SEC Adm. Case No.05-10-115 Amigo Falatu Y Gimaga Pilipinas Organisacion, Inc.

Securities and Exchange Commission SEC Bidg. EDSA, Greenhills, Mandaluycng City Republic of the Philippines

In the Matter of

AMIGO FALATU Y GIMAGA PILIPINAS ORGANISACION, INC. SEC Admin. Case No. 05-10-115

For: Revocation of Certificate of Incorporation

ENFORCEMENT AND PROSECUTION DEPARTMENT, Petitioner.

DECISION

the corporation can do under Sec. 6 par. (I) (2) of P.D. No. 902-A, as amended. Department (`EPD", for brevity) on 25 May 2010, praying for the revocation of the corporate registration of AMIGS FALATU Y GIMAGA PILIPINAS ORGANISACION, INC. ('AMIGO", for brevity) on the ground of serious misrepresentation as to what 'This resolves the petition, filed by the Enforcement and Prosecution

on 9 April 2008 under SEC Registration No. CN200805198, with principal office address at Bik. 13, Lot 74, Towerville, San Jose Del Monte, Buiacan. Summons were petition within the prescribed period of fifteen (15) days from notice. Thus, we resolve the petition based on its allegations supported by substantial evidence. personally served upon the respondent and its officers on 2 June 2010. However. without any explanation, respondent failed to file any comment or answer to the Respondent AMIGO is a non-stock corporation duly registered with the SEC

AMIGO's Articles of Incorporation indicate that its primary purposes are:

1. To uplift the living conditions of members by assisting them in the establishments of livelihood facilities, services and enterprise. 2. To encourage the members in the effective utilization improve the living condition in the community. of local resources in livelihood activities and thereby

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3. To acquire loans or other financial accommodations

in order to finance productive livelihood enterprises. from the government and private lending institutions

4. To assist and support the member in the promotions of their business.

directors are: Its Articles of Incorporation also indicate that its incorporators and first

Name Nationality. Residence 1. George G. Lapore 2. Leny Barcarse Jane C Filipino Filipino Del Monte, Bulacan Blk. 60, Lot 32, Area 1, Sto. Nino, San Jose Del Monte, Bulacan Blk. 13, Lot 74, Towerville, San Jose

3. Andrew M. Gonzalez Filipino Blk. 13, Lot 74, Towerville, San Jose Del Monte, Bulacan 4. Faviola L. Tusay Filipino Del Monte, Bulacan Blk. 13, Lot 74, Towerville, San Jose

5. Linda L. Hembra Filipino Del Monte, Bulacan Blk. 13, Lot 74, Towerville, San Jose

alleging that it collects money from its members with a promise of One Million Pesos (Php1,000,000.00) in return. On 18 March 2009, EPD received a query from Ronnie Baura about AMIGO

query on behalf of his aunt. Pemie Z. Fornal, who is concerned with the subject When Baura was called for a conference, he explained that he made the

corporation.

On 15 April 2009, an EPD investigation team went to C.P.'Garcia, Area 17

from the Field Investigation Report: U.P. Campus, Diliman, Quezon City to meet with Fornal. The following is an excerpt

neighbors were invited by members of AMIGO who frequented their place to look for new member. From what Ms. Pemie could remember, she paid four hundred pesos (400.00) and in return an Identification Card was given to her representing her membership in the "According to Ms. Pemie Z. Fornal, she and some

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organization (attached herewith). In addition, she was further enticed to pay one thousand pesos (1,000.00) to

did by paying said amount. Other than those collections, the constitution of the organization for fifty-seven pesos only a copy of the Philippine Constitution with a print of the word'"AMIGO" apparent on the face of the cover. become an officer of the organization which, in fact, she she was given a copy of a handbook allegedly containing (57.00), but upon scrutiny of the team, said handbook is (Said handbook is attached herewith)

Pesos (1,000,000.00). The only requirement is, for member and/or officers to regularly attend meetings to the organization is the promise of receiving One Mitlion called by heads of the organization. These gatherings or meetings are usually held in Bulacan and Subic as relaid (sic) to the team by the complainant. In return for all these collections or contributions

definite answer. On the course of the conversation, meeting piace but the compiainant .could not give a some residents who were around listening to the AMIGO, some personalities soliciting and inviting the conversation then informed the team that prior to The team inquired as to the address of the

recognize under the name "Almirante.' residents to -become members were also part of an organization named "Triple A", allegedly run by the same individuais, one which they "LSM", and "AMIGO"

hard 'earned money in exchange for the promise of One Million Pesos (Php1,000,000.00). They merely reiterated what they earlier told the team on 15 Apri 2009. Bausin, Zenaida Velez, and Alicia Fernandez, who were aiso duped to part with their On 22 Apri 2009, Fornal appeared before the team, together with Delia V.

those who regularly visit their neighborhood and invite its residents to become Linda Acosta and Carmen Domingo were identified by complainants as among

Acosta and Domingo to appear before the team on 4 June 2004 to clarify the members of AMIGO. A Notice of Conference dated 28 May 2009 was sent to both

Andrew Gonzalez, Favioia T. Gonzalez and Teresita Nisla. accusations about AMIGO. On the said date, Acosta appeared, accompanied by

The following is an excerpt from the Summary of Proceedings/Conference:

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that is distributing these prosperity cards; that AMIGO entices by telling the poor (less-fortunate) that money they become members of Salvador de Corazon; are accepting members without charges except .the prosperity card that has a fee; that AMIGO does not collect fees; that Salvador de Corazon is the organization will be awarded to them; that he is the LEADER of the group AMIGO; that on Dec. 9, 12, and 15, 2007, the distributes theses prosperity cards; that she entices prosperity cards; that AMIGO can be considered an allied promise should have materialized; that SALVADOR de Corazon promises one million (Php1,000,000.00) pesos if TERESITA Y. NISDA also an officer of AMIGO also prospect members to become members of AMIGO and of Salvador de Corazon; that AMIGO is focused on assisting Salvador de Corazon especially in distributing these organization of Salvador de Corazon." "x x x that according to Mr. Andrew Gonzalez they

petition. Finding the respondents' explanation as untenable, EPD filed the present

902-A, as amended, provides: Section 6, paragraph (1) sub-paragraph (2) of-Presidential Decree (PD) No

jurisdiction, the Commission shall possess the following powers: "Section 6. In order to effectively exercise such

X X X X X X X X X

corporations, partnerships or associations, upon any of the grounds provided by law, including the foilowing: hearing, the franchise or certificate .of registration of I) To suspend, or revoke, after proper notice and

X X X X X X X X X

or damage to the general public: corporation can do or is doing to the great prejudice of 2. Serious misrepresentation as to what thel

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X X X XX X X X X

for a fee on the promise that these members will receive One Million Pesos the living conditions of members by assisting them in the establishment of livelihood facilities, services and enterprises. However, based on the substantiated allegation of the complainants, it appears that AMIGO is more interested in recruiting members (Php1,000,000.00). AMIGO was organized purportedly for philanthropic purposes, such as to uplift

de Corazon which is an allied organization of AMIGO. But the records of the Commission do not show that Salvador de Corazon is a registered entity. AMIGO failed to prove where this Saivador de Corazon will get the One Million Pesos to be distributed to the members of AMIGO. Apparently, the One Million Pesos (Php1,000,000.00) will come from Saivador

AMIGO entices the people by telling the poor that money will be awarded to them and thus a total lie. During the conference on 4 June 2009, which was attended by the corporations' incorporators and officers, namely: Andrew Gonzalez, Faviola T Gonzalez, and Teresita Nisda, they affirmed the allegations of the complainants that once they become members. The promise of One Million Pesos to the members of AMIGO is without basis

source of funds or financial assistance, it is hard to believe that AMIGO can give One contribution of onfy Five Hundred Pesos (Php500.00). Hence, without proof of any Million Pesos (Php1,000,000.00) to its members. Moreover, the Articies of Incorporation of AMIGO shows that it has a capital

April 13, 2000. In this case, the Commission En Banc ruled: Global Foundation, Inc? whose registration was revoked by the Commission on The modus operandi of AMIGO is very similar to the case of Diamond Star

the SEC Davao Extension Office (SEC-DEO) it was revealed that DSGFI's modus operandi' is the estate of one Atty. Filomeno Amisola Traya. These recruitment of members who are promised a future participation in the distribution of the alleged vast "x x x However, upon investigation conducted by

08-99-0005. April 13, 2000. In the Matter of Diamond Star Giobal Foundation, Inc. SEC-SICD, ADMINISTRATIVE CASE NO

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hopeful persons and other prospective members are recruited by coordinators of the subject corporation who exact "Twenty (P20.00) Pesos from each applicant Hundred (P500.00) Pesos for the said members' ID ailegedly for the latter's. identification card. Nevertheless, the SEC-DEO received complaints that some DSGFI coordinators are charging as much as Five Card.

X X X X X X X X X

to prove the actual existence of the fabled and incredibly vast wealth being offered or presented as the source .of the funds for loan and/or financial assistance and trustees failed to present any evidence whatsoever, which they promised to prospective members upon The subject corporation, its responsible officers

payment of the Twenty (P20.00) Pesos membership fee.

wealth has no material existence whatsoever "and is merely a fictional contrivance in support of the scheme or modus operandi adopted by the subject corporation. As a consequence thereof, some 1.5 to 3 million Filipinos are anxiously waiting for the promised fortune which will provide them with the much needed seed money to counter the rising cost of living during these critical times, but alas, their waiting will only be in vain for these millions of our countrymen had pinned chimerical yarn created by the responsible founders] distribution of the undeterminable "Don Estrella' their hope for economic alleviation on nothing but a The records divuige that this alleged Estrella

Foundation, Inc. officers, trustees and agents of Diamond Star Global

its responsible founders, officers and trustees are The misrepresentations committed by DSGFI and

reprehensible indeed, but what is more abominable is that the modus operandi of DSGFI targets as quarry the poor and marginalized of our countrymen, giving

fortune in exchange for a seemingly paitry amount. millions of them false and unattainable hopes of instant Moreover, considering the number of people that had been victimized by the scheming DSGFI honcho Deima

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moral depravity of the peopie behind DSGFI and those tantamount to suffering a disease pervade the body of effect of: the serious misrepresentation cannot be diminished. This monstrous chicanery reflects on the perpetrating this debauched modus operandi, and to Estrella-Traya and her cohorts, the great extent of the allow this organized scam to. persist would be an offense of the government to its. people as it is our society.

which allegedly enable the bearer to obtain financial misrepresentation as to what the corporation can do or is doing to the damage and prejudice of the public, in direct violation of paragraph L (2)* Section 6 of Presidential Decr'ee No. 902-A, as amended by Presidential Decre: No. 1758. Moreover, the act of issuing membership cards signifying interest or participation in: a non-existent estate-partition scheme assistance from DSGFI in the amount of One Million (P1,000,000.00) Pesos, violates .Batas Pambansa Big. penalizes issuance of securities to the public without prior .registration with the Securities and Exchange 178, the Revised Securities Act, which govern and Commission. Of the subject corporation constitutes Accordingly, such acts of the officers and trustees serious

an erring corporation." ground for the revocation of the corporate franchise ofl A Commission of serious misrepresentation is a

of the organization by paying additional One Thousand Pesos (Php1,000.00) is another form of misrepresentation. This is in direct contravention of AMIGO's By Likewise, the act of AMIGO in further enticing its members to become officers

from among themseives. Hence, there is no doubt that in luring its members to members. become officers, AMIGO merely wants to extort more money from its unsuspecting Laws which ciearly provide that its officers must be elected by the Board of Trustees

the public, in direct violation of 3ec. 6 par. i (2) of P.D. 902-A, as amended. Thus, the Commission must the revoke AMIGO's Certificate of Incorporation for the protection of the investing public. misrepresentation as to what it can do or is doing to the damage and prejudice of From the. foregoing, it is clear that AMIGO committed serious

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hereby REVOKED. esPOndent AMIGO FALATU Y GIMAGA PILIPINAS ORGANISACION, INC. iS WHEREFORE, premises considered, the Certificate of Incorporation of

Barcarse, Andrew M. Gonzalez, Favioia L. Tusay and Linda L. Hembra, are hereby placed in the Commission's watch list. Further, the incorporators of AMIGO, namely: George G. Lapore, Leny Jane C.

SO ORDERED

Mandaluyong City, Philippines 15 July 2010.

FE B. BARIN Chairperson

Ma9& MA JuANItA E. CUeT Commissioner RAUL J. PALABRICA Commissioner

MANUEL HUBERTO B. GAITE Commissioner ElAdIO M jALA CommisSioner

*on official business