Global Posts

I got this definition of “BOILER ROOMS” from Investopedia, (http://www.investopedia.com/terms/b/boilerroom.asp), and it clearly describes the method of approach used by PCPI and other scam operators.

“A place where high-pressure salespeople use banks of telephones to call lists of potential investors (known as a “sucker lists”) in order to peddle speculative, even fraudulent, securities. A boiler room is called as such because of the high-pressure selling.

A broker using boiler-room tactics gives customers only positive information about the stock and discourages them from doing any outside research. Boiler-room salespeople typically use catchphrases like “it’s a sure thing” or “opportunities like this happen once in a lifetime”

The SEC (http://www.sec.gov/answers/boiler.htm) further describes this as an operation conducted by dishonest brokers.

PIPC was a “boiler operation” under both definitions. But there is more to it than meets the eye.  PIPC may have bandied around that it has an account with ABN-AMRO but the fact is, it is not a foreign currency trading account but a mere fund depository account.  Their clients were probably misled into believing that their funds will be traded through the bank and will earn the promised interest.

During my own stint with a similar company closely associated with Michael Liew, I found out that their group, all “boiler room” operators, ( and mind you me they belong to only one group) have one clearing house for all their transactions and this is based in Macau. Whether this Macau operation is legitimately funneling all invested funds to the interbank market or not is something I did not have the chance to verify.

Here is what I surmise to have transpired with Michael and his PIPC!

On his own, Michael Liew may have conducted a foreign currency pool operation, pooling together his clients funds and trading them himself without his clients’ knowledge. The guaranteed profits can come from roll-over interest earnings on certain currency placements such as swiss francs which gives substantial daily roll over earnings on certain placements. But ahh, these interest earnings can be wiped out overnight if the price starts churning against his position.  if this is what he did, and if the price did turn against his position, he really would have no choice but pack up and run as what the likes of him have done in the past. If his placements have deteriorated in value substantially, he knows he can not run away from his Macau connections. The choice was clearly to pack up and go, pay up his Macau connection and hide under their protection; or stay and face the charges that clearly will be slapped on him by his clients here in the Philippines. Evidently, he chose to flee from his clients and is now probably sipping tea with his benefactors and associates in Macau.

WHEN THE PERFORMANCE INVESTMENT PRODUCTS CORPORATION SCAM HIT THE NEWS WIRES, SOME WRITERS DESCRIBED THE INCIDENT AS BEING SIMILAR TO THE LARGE SCALE INVESTMENT FRAUD PERPETRATED BY THE MANILA INTERNATIONAL FUTURES EXCHANGE IN THE MID‘80′S.

BUT DOES THE SIMILARITY END THERE?

FOR MORE THAN A DECADE, FROM 1985 TILL 1996, THE MANILA INTERNATIONAL FUTURES EXCHANGE HAVE BEEN MILKING THE UNSUSPECTING PHILIPPINE INVESTORS MILLIONS OF THEIR HARD EARNED MONEY, WHILE THE CORRUPT OFFICERS OF GOVERNMENT REGULATORY AGENCIES TASKED TO MONITOR AND PROTECT THE INVESTING PUBLIC PLAYED COY WITH THE PERPETRATORS OF THE SCAM.

WHAT VERY FEW PEOPLE KNEW THEN WAS THE FACT THAT THE OFFICERS OF THE EXCHANGE WERE MERE DUMMIES OF A GROUP OF EVIL SCHEMING HK-BASED CHINESE BUSINESSMEN WHO HATCHED THE PLAN TO ESTABLISH THE FIRST EVER COMMODITY FUTURES EXCHANGE IN THE COUNTRY.

ALSO, WHAT VERY FEW PEOPLE KNEW THEN WAS THE FACT THAT THE MEMBER-BROKERS OF THE EXCHANGE WERE ALL HENCHMEN OF THIS GROUP WHICH BANKROLLED THEIR PHILIPPINE OPERATIONS.

AND WORST, NEVER DID THE REGULATORY AGENCIES, SPECIALLY THE SEC SUSPECT THAT THEY WERE BEING USED TO LEGITIMIZE THIS GRAND SCHEME TO SCAM PHILIPPINE INVESTORS. THEY WERE LED TO BELIEVE THAT BY HAVING ITS OWN COMMODITY FUTURES EXCHANGE, THE PHILIPPINES WILL BE SEVERAL STEPS AHEAD OF ITS NEIGHBORS IN TERMS OF ECONOMIC DEVELOPMENT. AND SOMEHOW, THE HUGE AMOUNT OF GREASE MONEY THAT CHANGED HANDS THEN, INSURED THE ESTABLISHMENT OF THE EXCHANGE.

IT WAS TOO LATE FOR SEC TO LEARN THAT THE PEOPLE THEY WERE DEALING WITH WERE THE SAME PEOPLE RUNNING A NETWORK OF BOILER ROOM OPERATIONS ALL OVER AUSTRAL-ASIA.

AND, WHEN THE AXE WAS ABOUT TO BE STRUCK ON THEM BY THE SEC IN 1995 BECAUSE OF A DELUGE OF COMPLAINTS AND LAWSUITS, MOST OF THESE MIFE BROKERS RELOCATED TO NEW OFFICES, REGISTERED NEW NAMES, AND VENTURED INTO SPOT FOREIGN CURRENCY TRADING ,WHICH AT THAT TIME WAS HARDLY REGULATED , AND WAS JUST AS PROMISING ,AND JUST AS ATTRACTIVE TO INVESTORS LOOKING FOR “GET RICH QUICK” SCHEMES SIMILAR TO COMMODITY FUTURES TRADING.

IN THE ABSENCE OF REGULATORY MEASURES, THESE BOILER ROOM OPERATORS PLAYED “CATS AND DOGS” WITH THE SEC. THEY WOULD CLOSE SHOP IN ONE PLACE ONLY TO RE-APPEAR IN ANOTHER PLACE UNDER A DIFFERENT NAME.

GUESS WHO WERE THE PEOPLE BEHIND THE PPIC SCAM?

THEY WERE THE SECOND STRINGERS OF SOME OF THE BROKERAGE HOUSES OF MIFE IN THE MID ‘80S. THEY WERE THE BACK ROOM BOYS THEN. THEY ARE THE PRINCIPAL SCAMMERS NOW.

HOW DID I KNOW?

I SHOULD KNOW BECAUSE I WORKED WITH ONE OF THE MORE ACTIVE BROKERS OF MIFE AT THAT TIME. I ROSE UP THE RANKS AND GAINED ENOUGH OF THEIR TRUST FOR THEM TO SHARE WITH ME THEIR DIRTIEST SECRETS AND EVEN SENT ME TO SOME INTERNATIONAL ASSIGNMENTS.

MY EXPERIENCES WITH THEM TOOK ME TO DIFFERENT DESTINATIONS WORLDWIDE. THESE SHALL BE THE SUBJECT OF MY FUTURE BLOG POSTS HERE IN THE COMING MONTHS.

THIS BLOG IS MERELY THE INTRODUCTION TO A SERIES OF BLOGS DETAILING THE VARIOUS ROLES I TOOK IN THE BOILER ROOM OPERATION OF A COMPANY WHICH WAS CONTINUALLY ASSUMING DIFFERENT NAMES AS IT SPREAD ITS POISONED PROMISE OF HUGE PROFITS OVERSEAS. THIS CAPER TOOK “THE UNSUSPECTING ME” TO DIFFERENT CITIES IN THE PHILIPPINES AS WELL AS TO HONG KONG, SINGAPORE, KL, AND US CITIES LIKE SAN FRANCISCO, SAN DIEGO, PALO ALTO, AND TIJUANA IN MEXICO.

SUCH IS THE MAGNITUDE AND SCOPE OF THEIR SCAMMING OPERATIONS!