Extortion in Lucena invest plan bared

LUCENA CITY—Government authorities have been asking for money in exchange for the protection of persons behind a controversial multimillion-peso capital scheme run by a cooperative here, which suddenly dried up to the dismay of small investors, the Inquirer has learned.

Gerald Joseph Murillo, account manager of South Luzon Multipurpose Cooperative-Grand Alliance of Business Leaders Association Inc. (SLMC-Gabai), made the disclosure in a taped interview aired on Monday morning over the local television program, “Reklamo at Aksyon, Ibroadcast Mo,” on Channel 8.

Murillo did not identify the government authorities involved in the protection racket, the program host, Violet Quinto-Cabral, told the Inquirer in a phone interview. “Gerald admitted that they gave money but he did not elaborate,” she said.

Supt. Allen Rae Co, Lucena police chief, dared him to name the extortionists. “Murillo is muddling the issue to divert public attention. Why would they give money if their operation is legal?” he said.

Co said that based on the information investigators had so far gathered, some key officials of the cooperative were stealing from the millions in peso deposits put in by the investors.

Financial mess

Murillo, who, along with his wife Jenelee, the logistics officer, was interviewed by Cabral in an undisclosed hiding place on Sunday, confirmed the police report and disclosed that some unscrupulous officials of the cooperative had been plundering the investment funds, resulting in the present financial mess of SLMC-Gabai.

He did not identify the officials. But in a phone interview on Friday, he named Camille Bautista, technical sales officer, as one of those involved.

On Friday, Bautista denied the accusation and countered that the Murillo couple were the ones who ran away with an estimated P20 million in cash deposits early last week.

According to her, one of two SLMC-Gabai resident auditors discovered a trash pile of investment receipts supposedly under Jenelee’s control, which totaled P20 million.

Murillo refuted the allegation and said he and his wife were willing to face police investigation.

Luzardo Lucido, Gabai chair and SLMC administrator, the Murillo couple, Bautista and other key officials of the cooperative had been hiding from investors since Wednesday after the cooperative failed to give investors their promised yields.

No payouts yet

Thousands of restive and furious investors started flocking at the SLMC-Gabai compound here early Monday, hoping that the cooperative would again resume operations. To their disappointment, they were told by Ricmar Almajar, SLMC account officer, that they could not yet disburse payouts, or payments of interest.

Two security guards with long firearms were posted at strategic spots inside the compound.

“We assure all of you that we will not close,” Almajar told the crowd. He said SLMC-Gabai would initiate changes to the system for smoother operations upon their return.

Some asked him to give a specific date for the payouts. “You’re just giving empty promises to pacify us. You’re fooling us,” one said.

Complaints groups formed

Larry Fajarda, who wants to get back his P105,000 investment, said he was forming a group of investors to file complaints to the police.

Jennelyn Zeta, one of SLMC-Gabai’s partner-vendors or “suppliers,” said her group had met with some account officials on Sunday night and was given assurance that all unpaid obligations would soon be settled.

“They told us that a foreign investor will come in to help settle the payment,” Zeta said. She added that SLMC-Gabai owes her some P2 million in unpaid merchandise, mostly signature items from abroad.