A practical legal article for victims, whistleblowers, in-house counsel, and investigators

1) Snapshot

“Pyramid” or chain-recruitment schemes are illegal when they sell no real product or service (or a token one) and primarily pay returns from recruitment. In the Philippines, these schemes often violate the Securities Regulation Code (SRC), the Revised Penal Code (estafa/syndicated estafa), and other special laws (e.g., Cybercrime Act for online promotions, Financial Products and Services Consumer Protection Act, Anti-Money Laundering Act for proceeds).

Good news: You can—and should—file in multiple venues, because administrative, criminal, and civil tracks can proceed in parallel. Below is your roadmap.

2) What law typically applies (quick map)

SRC (R.A. 8799): selling unregistered securities, fraud/manipulation, and unlicensed selling.
Revised Penal Code: estafa (Art. 315) and syndicated estafa (if committed by five or more organizers as a syndicate to defraud).
R.A. 10175 (Cybercrime): online posts, websites, social media recruitment, e-wallet solicitations.
R.A. 11765 (Financial Consumer Protection): abusive or fraudulent financial product marketing.
Consumer Act and other sectoral laws (Insurance, Lending, etc.) if the scam is disguised as those products.
AMLA (R.A. 9160, as amended): proceeds may be subject to freeze/forfeiture.

3) Where to file: the complete routing guide

A) Securities and Exchange Commission (SEC)

Best for: Anything that looks like investment solicitation, “packages” with guaranteed returns, “IPO-style” offers, referral bonuses.
Office to approach: Enforcement and Investor Protection Department (EIPD), or the SEC Extension/Regional Office where you reside or where solicitation occurred.
Relief you get: Cease-and-desist orders, show-cause orders, criminal referral to prosecutors, and public advisories to warn others.

File here if: There’s recruitment/promises of returns; the outfit is not registered to sell securities; or licenses/secondary registration are missing.

B) Department of Justice / Office of the City or Provincial Prosecutor

Best for: Criminal complaints for estafa, violation of the SRC, cybercrime components.
Venue (criminal):
- For liberalized investment fraud/SRC: where any element occurred (place of solicitation/payment, your residence when induced, location of posts if tied to a specific place).
- For estafa: where payment or deception took place, or where offender was found.
Relief you get: Prosecutor’s probable cause determination; filing of Information in court.

File here if: You want criminal prosecution of organizers, recruiters, and endorsers (as principals/conspirators).

C) National Bureau of Investigation (NBI) – Anti-Fraud / Cybercrime Divisions

and Philippine National Police (PNP) – Anti-Cybercrime Group (ACG) / Criminal Investigation and Detection Group (CIDG)

Best for: Forensics, intake of complex cases, coordinated raids, subpoenas for platform data, tracing wallets and accounts.
Relief you get: Case build-up, digital evidence collection, joint operations, and referrals to prosecutors/SEC.

File here if: The scam is online, cross-border, uses e-wallets/crypto, or you need technical evidence (IP logs, device extractions).

D) Bangko Sentral ng Pilipinas (BSP) / Insurance Commission (IC) / DTI

BSP: If banks/e-money issuers, remittance agents, or lending/fintech fronts are involved (e.g., unlawful payments funneling, unregistered EMIs).
Insurance Commission: If the “investment” is disguised as insurance/pre-need.
DTI / Fair Trade / Consumer Complaints: If pitched as retail/MLM with deceptive sales (note: real MLM is legal; pyramiding—pay-to-recruit—is not).

E) Anti-Money Laundering Council (AMLC)

Best for: Freeze/forfeiture of proceeds in banks/e-wallets (usually through law-enforcement referral).
Relief you get: Freeze orders (ex parte) via the Court of Appeals; suspicious transaction analysis to stop fund flight.

F) Civil courts (RTC / first-level courts; and small claims within the current threshold)

Best for: Recovery of money (rescission, damages, unjust enrichment), writ of preliminary attachment to secure assets early, replevin for seized goods.
Venue (civil): Where you reside or where the defendant resides, or where the cause of action accrued.
Small claims: Sue without a lawyer up to the prevailing small-claims jurisdictional amount set by the Supreme Court.

4) Which case to bring (and against whom)

SRC criminal violations: against organizers, officers, recruiters, and influencers who induced the sale of unregistered securities or defrauded investors.
Estafa / syndicated estafa: when deceit caused you to part with money/property; syndicated applies if ≥5 organizers formed a syndicate to defraud (higher penalties; RTC jurisdiction).
Cybercrime: tack on when the means was a computer system (websites, social platforms, chat apps).
Administrative: against the entity and its key persons for SEC sanctions; against regulated institutions (BSP/IC jurisdiction) when complicit.

5) Evidence package (what to bring everywhere)

Your sworn narrative: dates, persons, how you were induced, amounts, channels used.
Proof of payment: deposits, e-wallet screenshots, receipts, crypto tx IDs, remittance slips.
Promotional materials: PDFs, screen captures (full page with URL/time), chat logs, voice notes, event photos, referral codes.
Identity of actors: IDs/business cards, corporate records, domain/handle ownership leads, plate numbers, bank account names.
Victim matrix: list of other investors (names, amounts, contact details) and your authority if filing as a group.
Chain-of-custody: how digital files were obtained/preserved (avoid editing; keep originals).
Loss/damage proof: bank statements, canceled plans, opportunity loss (for civil damages).

6) Step-by-step filing playbooks

A) SEC administrative complaint

Prepare a complaint-affidavit with annexes (evidence bundle).
File at the EIPD/Regional Office.
Cooperate for clarificatory hearings; seek cease-and-desist and public advisory issuance.
Ask for referral to the prosecutor for criminal action under the SRC.

B) Criminal complaint (prosecutor’s office)

File a sworn complaint-affidavit + annexes; identify all organizers/recruiters.
Subpoena issues; respondents file counter-affidavits; you may file reply.
Prosecutor resolves probable cause → files Information in court; prepare for warrant/bail, arraignment, trial.

C) Law-enforcement intake (NBI/PNP)

Walk in or coordinate; submit digital evidence for forensics.
Request subpoenas/letters to platforms, preservation orders, and account tracing.
Allow joint case build-up; they can endorse to SEC/DOJ and execute operations where warranted.

D) Civil case / asset protection

File for rescission/damages with an ex parte application for attachment (showing fraud and risk of dissipation).
Serve summons promptly; coordinate with AMLC and law enforcement if asset freezing is viable.
Consider small claims if your loss fits the prevailing cap.

7) Venue and jurisdiction nuances (make or break)

Multiple victims, multiple places: You may file where any element occurred (solicitation, payment, online targeting, your residence when induced).
Corporations as offenders: Criminal liability attaches to responsible officers who participated; civil recovery may proceed against the entity and natural persons.
Barangay conciliation: Not required for SRC crimes and generally inapplicable to large-penalty offenses like estafa/syndicated estafa; also not required versus corporations or when parties reside in different cities/municipalities.

8) Special topics

MLM vs. Pyramid: Legitimate MLM pays from product sales to end-users; pyramids pay for recruiting or require inventory loading without genuine retail demand. “Entry fees” with promised ROI, “staking,” or “packages” tied to referrals are red flags.
Influencers and uplines: Those who publicly induce investments can be liable as principals by inducement or for aiding/abetting SRC violations and estafa.
Cross-border ops: Use NBI/PNP cyber units for requests to foreign platforms and mutual legal assistance coordination.
Data privacy: If your ID or contacts were misused for spamming, file a privacy complaint against the promoter for unauthorized processing—a parallel pressure point.
Chargebacks & e-wallet disputes: File merchant disputes quickly; pair with police blotter/case number to strengthen reversal requests.

9) Timelines & prescription (don’t sleep on your rights)

SRC crimes / estafa: count from commission/discovery; act immediately to avoid prescription issues.
Civil actions: filing interrupts prescription; preserve your claim early with a well-pled complaint.
Asset flight risk: seek attachment (civil) and freeze (AMLC route) as early as legally possible.

10) Model, fill-in-the-blanks complaint outlines (condensed)

A. SEC Complaint (administrative)

Complainant: [Name, address, ID] Respondents: [Entity, officers, recruiters] Facts: On [dates], respondents solicited “investments” promising [ROI/%/tenor] payable from [recruitment/unspecified trading]. I paid ₱[amount] via [bank/e-wallet/crypto], Annexes “A–__”. Grounds: Selling unregistered securities; fraudulent transactions; unlicensed selling under the SRC. Prayer: Issue cease-and-desist, commence administrative action, and refer for criminal prosecution.

B. Criminal Complaint-Affidavit (Prosecutor)

Offenses: Estafa/Violation of SRC/[Cybercrime] Narrative: [Who said what, where posted, how induced, dates, payments, recruiter/upline chain]. Annexes: Proof of payment, chats/posts, identity links, victim matrix. Prayer: Find probable cause and file Information; issue hold-departure lookouts (through proper channels).

C. Civil Complaint (RTC / Small Claims where applicable)

Cause of Action: Rescission, damages, unjust enrichment. Allegations: Fraudulent inducement; failure to deliver lawful consideration; continuing harm. Relief: Refund ₱[amount] + damages, interest, and writ of attachment.

11) Practical checklists

Victim / Complainant

Save original files, make read-only copies; note URLs and timestamps.
Prepare sworn affidavit; compile payments and comms.
File at SEC (EIPD); open NBI/PNP case; submit to Prosecutor for criminal track.
Consider civil suit/small claims; apply for attachment.
Coordinate for AMLC freeze through law enforcement; monitor banks/e-wallets.
Join with other victims to strengthen probable cause and recovery.

In-House Counsel / Compliance (if platform or bank)

Trigger fraud response; preserve logs; file STR/CTR as warranted.
Cooperate with lawful orders; freeze suspect accounts per policy/law.

12) Bottom line

A pyramid scam is a multi-law problem; your response should be multi-track:

SEC for cease-and-desist and regulatory hammer,
Prosecutor/DOJ for criminal charges (SRC, estafa, cybercrime),
NBI/PNP for forensics and operations,
BSP/IC/DTI for sector-specific abuse,
Civil courts (and AMLC) to recover and freeze assets.

Move fast, file in the right venues, and preserve evidence. That’s how you protect yourself, warn the public, and maximize your chances of getting money back.

This article offers general legal information for Philippine practice and is not a substitute for tailored advice on a specific scheme or defendant.