Metro Manila residents may not be aware of this but of late, there has been an increase in the involvement of youth groups and gangs in criminality, like mauling, holdups, and even in killings and rapes.

The Presidential Anti-Organized Crime Commission, in its 2008 assessment report to Malaca?ang, for instance, summarized the criminal activities of youth gangs: carnapping, robbery/ holdup, hijacking, pickpocketing, and worse, guns-for-hire and gun running.

These, in spite of their partial neutralization by the National Police.

The commission, in its report to the President about youth gangs, trace their proliferation. Foremost, they are not likely to be prosecuted for their crimes since they are minors. Second, illegal drugs are prevalent and readily available in the streets. Third, some parents neglect their children. These, as well as several other factors.

The conclusion is that even youth/fraternity gangs are involved in criminality and that something must be done to address the problem of too many criminal gangs operating in Metro Manila. The perfect example of this is what I saw recently over ABS-CBN?s TV Patrol?a group of teenagers involved in the holdup of man who was simply waiting for a jeepney ride. They also mauled the victim.

Thus, the commission in its recommendation stressed the need for continuous profiling of youth/street gangs and criminal gangs; continuous monitoring of their activities, and more police visibility in areas where gang/frat gangs are committed.

Santa Banana, I?d like to add that the existence of this menace will be half solved if parents monitored the activities of their children.

***

I?ve been analyzing the scheme that has defrauded many depositors in rural banks and a pre-need firm associated with the Legacy Group of Companies. It approximates the Madoff ?Ponzi? scheme in the US.

?Banks transact business through documents.? This is a common phrase widely used in the banking industry and this may very well sum up the so called Legacy scheme.

During its recent investigation on the Legacy case, the Senate confirmed the complex corporate layering and fraudulent schemes of the Legacy Group, headed by politicians-businessman Celso de Los Angeles Jr.,. through which the group was able to amass, misappropriate, convert and siphoned billions of pesos to the prejudice of the general public.

Commercial documents were executed between the average Filipino and corporations duly-registered with the Securities and Exchange Commission in the end. However, these documents were exposed as mere scraps of paper intended to deceive the general public and escape the scrutiny of the government regulators.

The Bangko Sentral ng Pilipinas conducted its own independent study of the ?Legacy Business Model,? which apparently involved three stages, namely: First, gathering of funds through deposits from the general public; second, siphoning of these deposits through fictitious loans and other fraudulent means to related companies of the Legacy Group; and last, covering up the fictitious loans and fraudulent schemes.

My gulay, the BSP revealed that the Legacy Group gathered its funds not from millionaires or billionaires or people who had money to spare. Instead, the Legacy Group enticed the average Filipino to deposit and invest his hard-earned money in rural banks and investment opportunities, like ?double your money? schemes in rural banks and investment companies affiliated with the Legacy Group.

Santa Banana, I must give credit to the criminal genius or geniuses, who concocted this scheme. It takes the cake in defrauding people!

***

In another development, the BSP also discovered that to ensure it would be able to amass huge deposits which it would later on misappropriate, the affiliated rural banks and investment companies would offer seemingly profitable investment programs with the assurance that the funds invested will earn huge profits in a relatively short period of time.

Such schemes offered to double the people?s money in three to five years, truly enticing offers to the average Filipino, who in these trying times, would grasp any offer claiming to be the solution to their financial woes.

Santa Banana, the criminal genius who concocted the scheme knows that when it comes to money, many people can be enticed or seduced because of greed. That?s why I have no sympathy for people like them for losing their hard-earned money.

The Legacy Group apparently also ensured that the depositors would only have to deposit not exceeding P250,000 per depositor under the rules of the Philippine Deposit Insurance Corp. In effect, the Legacy Group intended to defraud not only the government, which funds the PDIC, but ultimately the Filipino people, who fund the government through taxes. My gulay, this hurts since a crime like this can be categorized as an economic sabotage. It involves national interests.

The BSP in its investigations also showed that the Legacy Group then siphoned out the accumulated deposits through fictitious and fraudulent loans, through the other companies affiliated with Legacy. The Legacy Group convinced those wanting to earn a quick buck, and human nature being what it is, ?lend their signatures? and sign loan documents in exchange for a ?commission.?

Thus, on paper, numerous loans were executed, but in reality, no loan proceeds were actually released to the borrower. In truth and in fact the ?loan proceeds? were credited to a Legacy affiliate and would never even be seen by the supposed borrower. These ?schemes? could never be thought of by investment bankers from Harvard or Stanford.

The BSP investigations further revealed the last step in this grand scheme?the coverup.

To remove the fictitious loans from the books of the rural banks, the loans were assigned to Legacy affiliates or individuals. In exchange, the banks would receive overvalued real properties or properties with fake titles.

The real properties were then in turn ?sold? to a Legacy affiliate through long term sales contracts receivables, making it appear that something of a particular value was received when the very reality was farthest from the truth. My gulay, this beats any of those Hollywood movies of grand larceny!

Despite the large amount of deposits and investments accumulated through these fictitious and fraudulent means by Legacy, rural banks and investment companies of the Legacy Group have collapsed, as in any likened to the ?Ponzi? scheme, leaving depositors and investors in disarray, and the Legacy Group accountable for the many lives they have ruined.

Thus, it?s about time those responsible for these schemes are held accountable. The SEC has already filed several cases against the Legacy Group for violations of the Securities Regulations Code and has requested the Justice Department to file appropriate criminal charges against it.

The BSP has also filed several cases against De los Angeles and Legacy?s top officials, including a criminal case of non-bailable syndicated estafa for which the BSP has engaged the services of Villaraza Cruz Marcelo & Angangco of the CVC Law (The Firm), which undoubtedly has the skill and expertise to bring the Legacy Group to justice.

Santa Banana, only criminal minds have the capacity to concoct that scheme. For that, they should be prosecuted, convicted and jailed and the keys thrown to the polluted Pasig River.

***

Former Senate President and presidential wannabe Manny Villar is now being taken to task by his rivals for saying that if they didn?t have P1 billion, they might as well forget being president.

I don?t know why some presidential hopefuls are bellyaching over Villar?s comment since it strikes deep into the ambitions of some for the highest office of the land. They depend on contributions of people with vested interest, who later on will collect on the political debts of those elected. And this has been responsible for a lot of graft and corruption in all administrations.

The height of arrogance? It may well be since Villar has billions for his candidacy, but, he was simply stating the fact that in the race for the presidency, the Golden Rule prevails. Translated: He who has the gold rules.

Funding for the candidacy of people who depend on vested interests, and worse from drug, smuggling and gambling puts national interests at risk.

And, my gulay, this may well happen in the 2010 polls since there are so many presidential hopefuls depending on donations and contributions from vested interests, be they with noble or ignoble intentions.