Firm linked to scam began with only P10M

ILOILO CITY—A financial investment firm that has allegedly defrauded hundreds of investors in Iloilo involving billions of pesos had a paid-up capital of P10 million, according to records of the Securities and Exchange Commission (SEC).

The General Information Sheet covering 2012 of the Iloilo-based  Evergreen Finance (Iloilo) Inc. (EFII) showed that the lending firm had a total subscribed and paid-up capital of P10 million for 1,000,000 shares valued at P10 per share.

Five stockholders and incorporators own the shares, with EFII chair and president Reynaldo Navarro owning P6,494,850 while vice president Jose Que, treasurer Aida Navarro and Erwin Que own P1,001,470 worth of shares each. The fifth incorporator, Marybeth Que Dyhong, owns shares worth P500,740.

In its financial report covering 2011 submitted to the SEC on March 14, 2012, EFII reported that its total liabilities and equity reached P10,046,305. It reported a net income of P40,999, down from P101,789 in the previous year.

The National Bureau of Investigation had investigated EFII after at least 17 complainants, mostly from Chinese-Filipino families and businessmen in Iloilo, sought the assistance of the Department of Justice.

The complainants are seeking the recovery of about P400 million in investments that they deposited with the credit firm. They were issued placement certificates by the firm and were promised annual interest between 8 and 12 percent.

The complainants filed the case after EFII began reneging on the payment of interests in the middle of last year.

Various sources have estimated that the investments in EFII reached from P3 billion to P5 billion.

Navarro had not responded to requests for comment and could not be contacted at his office in Iloilo City.

NBI special investigator Rojun Hosillos, who investigated the case, said the report and recommendations have been submitted to the NBI central office but declined to reveal details for lack of authority.

Arnold Diaz, executive officer of the office of the NBI’s deputy director for regional operations services, said the report is being evaluated by the bureau’s legal division.