JEDDAH, 22 May 2004 — An obsession to get rich fast by engaging in risky and illegal business transactions is all it takes to lose your hard-earned money also quickly.
Vice Consul Jose V. Jacob made this reminder to Filipino workers in the Kingdom amid recent reports that many have fallen for a scam involving pre-paid mobile phone cards.
“There is nothing wrong in earning extra income, but if the money involved is millions, then do the transaction the legal way. This is to avoid being trapped into a serious complication that may end up with someone in jail,” Jacob said during a seminar for aspiring entrepreneurs in Jeddah.
Jacob confirmed that a Filipino woman named Marissa Jamora is now languishing in jail for allegedly engaging in the sale of fake pre-paid mobile phone cards.
Asked what the consulate was doing to help Jamora and her alleged victims, Jacob said: “We are extending help limited to the legal rights of the accused without prejudice to the adversely affected victims.”
Jamora has been once reportedly jailed for a similar scam but was set free by her sponsor. Last month, she was due to board a plane for the Philippines when police, acting on several complaints against her, arrested her.
Asked if there’s a chance for Jamora to be set free again, Jacob replied: “I don’t think so, unless she repaid back all her debts.”
Jacob also cautioned OFWs against pyramid schemes. Without mentioning company names, he warned: “It is better to first scrutinize who and what type of business you are dealing in before investing your hard earned fortunes.”
Some OFWs considered multilevel marketing (MLM) not a pyramid scheme, but others are skeptical due to the bad experience of many Filipinos here and in the Philippines. One of the most popular of the so-called MLMs these days is the First Quadrant, in which participants are made to build their own pyramid of members by recruiting at least two members each.
Members sell products such as shoes or clothes manufactured in the Philippines and get commissions, apart fro insurance and discounts. The leaders, called business associates, could supposedly become millionaires in so short a time if their pyramid grows on. Last year, thousands of OFWs were left holding an empty bag when another popular scheme called PowerHomes was declared illegal by the Philippine Securities and Exchange Commission (SEC).
About five years ago, thousands of OFWs in the Kingdom also ended losing about $120 each for joining the Pentagono, a pyramid scheme set up by Italy-based crooks.
For those who have been successful in MLM, however, the issue of whether one scheme is a scam or not is just a matter of perception.
Rebecca Jaime, a housewife who claimed to have earned a lot from MLM said: “It’s the lack of knowledge and understanding that confused many. Simple lang naman ang proseso. Kung gusto mong kumita ng malaki (The process is simple. If you want to earn big) you have to work hard for it.”
Chester del Rosario, who is working in Juffali, disagrees. “Kung may pera rin lang ako magtatayo na lang ako ng sarili kong business, sigurado pa. (If I have money, I’ll put up my own business the legal way. It would mean less risks.”