emphasis on recruitment over product |
| Cryptocurrency or Forex “robots” | Guaranteed daily % gains, remote “trading” | Unregistered platforms, no transparency |
| “Tokhang-style buy-back” on agricultural products, luxury bags, etc. | You “co-own” goods then get buy-back plus profit | No actual inventory, circular payouts |
Key takeaway: Any public invitation to invest must come from an entity that is (a) SEC-registered and (b) has a secondary license to issue securities or sell investment contracts (Securities Regulation Code, R.A. 8799, §8). Lack of either is prima facie illegal.
2. Immediate Steps if You Suspect a Scam
Stop further payments – Do not reinvest to “unlock” funds.
Collect evidence
- Receipts, deposit slips, GCash/PesoNet transfers
- Screenshots of chats, Facebook posts, marketing decks
- Contracts, promissory notes, offering memoranda
List the persons involved
- Upline recruiters, founders, local “branch managers,” social-media page administrators
Secure devices – Do not wipe chat history; preserve metadata.
Talk to co-investors – Class or group action is more efficient, especially for syndicate/large-scale cases.
3. Where and How to File Complaints
3.1 Administrative Route – Securities and Exchange Commission (SEC)
| Division | Jurisdiction | Outcome |
|---|---|---|
| Enforcement and Investor Protection Dept. (EIPD) | Unregistered investment solicitations, violations of the SRC | Cease-and-Desist Order (CDO); fines up to ₱5 million plus ₱10,000/day continuous violation; criminal referral to DOJ |
| Markets & Securities Regulation Dept. | Licensed entities breaching disclosure or sales rules | Suspension/revocation of license; administrative fines |
Filing mechanics
- Format: Notarized Complaint-Affidavit with annexed evidence.
- Filing fee: None for victims (per SEC Memorandum Circular 4-2016).
- Service: SEC serves Show-Cause Orders; respondents answer within 5 days.
- Timeline: CDOs may issue ex parte within 24 hours if “imminent public damage” (§64, SRC).
3.2 Criminal Route
| Offense | Law | Elements | Penalty |
|---|---|---|---|
| Selling unregistered securities / acting as broker without license | SRC §§8, 28, 73 | Public offering, no secondary license | 7–21 years and/or ₱50,000–₱5 million fine |
| Estafa | Rev. Penal Code art. 315 | Deceit + damage | Depends on amount (post-RA 10951 thresholds) – up to prision correccional medium (6 yr-8 mo) |
| Syndicated/large-scale estafa | P.D. 1689 | (i) ≥5 offenders or (ii) ≥20 victims/ ≥₱10 million lost | Life imprisonment |
| Cyber-estafa | R.A. 10175 | Fraud via computer system | Same base penalty +1 level |
| Fraudulent solicitation of banking products | R.A. 11765 (FPSCPA) | Misleading sale of “investments” by banks | ₱50,000–₱2 million + disqualification |
Where to file
| Office | Coverage | Practical tips |
|---|---|---|
| Department of Justice – Office of the City/Provincial Prosecutor | Primary venue for Estafa/SRC violations | Attach SEC advisory to complaint to show evident bad faith |
| NBI Anti-Fraud Division | Large, nationwide or cyber-based scams | NBI may do parallel tracing of assets |
| PNP Anti-Cybercrime Group | Online wallets, phishing elements | Bring printed screenshots and device for forensic imaging |
3.3 Civil Route
Rescission or annulment of contracts under Civil Code arts. 1318 et seq.
Damages under art. 1170 (fraud) and art. 2199 ff.
Class suit (Rule 3, §12, 2019 Rules of Civil Procedure) when common interest.
Asset preservation / freeze through provisional remedies
- Preliminary Attachment (Rule 57)
- AMLC freeze order (R.A. 9160 §10) upon SEC referral
4. Complaint Drafting Checklist
Caption & Parties – Identify all individual masterminds, marketing agents, nominee corporations.
Jurisdictional allegations – State that acts occurred in (city); monetary damage; use of online platform (cybercrime).
Narrative of Facts – Chronological, stick to who, what, when, where, how much.
Elements of offense – Map each fact to statutory element (e.g., “respondents publicly offered 30% monthly returns without SEC secondary license, violating §8 R.A. 8799”).
Damages – Principal lost + interest + moral/exemplary damages.
Prayer –
- Criminal: file Informations in court
- Administrative: issue CDO, impose fines
- Civil: order restitution/damages, freeze assets
Verification & Certification against Forum Shopping – Required for civil actions; good practice for administrative complaints.
Supporting documents – Label as Annex “A,” “B,” etc.; include SEC Advisory (if any) as prime exhibit.
5. Procedural Timelines (Indicative)
| Stage | Administrative (SEC) | Criminal (Prosecutor) | Civil |
|---|---|---|---|
| Filing → Summons/Order | 1–5 days (ex parte CDO possible) | 5–15 days | 3–7 days |
| Answer/Counter-Affidavit | 5 days (extendible once) | 10 days (extendible) | 30 days for Defendant to Answer |
| Preliminary Investigation / Hearings | Paper-based; resolution in 60–90 days | Hearings in 30-day cycles; DOJ resolution 90-120 days | Judicial dispute resolution (optional) within 30 days |
| Decision / Filing Information | SEC En Banc on appeal, 60 days | Information filed in trial court; warrant issuance | Pre-trial in 30 days, trial 12-month period (OCA Circular 83-2023) |
Note: Real-world durations often stretch due to backlogs; using a lawyer and constant follow-ups matter.
6. Evidence Tips Specific to Philippine Platforms
| Platform | How to Authenticate |
|---|---|
| GCash / Maya receipts | Download PDF or print screen; ask GCash for transaction history certificate (₱150). |
| Facebook pages | Use Meta “Download Your Information” feature; include URL, date/time stamp; notarize printouts via e-Notary Rule 2021-12. |
| Zoom/Meet webinars | Retain original .mp4 recording; get two witnesses to attest content. |
| Viber/Telegram chats | Export chat to .zip (Settings → More → Export Chat) and hash using SHA-256 (can be notarized). |
7. Coordinating With Other Victims
- Form a “victim group” chat – Strength in numbers triggers PD 1689 (syndicated estafa).
- Pooling legal funds – Fee-sharing agreements with counsel; consider “success fee” caps under Code of Professional Responsibility 2023.
- Appoint spokesperson for press and agency dealings so narratives stay consistent.
8. Recovering Assets
| Channel | What It Does | How to Trigger |
|---|---|---|
| Asset Preservation Order (APO) under AMLA | Freezes bank/crypto accounts for 20 days (extendible by court) | SEC/NBI files suspicious transaction report to AMLC |
| Civil Forfeiture (Rule on Civil Forfeiture, A.M. No. 05-11-04-SC) | Government seizes property derived from unlawful activity | After conviction or independent action |
| Restitution in Criminal Judgment | Court orders return of money/property to victims | Upon conviction; enforce via writ of execution |
| Alternative Dispute Resolution | Mediation/conciliation can include repayment plan | Under R.A. 9285; faster but voluntary |
9. Prescription (Deadlines to Sue)
| Cause of Action | Prescriptive Period | Computation |
|---|---|---|
| Criminal – SRC violations | 5 years (§77, SRC) | From discovery of offense |
| Criminal – Estafa | Varies with penalty (art. 90, RPC): typically 15 years for prision correccional max | From day of commission or discovery (if fraud concealed) |
| Civil Actions | 4 years (fraud) or 6 years (quasi-contract) | From discovery |
| Administrative (SEC) | No explicit limit; follow SRC 5-year rule as guide | From discovery |
10. Choosing a Strategy
| Scenario | Recommended First Move |
|---|---|
| Scam still operating, continues recruiting | Administrative complaint to SEC → CDO stops scheme quickly |
| Perpetrators have fled, many victims, big losses | NBI + DOJ criminal complaint to trigger warrants & freeze |
| You want quick refund, small group | Civil case + mediation may pressure early settlement |
| Online-only scam with unknown owners | Cyber-crime complaint → subpoena in rem against domain hosts, payment gateways |
11. Practical Tips From Local Experience
- Act fast: Perps often empty accounts within 48 hours of first rumor.
- Don’t sign “quit-claim” deals: Some scammers offer partial refunds if you withdraw complaints—courts will still consider these void for vitiated consent.
- Use SEC Advisories as leverage: Present them to barangay officials and lenders to cut grassroots funding channels.
- Beware of “recovery scams”: Third parties claiming they can retrieve money for a fee are often secondary scams.
12. Frequently Asked Questions
Q1. Can I file both SEC and criminal cases? Yes. Administrative, criminal, and civil remedies are cumulative (SRC §63).
Q2. Will filing a complaint get my money back? Recovery is not automatic; it depends on asset tracing and execution. Filing early increases chances before funds dissipate.
Q3. Can foreign nationals be charged? Yes. Philippine courts have jurisdiction if the effects (losses) happened here, and cybercrimes are borderless.
Q4. What if the amount is below ₱10k? You may still file but weigh cost-effectiveness; barangay mediation then Small Claims (A.M. 08-8-7-SC) could suffice.
13. Template: Basic Complaint-Affidavit (Outline)
Republic of the Philippines Department of Justice Office of the City Prosecutor – Quezon City
JOSE L. CRUZ, Complainant, – versus – JUAN DELA CRUZ, MARIA REYES, et al., Respondents.
x————————————x
COMPLAINT-AFFIDAVIT
- I, Jose L. Cruz, Filipino, of legal age, etc., state:
- On 5 January 2025, respondents enticed me to invest… [facts]
- Respondents publicly offered 30 % monthly returns without SEC secondary license, violating §8 R.A. 8799.
- Attached: Annex “A” – SEC Advisory dated 04 Jan 2025; Annex “B” – GCash receipts; …
- Respondents thereby committed Estafa under art. 315 (2)(a) RPC, and Selling Unregistered Securities under §8, 73 SRC.
PRAYER: Wherefore, I respectfully pray that Informations be filed…
IN WITNESS WHEREOF, I affix my signature…
(Include Verification & Certification vs. Forum Shopping if civil.)
14. Professional Fees & Costs (Typical 2025 Metro Manila Rates)
| Service | Range |
|---|---|
| Drafting and filing SEC complaint (solo victim) | ₱10,000 – ₱25,000 |
| Criminal complaint incl. affidavits & PI hearings | ₱25,000 – ₱80,000 |
| Civil action up to ₱5 million claim | Filing fee ≈ 1.5 % of amount + ₱10,000 legal research |
| Contingency/trust retainer (class suit) | 15–25 % of recovered amount |
(Always execute a written engagement letter; check VAT.)
15. Key Statutes & Rules to Read
- R.A. 8799 – Securities Regulation Code (SRC)
- P.D. 1689 – Penalty for Syndicated/ Large-Scale Estafa
- Revised Penal Code arts. 315, 316, 318
- R.A. 10175 – Cybercrime Prevention Act
- R.A. 11765 – Financial Products and Services Consumer Protection Act
- R.A. 9160 – Anti-Money Laundering Act (as amended)
- 2021 Rules on Electronic Evidence (A.M. 01-7-01-SC)
16. Conclusion
Investment scam complaints in the Philippines involve three parallel tracks—administrative (SEC), criminal (DOJ/NBI/PNP), and civil (courts). Swift filing, organized evidence, and coordinated victim action significantly boost the odds of both stopping the scam and recovering losses. When in doubt, consult a securities-litigation or white-collar crime practitioner to map the best strategy for your specific case.
Prepared by: ___ (You may freely reproduce with attribution.)