IFW investigators, in conjunction with the Philippine National Police (PNP) Regional Intelligence Unit, have dismantled a transnational criminal syndicate based in Manila.
In a sophisticated investment scam the syndicate defrauded Australians, Americans, British and European investors for at least seven years. These types of frauds are commonly known as boiler room frauds.
In simultaneous raids of homes in Muntinlupa City and Las Pinas City on August 15, 2018, an American and two Canadian men – Richard D. Racioppi Jr, Barry Rosen and Jesse Scott – were arrested.
The PNP executed search warrants allowing the seizure of computers, laptops, mobile phones, telemarketing scripts, investor lists, digital forensic evidence and weapons, including a sawn-off shotgun.
“The group was selling bogus stocks and shares to overseas-based investors, including an Australian man who lost $1.8 million,” IFW executive chairman, Ken Gamble, said after the raid.
“IFW continues to work with international law enforcement agencies to combat serious investment fraud across borders. This raid is an example of IFW’s strong relationships internationally with law enforcement agencies.
The suspects have been charged with violations of the Securities and Exchange Commission (SEC) Code, syndicated estafa (fraud) and violations of the Cybercrime Prevention Act of 2012. Syndicated estafa carries a maximum penalty of life imprisonment.
A further six arrest warrants are pending.
IFW continues to investigate boiler room scams in the Philippines.
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