A scammer has been arrested by Philippine authorities together with his wife for allegedly bilking some $17.32 million out of at least 50 investors through a Ponzi scheme involving Bitcoin.
The police said Arnel Ordonio was such a sweet talker that his custodians at the Philippine National Police (PNP) were not allowed to engage in conversation with the suspect while he was placed in isolation until criminal charges were formally filed. Ordonio and his wife Leonady were arrested by a team from the PNP Criminal Investigation and Detention Group (CIDG) in Vigan, Ilocos Sur, north of the capital Manila.
PNP-CIDG chief Roel Obusan told reporters during a press conference at the police headquarters:
“While he (Arnel) was in custody, he was overheard promising someone that as soon as he gets out, he would bring out the money. We could not allow that.”
Obusan ordered the police custodians to avoid speaking to Ordonio to prevent the suspect from sweet-talking his way out of detention. He added:
“So I waited for the charges to be filed against them before giving any clearance for anyone to speak with him.”
Bitcoin pyramid scam
Obusan said the spouses had founded New G Bitcoin Investment Trading, which promises investors high returns with payouts every 15 days. The Ordonios told their victims they would earn $5,773 for every $19,249 of investments, which amounts to a 30% gain.
“This is a simple case of estafa and pyramiding because they have an upline and downline. At the start, they would give the said interest during the first and second tranches, but after that, they would disappear,” Obusan added.
The couple even ran YouTube ads where they can be seen throwing 500 peso bills from the second floor of their house to entice their victims to invest. The Ordonios claimed the money came from their Bitcoin earnings.
But Obusan said the couple had no Bitcoin dealings. They actually make payouts to investors using investments from new victims.
Rosanne Maglunog, a victim who camped at police headquarters during the press conference, said she and her husband convinced their relatives to invest in New G after a friend invited them to the scheme. In total, Maglunog and her relatives invested $558,268 between November and December last year. Maglunog and her husband invested nearly $77,000 of their own money in New G.
The police filed syndicated estafa and estafa/swindling charges against Arnel and Leonady Ordonio before the Department of Justice.
PNP director general Ronald dela Rosa told the public not to believe in “get rich quick” investment schemes. He said:
"If you encounter a scheme that is too good to be true — offering a huge interest rate — that’s a scam. Don’t be fooled.”
This article appeared first on Cryptovest
