m15-16

• What are Ponzi and pyramid schemes based on?


  They are based on the same concept of fooling unsuspecting individuals for extraordinary returns.
• How do Ponzi and pyramid schemes sustain themselves?

  They are self-sustaining as long as cash outflows can be matched by monetary inflows.
• What is the main difference between Ponzi and pyramid schemes?

  The differences arise in the type of products offered and the structure of the schemes.
• What are the warning signs of a Ponzi scheme?

  • Promises of high returns
  • Little to no risk
  • Lack of registration and licenses
  • Complicated investment strategies
  • Missing paperwork and payments
• What is the primary function of a Ponzi scheme?

  To pay returns to investors from money taken from new investors.
• How does a pyramid scheme operate?

  It requires the initial schemer to recruit other investors who will continue to recruit more investors.
• Who profits the most in a pyramid scheme?

  People at the top of the pyramid tend to profit the most.
• What are the warning signs of a pyramid scheme?

  • Recruitment
  • Fast cash
  • Passive income
  • Lack of documentation
  • Hard to understand commission structure
• What laws in the Philippines aim to prevent fraudulent financial schemes?

  1. Securities Regulation Code (Republic Act No. 8799)
  2. Revised Penal Code
  3. Consumer Act of the Philippines (Republic Act No. 7394)
  4. Anti-Money Laundering Act (Republic Act No. 9160)
• Swindling (estafa)


  Estafa refers to any person who shall defraud another by any of the means mentioned
• What is large scale estafa characterized by?

  It is characterized by the involvement of a syndicate or being committed on a large scale.
• What are the penalties for syndicated estafa in the Philippines?

  Syndicated estafa is punishable by reclusion perpetua or life imprisonment.
• How does the penalty for large scale estafa differ from regular estafa?

  Large scale estafa carries a penalty of reclusion temporal to reclusion perpetua, while regular estafa has lighter penalties.
• What is the difference between syndicate and large scale in the context of illegal recruitment?

  • Syndicate: Involves a group of three or more persons conspiring together.
  • Large scale: Committed against three or more persons individually or as a group.
• What is the penalty for fraud exceeding 12,000 pesos but not exceeding 22,000 pesos according to Article 315 of the RPC?


  The penalty is prision correccional in its maximum period to prision mayor in its minimum period.
• What happens if the amount of fraud exceeds 22,000 pesos according to Article 315 of the RPC?


  The penalty shall be imposed in its maximum period, adding one year for each additional 10,000 pesos.
• What is the minimum penalty for fraud exceeding 6,000 pesos but not exceeding 12,000 pesos?


  The penalty is prision correccional in its minimum and medium periods.
• What is the penalty for fraud exceeding 200 pesos but not exceeding 6,000 pesos?

  The penalty is arresto mayor in its maximum period to prision correccional in its minimum period.
• What is the penalty for fraud not exceeding 200 pesos?

  The penalty is arresto mayor in its maximum period.
• What are the means by which swindling (estafa) can be committed according to Article 315 of the RPC?

  • With unfaithfulness or abuse of confidence
  • By altering the substance, quantity, or quality of anything of value
  • By misrepresentation
• What is the maximum penalty that can be imposed for certain crimes according to the Code?

  Twenty years
• What are the two types of penalties referred to in the Code?

  Prision mayor and reclusion temporal
• What is the penalty for prision correccional in its minimum and medium periods if the fraud amount is over 6,000 pesos?

  Prision correccional
• What is the penalty for fraud amounts over 200 pesos but not exceeding 6,000 pesos?


  Arresto mayor in its maximum period to prision correccional in its minimum period
• What is the penalty for fraud amounts not exceeding 200 pesos?


  Arresto mayor in its maximum period
• What are the means by which fraud can be committed according to the Code?

  1. With unfaithfulness or abuse of confidence
  2. By means of false pretenses or fraudulent acts
  3. Through fraudulent means
• What is one way fraud can be committed with unfaithfulness or abuse of confidence?

  By altering the substance, quantity, or quality of anything of value
• What does it mean to misappropriate or convert property in the context of fraud?

  To take money, goods, or property received in trust and use it to the prejudice of another
• What is an example of taking undue advantage of a signature?


  Writing a document above a blank signature
• What constitutes false pretenses in fraud?

  Using a fictitious name or falsely pretending to possess certain qualifications or properties
• What is the penalty for post-dating a check or issuing a check without sufficient funds?

  Maximum period of the penalty
• What is considered fraud when obtaining food or accommodation?

  Obtaining it without paying with intent to defraud
• What is one way to commit fraud through deceit?

  Inducing another to sign any document
• What is the penalty for swindling a minor?article 317

  Arresto mayor and a fine ranging from 10 to 50 percent of the value of the obligation
• What are the steps to take if you believe you have been a victim of estafa?

  1. Gather Evidence: Collect documents, contracts, receipts.
  2. Consult a Lawyer: Seek legal advice from a criminal law specialist.
  3. File a Complaint: Report to authorities like the PNP or NBI.
  4. Cooperate with the Investigation: Assist law enforcement with inquiries.
• What is the definition of estafa?

  Estafa is a serious criminal offense involving deceit, fraud, or misrepresentation resulting in financial harm.
• What should you do first if you suspect estafa?

  Gather evidence
• Why is it important to understand the elements and penalties associated with estafa?

  To protect individuals and businesses from fraudulent activities
• Securities regulation code


  Republic act 8799
• revised penal code

  act no. 3815