(A DETAILED ACCOUNT OF HOW THE MANILA INTERNATIONAL FUTURES EXCHANGE DUPED THE INVESTING PUBLIC FOR MORE THAN A DECADE)

You must have read or heard of a news story somewhere about a young, innocent girl being conned by a group of men into going with them to party all night with sweet promises of gifts and money. The innocent girl, enticed by their promises, went with them - her penchant for the promised rewards overshadowing her fear for her own safety. She ended up being locked up in a house for a long time and gang-raped over and over and over again!

This is the best way I can vividly picture to you the scam operations perpetrated by the defunct Manila International Futures Exchange from its inception in 1985 until it was finally issued a cease and desist order by the Securities and Exchange Commission in 1997.

The MIFE was established and headed by a Hong Kong-based British National who came to the Philippines touting the credentials of having headed the Hong Kong Commodity Futures Exchange sometime ago in the past. The Philippine authorities, mesmerized by the seemingly impeccable record of the foreigner, forgot all about conducting due diligence. They fell into the trap and approved the creation of a commodity futures exchange in 1985. The authorities were made to believe that the exchange will benefit Philippine farmers who are producers of copra, coffee, sugar, and soybeans, the four commodities to be traded in the new exchange. And so, the “rape” began!

Very few people knew the following details:

* That the Briton was actually a henchman of a group of Chinese businessmen-brokers who pulled a similar scam at the Hong Kong Futures Exchange (the Carrian Caper) in the past.
* That all the member brokers of MIFE were all inter-linked with each other and their operations were all funded by the same Chinese group
* That the Manila International Futures Clearing House which was supposed to be an independent entity in charge of clearing and auditing exchange transactions was actually owned by the same group and that the Filipino directors of both the exchange and the clearing house were mere dummies who never knew what was really going on (They were there just for the fee to put some semblance of credibility to the operations of both the exchange and the clearing house.
* That the SEC personnel tasked to monitor the daily activities in the trading floor were also under the payroll of the exchange, and for more than ten years they were there every single day but never really knew what their tasks were much less what they were supposed to monitor.
* That the volume transactions being reported by the exchange were all scam transactions and the supposedly actual trading being done daily by Filipino floor traders were actually being orchestrated by the Chinese dealers of each member broker shooting out instructions to their floor traders by phone all through out the trading sessions.
* That these Chinese dealers maintained phone hot lines connected to each other so they can manipulate the prices in all the four daily trading sessions of the exchange. They dictate how far the price must go up or down for each trading session.

What I have enumerated above are not mere allegations but first hand knowledge based on the personal contacts I had while working as an employee of some of the key players in this scam. For lack of space, I shall end my blog at this point with a promise that I shall share with you the details, and I mean the real details, on how this scam was pulled through. These series of revelations are actually meant to provide you with a better understanding of how forex scam operators conduct their business because spot foreign currency trading in the Philippines was an offshoot of the closure of MIFE.

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Just recently, the Philippine Supreme Court threw out SEC’s bid to stop Performance Foreign Exchange Corporation from continuing to defraud Philippine Investors on a mere technicality, a major blunder by the regulatory body. This now opens the floodgates to other forex scam artists to rush in and once more “rape” the country with impunity.

The SEC’s biggest mistake was to try to pin down PFEC for engaging in commodity futures trading and for engaging in the marketing of financial derivatives. This was effectively and legally rebutted with PFEC’s argument that spot foreign currency trading is not done in an exchange and the buying and selling of forex does not necessarily involve actual delivery of the contracted instruments in stark contrast to foreign currency cash transactions done through banks. On this basis, the Supreme Court made the precedent setting decision that forex contracts can not be considered as commodity futures contracts. They further blundered when they alleged that PFEC ’s main product, spot foreign currency trading is a financial derivative (the height of stupidity). They were now forced to seek the Central Bank’s clarification on the issue since trading in financial derivatives is well within the Central Bank’s jurisdiction. However, the Central Bank is more up to date with developments in the financial markets and had no choice but to declare the fact that spot foreign currency trading is not a derivative of any financial instrument (not a financial derivative) which is what it is, a totally unique financial instrument traded freely and electronically between banks and/or their intermediaries.

However, there is no denying the fact that foreign currencies, when traded for speculative profits only are deemed as securities and therefore falls within the jurisdiction of the SEC’s regulatory and oversight functions as mandated by Republic Act 8799. But how then do we discern speculative trading from cash transactions as is done in the banks? Simple! Speculative foreign currency trading is done through what they call as a margin system while cash transactions are done straight off, one on one, based on the current rates of exchange. The SEC could have crafted its own regulatory policies in this context to regulate spot forex trading within the framework of Republic Act 8799 as early as late 1980’s when they started to receive mounting complaints from investors. They never did.

The problem with these Chinese scam artists in the Philippines goes way back to 1985 when the Manila International Futures Exchange was established. From that time up to the present, countless lawsuits and complaints were filed against various forex scam artists (Incidentally, none of the decisions favored the complaining investors!). And, as I said in my earlier blogs, the SEC was playing ” cats and dogs” with these forex scam artists all this while. Inspite of that, the SEC never really learned their lessons well!

The Securities Act was revised and made into a new law in the year 2000, more than a decade from the advent of commodity futures trading in the Philippines in 1985, and the influx of forex “boiler room” operators into the country in the ’90s. After more than a decade of deception and fraud by these scam artists, after billions of dollars have been lost by investors to them, after thousands of lawsuits have been filed by losing investors to no avail, the SEC is still groping around, looking for a way to finally catch these scam artists. Or, are they ……

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• The Biggest War You Haven't Heard About Yet

I am publishing herewith excerpts from the Supreme Court’s decision [G.R. No. 154131, July 20, 2006] citing the letter from the Central Bank which became the basis for the dismissal of the case filed by the SEC against Performance Foreign Exchange Corporation, to wit:

“Meanwhile, on August 13, 2001, Amado M. Tetangco, Jr., then Officer-in-Charge, Office of the Governor, BSP, in answer to SEC Chairman Lilia Bautista’s letter-request of February 8, 2001, stated that respondent’s business activity “does not fall under the category of futures trading” and “can not be classified as financial derivatives transactions,” thus:

Dear Ms. Bautista,

This refers to your letter dated February 8, 2001 requesting for a definitive statement that the foreign currency leverage trading engage in by private corporations, particularly, Performance Foreign Exchange Corporation (PFEC), is a financial derivatives transaction and that it can only be undertaken by banks or non-bank financial intermediaries performing quasi-banking functions and/or its subsidiaries/affiliates.

As indicated in your description of the transactions and the documents submitted, the foreign currency leverage trading, subject of your query, is essentially similar in mechanics to currency future trading, particularly with respect to the margin requirements, standard contract size, and daily market-to-market of open position. However, it does not fall under the category of futures trading because it is not exchange-traded. Further, we can not classify it as being financial derivatives transactions as we consider the transaction as plain currency margin trading, which by its mechanics, involve the set-up of margin and non-delivery of the currencies involved.

In view of the foregoing facts, the activities of the aforesaid corporation are not covered by BSP guidelines on derivative licensing.

We hope we have satisfactorily clarified your concerns.

Very truly yours,

(Sgd.)
AMANDO M. TETANGCO, JR.“

THE SEC WAS TRYING TO PIN DOWN PFEC ON THE BASIS OF OUTDATED DEFINITIONS OF SECURITIES AND REGULATORY GUIDELINES AS SET IN THE Republic Act 8799 OTHERWISE KNOWN AS THE SECURITIES REGULATION CODE OF THE PHILIPPINES ENACTED ON JULY 19, 2000.

WHY OUTDATED? BECAUSE REPUBLIC ACT 8799 FAILED TO ENCOMPASS THE FAST BECOMING POPULAR SPOT CURRENCY TRADING WHICH WAS BEING CONDUCTED ELECTRONICALLY OFF-EXCHANGE AND NON-BANK BASED, CREATING A LEGAL LOOPHOLE WHICH PFEC IS NOW EXPLOITING TO THE HILT.

IT IS FUNNY, THOUGH, TO NOTE THAT WHILE REPUBLIC ACT 8799 PRACTICALLY GAVE THE SEC A BLANKET AUTHORITY TO REGULATE PRE-NEED PLANS (SEE THE PROVISION BELOW) , IT FAILED TO ADDRESS AND DEFINE THE SEC’S OVERSIGHT FUNCTIONS OVER SPOT CURRENCY TRADING WHICH BY THEN WAS FAST DEVELOPING INTO A PARALLEL MARKET TO INTERBANK FOREIGN CURRENCY MARKET. TOTALLY DIFFERENT IN ESSENCE WITH COMMODITY FUTURES TRADING AND DEFINITELY NOT A FINANCIAL DERIVATIVE BY DEFINITION.

(CHAPTER IV
REGULATION OF PRE-NEED PLANS

Section 16. Pre-Need Plans. – No person shall sell or offer for sale to the public any pre-need plan except in accordance with rules and regulations which the Commission shall prescribe. Such rules shall regulate the sale of pre-need plans by, among other things, requiring the registration of pre-need plans, licensing persons involved in the sale of pre- need plans, requiring disclosures to prospective plan holders, prescribing advertising guidelines, providing for uniform accounting system, reports and recording keeping with respect to such plans, imposing capital, bonding and other financial responsibility, and establishing trust funds for the payment of benefits under such plans.)

Hardly noticed at first, now spreading like wildfire and loved and adored by a growing army of fans (including me) is the tandem of two brothers behind Moymoy Palaboy Productions. They produce musical videos where the brothers themselves perform by lipsing perfectly through each musical production. (They must have practiced a lot to make such perfect productions). They upload their productions on You Tube for free public viewing and most of their productions have attracted more than 1M views so far. They have been offered and are now mainstays of a popular tv show in the Philippines. Working out from their own home, they made good use of their free time (they must have lots of it) to bring laughter to the world. These are the kind of stuff that will lighten up your day. Watch and enjoy this one. Happy viewing!

I can still remember how everybody went into a frenzied state of excitement over “tuba-tuba” when no less than the president spearheaded the media campaign to promote it as an alternative fuel source more than two years ago. I remember very well that there was an up coming election at that time too.

I was one of those who jumped into the bandwagon and started a tuba-tuba nursery in anticipation of an increase demand for tuba-tuba planting materials. Then the anticipated announcement was made - the president alloted Php500M for the project and made PNOC as the lead agency purportedly to implement this alternative energy program and encourage the planting of tuba-tuba! But lo and behold, only press releases flooded the countryside after that. Money for the farmers for this project never came. To sustain media awareness for the highly budgeted project, the president even harnessed the use of military camps and her soldiers to plant tuba-tuba. This, she said, was to encourage farmers to start planting tuba-tuba. But the farmers refused to plant without guaranteed subsidies and a ready market for their produce. Little did I realize that all this hullabaloo was a mere ploy. .. and the alternative energy program is just a myth.

The head of PNOC, the lead agency for the program, resigned before the elections that year, and guess why? - Because he refused to allow the illegal disbursement of the Php500M to other than what it was intended for. Oh, and where did the money go? Well, I kept on repeating that it was election year that time, and co-incidentally one of those running for a national office was the author of the Alternative Energy Bill conveniently passed by both houses that same year. Neat, huh?

This is why Michael Liew of PIPC Scam find the Philippines a paradise! Corruption here is a way of life and the likes of him can go unnoticed. Here, he blended well with his surroundings.

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• Green-tech news harvest: biomimicry and wave power, World Bank clean-tech fund

As if we didn’t know yet, huh?

People of the likes of Michael Liew and many more before him, knows how to make good use of their capital here in the Philippines! They know how to keep themselves well-entrenched with the powers that be! They understand the Filipino way of life, the way of doing business with them. And it suits them fine because they came here purposely to scam. They understand too well the Filipino Culture, specifically, the Culture of Corruption endemic in this country.

When the Senate conducted a hearing on the PIPC scam, they noted that the Government Regulatory bodies were remiss on their jobs. They didn’t realize that they were rather negligent too!

This was not the first investment scandal that hit the country. There were others before this. The MIFE for one was a huge scam perpetrated over a decade and was only stopped because of the mounting complaints from investors. The money involved could have reached billions. As early as then, strict regulatory measures should have been put in place. The SEC regulations should have been reviewed! Oversight functions should have been clearly delegated and defined.

In Hong kong, Malaysia, and Singapore, where Michael Liew is from, they can no longer operate because of stringent legislative measures immediately put in place after scam operations were exposed.

“Only in the Philippines.” This is how most Filipinos would laughingly dismiss the issue. To many of them, Investment scams are ordinary , almost-everyday-kind-of-thing in this country.

Unless bribery and corruption is stopped, expect the scam artists to return!

Michael Liew set up operations in the Philippines at the time the SEC was cracking down on a lot of other similarly listed companies illegally dealing on foreign currency trading. He must have bribed his way around to get SEC approval! And, he had the gall to set up operations in Makati’s prime business address at that time - at the Enterprise…thanks to to his Filipino dummy and partner (who now claims he parted ways with Liew way back)(BS!)

Michael was able to scam Filipino investors because his Filipino partner who is a well-heeled businessman who holds sway on Makati’s innermost business circle, helped him! Michael was able to craft and fine tune his scam because he had a battery of lawyers who can skirt around legal regulatory obstacles and take advantage of legal loopholes. Michael was able to perpetuate his scam because he had a dedicated Filipino staff and a manager who had been with him since MIFE days, all ready to put their own futures and their own careers on the line for him. Michael was able to design this grand scheme because there were corrupt officials at the SEC, people who had helped his group make a mockery of MIFE since 1985. Michael was able to put the finishing touches to this scam and made an undetected exit because there were corrupt officers at the NBI who tipped him off before any move by the agency was conducted.

It was so since 1985! It still is now!

Tags: scams, michaelliew, mife

As if we didn’t know yet, huh?

People of the likes of Michael Liew and many more before him, knows how to make good use of their capital here in the Philippines! They know how to keep themselves well-entrenched with the powers that be! They understand the Filipino way of life, the way of doing business with them. And it suits them fine because they came here purposely to scam. They understand too well the Filipino Culture, specifically, the Culture of Corruption endemic in this country.

When the Senate conducted a hearing on the PIPC scam, they noted that the Government Regulatory bodies were remiss on their jobs. They didn’t realize that they were rather negligent too!

This was not the first investment scandal that hit the country. There were others before this. The MIFE for one was a huge scam perpetrated over a decade and was only stopped because of the mounting complaints from investors. The money involved could have reached billions. As early as then, strict regulatory measures should have been put in place. The SEC regulations should have been reviewed! Oversight functions should have been clearly delegated and defined.

In Hong kong, Malaysia, and Singapore, where Michael Liew is from, they can no longer operate because of stringent legislative measures immediately put in place after scam operations were exposed.

“Only in the Philippines.” This is how most Filipinos would laughingly dismiss the issue. To many of them, Investment scams are ordinary , almost-everyday-kind-of-thing in this country.

Unless bribery and corruption is stopped, expect the scam artists to return!

Michael Liew set up operations in the Philippines at the time the SEC was cracking down on a lot of other similarly listed company illegally dealing on foreign currency trading. He must have bribed his way around to get SEC approval! And, he had the gall to set up operations in Makati’s prime business address at that time - at the Enterprise…thanks to to his Filipino dummy and partner (who now claims he parted ways with Liew way back)(BS!)

Michael was able to scam Filipino investors because his Filipino partner who is a well-heeled businessman, who holds sway on Makati’s innermost business circle, helped him! Michael was able to craft and fine tune his scam because he had a battery of lawyers who can skirt around legal regulatory obstacles and take advantage of legal loopholes. Michael was able to perpetrate his scam because he has a dedicated Filipino staff and a manager who had been with him since MIFE days and are ready to put their own future and their own careers on the line for him. Michael was able to design his grand scheme because there were corrupt officials at the SEC, people who had helped his group since 1985. Michael was able to put the finishing touches to his scam and made an undetected exit because there were corrupt officers at the NBI who would tipped them off before any move by the agency is done.

It was so since 1985! It still is now!

WHEN THE PIPC INVESTMENT SCAM HIT THE NEWS WIRES, SOME WRITERS DESCRIBED THE INCIDENT AS BEING SIMILAR TO THE LARGE SCALE INVESTMENT FRAUD PERPETRATED BY THE MANILA INTERNATIONAL FUTURES EXCHANGE IN THE MID‘80′S.

BUT DOES THE SIMILARITY END THERE?

FOR MORE THAN A DECADE, FROM 1985 TILL 1996, THE MANILA INTERNATIONAL FUTURES EXCHANGE HAVE BEEN MILKING THE UNSUSPECTING PHILIPPINE INVESTORS MILLIONS OF THEIR HARD EARNED MONEY, WHILE THE CORRUPT OFFICERS OF GOVERNMENT REGULATORY AGENCIES SUPPOSED TO MONITOR AND PROTECT THE INVESTING PUBLIC PLAYED COY WITH THE PERPETRATORS OF THE SCAM.

WHAT VERY FEW PEOPLE KNEW THEN WAS THE FACT THAT THE OFFICERS OF THE EXCHANGE WERE MERE DUMMIES OF A GROUP OF EVIL SCHEMING HK-BASED CHINESE BUSINESSMEN WHO HATCHED THE PLAN TO ESTABLISH THE FIRST EVER COMMODITY FUTURES EXCHANGE IN THE COUNTRY.

ALSO, WHAT VERY FEW PEOPLE KNEW THEN WAS THE FACT THAT THE MEMBER-BROKERS OF THE EXCHANGE WERE ALL HENCHMEN OF THIS GROUP WHICH BANKROLLED THEIR PHILIPPINE OPERATIONS.

AND WORST, NEVER DID THE REGULATORY AGENCIES, SPECIALLY THE SEC SUSPECT THAT THEY WERE BEING USED TO LEGITIMIZE THIS GRAND SCHEME TO SCAM PHILIPPINE INVESTORS. THEY WERE LED TO BELIEVE THAT BY HAVING ITS OWN COMMODITY FUTURES EXCHANGE, THE PHILIPPINES WILL BE SEVERAL STEPS AHEAD OF ITS NEIGHBORS IN TERMS OF ECONOMIC DEVELOPMENT. AND SOMEHOW, THE HUGE AMOUNT OF GREASE MONEY THAT CHANGED HANDS THEN, INSURED THE ESTABLISHMENT OF THE EXCHANGE.

IT WAS TOO LATE FOR THEM TO LEARN THAT THE PEOPLE THEY WERE DEALING WITH WERE THE SAME PEOPLE RUNNING A NETWORK OF BOILER ROOM OPERATIONS ALL OVER AUSTRAL-ASIA.

AND, WHEN THE AXE WAS ABOUT TO BE STRUCK ON THEM BY THE SEC IN 1995 BECAUSE OF A DELUGE OF COMPLAINTS AND LAWSUITS, MOST OF THESE MIFE BROKERS RELOCATED TO NEW OFFICES, REGISTERED NEW NAMES, AND VENTURED INTO SPOT FOREIGN CURRENCY TRADING ,WHICH AT THAT TIME WAS HARDLY REGULATED , AND WAS JUST AS PROMISING ,AND JUST AS ATTRACTIVE TO INVESTORS LOOKING FOR "GET RICH QUICK" SCHEMES AS COMMODITY FUTURES TRADING.

IN THE ABSENCE OF REGULATORY MEASURES, THESE BOILER ROOM OPERATORS PLAYED "CATS AND DOGS" WITH THE SEC. THEY WOULD CLOSE SHOP IN ONE PLACE ONLY TO RE-APPEAR IN ANOTHER PLACE UNDER A DIFFERENT NAME.

GUESS WHO WERE THE PEOPLE BEHIND THE PPIC SCAM?

THEY WERE THE SECOND STRINGERS OF SOME OF THE BROKERAGE HOUSES OF MIFE IN THE MID '80S. THEY WERE THE BACK ROOM BOYS THEN. THEY ARE THE PRINCIPAL SCAMMERS NOW.

HOW DID I KNOW?

I SHOULD KNOW BECAUSE I WORKED WITH ONE OF THE MORE ACTIVE BROKERS OF MIFE AT THAT TIME. I ROSE UP THE RANKS AND GAINED ENOUGH OF THEIR TRUST FOR THEM TO SHARE WITH ME THEIR DIRTIEST SECRETS AND EVEN SENT ME TO SOME INTERNATIONAL ASSIGNMENTS.

MY EXPERIENCES WITH THEM TOOK ME TO DIFFERENT DESTINATIONS WORLDWIDE. THESE SHALL BE THE SUBJECT OF MY FUTURE BLOG POSTS HERE IN THE COMING MONTHS.

THIS BLOG IS MERELY THE INTRODUCTION TO A SERIES OF BLOGS DETAILING THE VARIOUS ROLES I TOOK IN THE BOILER ROOM OPERATION OF A COMPANY WHICH WAS CONTINUALLY ASSUMING DIFFERENT NAMES AS IT SPREAD ITS POISONED TASK OVERSEAS.THE CAPER TOOK "THE UNSUSPECTING ME" TO DIFFERENT CITIES IN THE PHILIPPINES AS WELL AS TO HONG KONG, SINGAPORE, KL, AND US CITIES LIKE SAN FRANCISCO, SAN DIEGO, PALO ALTO, AND TIJUANA IN MEXICO.

SUCH IS THE MAGNITUDE AND SCOPE OF THEIR SCAMMING OPERATIONS!

I met the guy personally in Singapore sometime in 1995 and again in San Francisco in 1996.

They were just cursory meetings through the people I worked for. As early as then, I knew Michael and my bosses were running Forex “boiler room” operations worldwide. Government regulators forced them out of California way back then and charges are still pending against these people.

I knew Michael as being part of the group that owned C&T Global a member broker of MIFE in 1985. When MIFE was shut down, C & T assumed different names and worked with several Filipino dummies who, I should say belong to the kind who would sell their souls and exchange their principles for the mighty big bucks.

Their modus operandi is rather simple. They strike when everybody else is looking elsewhere. They will be sending people here who are not yet in the government watch list. They will keep their contacts here intact and well provided for. And when things have cooled down, they will set up operations once again.They have a battery of lawyers in their payroll who would also do anything for them to set up operations here over and over again. I’ve seen it happen repeatedly. And I guess, I expect it to happen once more in the Philippines.

They can no longer operate in Australia. in Singapore, in Hongkong, and in the U.S. (And oh, by the way they tried Mexico City too in 1995!) Authorities there can not be bribed at all and new regulatory measures were immediately put in place after their operations in those countries were discovered. In 1995, before the MIFE closed down, these people hit China real hard and they were able to make a killing from unsuspecting Chinese farmers! (I know of some friends who became part of that scam operations and they told me about their horrible escape ordeal from Chinese authorities.)

Michael Liew may have left the Philippines, but the group’s presence is still very much evident. Their people come and go, hatching new ways to scam Filipinos. You may want to ask, how come they are able to operate freely here, and how come they are able to do it over and over again? First off, the regulatory measures in place have a lot of loopholes. For example, the Forex company operating from the Enterprise in Makati (also set up by Michael Liew) is still able to exist because of a legal loophole, disguised as a “research and facilities provider”. Second, Philippine authorities can be bribed! And this says it all!

Take my word for it…..more “Michael Liews” are coming! And we better be damned prepared for them!

I got this definition of “BOILER ROOMS” from Investopedia, (http://www.investopedia.com/terms/b/boilerroom.asp), and it clearly describes the method of approach used by PCPI and other scam operators.

“A place where high-pressure salespeople use banks of telephones to call lists of potential investors (known as a “sucker lists”) in order to peddle speculative, even fraudulent, securities. A boiler room is called as such because of the high-pressure selling.

A broker using boiler-room tactics gives customers only positive information about the stock and discourages them from doing any outside research. Boiler-room salespeople typically use catchphrases like “it’s a sure thing” or “opportunities like this happen once in a lifetime”

The SEC (http://www.sec.gov/answers/boiler.htm) further describes this as an operation conducted by dishonest brokers.

PIPC was a “boiler operation” under both definitions. But there is more to it than meets the eye. PIPC may have bandied around that it has an account with ABN-AMRO but the fact is, it is not a foreign currency trading account but a mere fund depository account. Their clients were probably misled into believing that their funds will be traded through the bank and will earn the promised interest.

During my own stint with a similar company closely associated with Michael Liew, I found out that their group, all “boiler room” operators, ( and mind you me they belong to only one group) have one clearing house for all their transactions and this is based in Macau. Whether this Macau operation is legitimately funneling all invested funds to the interbank market or not is something I did not have the chance to verify.

Here is what I surmise to have transpired with Michael and his PIPC!

On his own, Michael Liew may have conducted a foreign currency pool operation, pooling together his clients funds and trading them himself without his clients’ knowledge. The guaranteed profits can come from roll-over interest earnings on certain currency placements such as swiss francs which gives substantial daily roll over earnings on certain placements. But ahh, these interest earnings can be wiped out overnight if the price starts churning against his position. if this is what he did, and if the price did turn against his position, he really would have no choice but pack up and run as what the likes of him have done in the past. If his placements have deteriorated in value substantially, he knows he can not run away from his Macau connections. The choice was clearly to pack up and go, pay up his Macau connection and hide under their protection; or stay and face the charges that clearly will be slapped on him by his clients here in the Philippines. Evidently, he chose to flee from his clients and is now probably sipping tea with his benefactors and associates in Macau.