Legacy Group Banks May Be Doomed

[twostrokes]

Another conspiricy theory here could be that Legacy figured it had gone as far as it could, skimmed off as much as it could, and therefore created the ability to get the banks shut down in order to free themselves of all the investors. The PDIC uses a loophole to say all deposits were by Legacy, so does not have pay out to anyone. Everyone who has lost money blames PDIC, not Legacy....and as usual, no one gets procsecuted and just walks away with the money.

[Steve]

SOURCE: http://www.sunstar.com.ph/cebu/claims-rele...e-long%E2%80%99Claims release

[Mr Lee]

http://www.sunstar.com.ph/cebu/pdic-won%E2...r-legacy-schemePDIC won

[johnrxx99]

I guess one has to assume that any capital invested in the Legacy Group will not come back. Some will have got interest payments for a year or two so not all is lost. It also sounds the FDIC will pay back the capital if not the interest to the Rural Bank investors.What lesson is to be learnt? As with all Ponzi schemes, if someone is offering returns that are way and above what "proper" institutions are offering, smell a rat. The fact they have been going a year or two sucks people in and that is the only way they can continue as the high returns are paid from new punters deposits. The credit crunch, which has been foreseen for a long while, has had another victim.Do research. The guy who runs Legacy is, I believe, the son of a former government senator who got kicked out because of corruption.If it is not too painful, is there anyone involved who can let us know what current position is because the rest of the Legacy Group may still be paying out on the pensionfund policies?

Edited December 17, 2008 by johnrxx99

[Mr Lee]

http://business.inquirer.net/money/topstor...nks-closed-down2 more

[TheMason]

I guess one has to assume that any capital invested in the Legacy Group will not come back. Some will have got interest payments for a year or two so not all is lost. It also sounds the FDIC will pay back the capital if not the interest to the Rural Bank investors.

I don't know about the RP, but in the US when a scheme like this goes bad the govt. will take back any interest paid out in the past. If you were actually paid high interest/returns on an insured account the govt. will take back all earnings. The theory is that since it was fraudulent returns, you aren't entitled to keep them.The PDIC has said they won't honor the high Legacy interest rate, that they will only pay prevailing market interest rates. I suspect anyone that received interest payments on their insured Legacy accounts will not keep that money.

Do research. The guy who runs Legacy is, I believe, the son of a former government senator who got kicked out because of corruption.

Wow. Kicked out of office for corruption in the RP. I wonder just how crooked you have to be for that to happen.

[Mr Lee]

and the drama begins. The old saying is that Sh@t rolls downhill, so those at the bottom are much more likely to end up getting punished than the rich at the top who will surely pay their way out of this with all the money they made from being on the top of the pyramid scheme. http://www.sunstar.com.ph/cebu/legacy%E2%8...uit-join-forcesLegacy

Edited December 18, 2008 by Mr. Lee

[chimellie]

I feel bad for the people who invested a lot of money and losing it all. I invested only a small amount with Legacy's.I was going to have a big party with lechon, beer, balut,Rhum .....etc.....for you guys, but I am not going to now.

[retired]

and the drama begins. The old saying is that Sh@t rolls downhill, so those at the bottom are much more likely to end up getting punished than the rich at the top who will surely pay their way out of this with all the money they made from being on the top of the pyramid scheme. http://www.sunstar.com.ph/cebu/legacy%E2%8...uit-join-forcesLegacy's depositors, investors brace for lawsuit, join forcesThursday, December 18, 2008 FRUSTRATED with some government offices and the Legacy Group, some investors and depositors have organized themselves to discuss legal actions they may take against the banks.They also agreed to ask the National Government to intervene and help the thousands of depositors and pre-need plan holders who now have nowhere to go and are uncertain if they can recover their hard-earned money.The depositors, who requested anonymity, sought the Cebu City Government's help yesterday, asking for updates on the ongoing evaluation of the banks' records by the Philippine Deposit Insurance Corp (PDIC).One of them said 21 members of their family have investments with the Legacy Group, one of whom suffered a heart attack and has been confined at the intensive care unit after learning that she could no longer withdraw her money.Another depositor said she is very frustrated after seeking the help of the police, the Securities and Exchange Commission, the Bureau of Immigration and the fiscal's office, but to no avail."Wala na mi kahibaw kinsay among duolon, unsa nga government office among pangayoan ug tabang. Niduol na mi sa fiscal, sa police ug sa immigration para dili makalarga ang mga involved ani, pero dili kuno sila moatiman kay wala may kaso (We don't know whom to turn to for help. We went to the fiscal, the police andimmigration so those involved can't flee abroad, but they said they couldn't do anything without a case)," she told city officials yesterday.City Administrator Francisco Fernandez and former city councilor Manuel Legaspi, a City Hall consultant, listened to the gripes of the depositors and assured them the City's information center will continue to provide them with updates, if any.Even if they agree to file a case, some of them said they don't know who they will run after, since they don't know who issued them checks as part of repayment for their investment, which came with a guarantee that their money would double in three or five years."We just want to seek justice. If government will just allow them to get away with this, it will surely happen again in the future, and there will surely be more victims," another depositor said.Legaspi assured them that if they agree to file charges against the banks, the City can facilitate requests for legal assistance from the Integrated Bar of the Philippines. (LCR)

Manila Times: Friday, December 19, 2008 EXCLUSIVE Legacy files petition for dissolution By Likha Cuevas-Miel, Reporter After shutting down its operations and offices unannounced, Legacy Consolidated Plans Inc. filed a petition for voluntary dissolution with the Securities and Exchange Commission (SEC) late Thursday. The petitioner, a member of the Legacy Group that is linked to banks that were recently placed under receivership, filed 10 separate petitions for voluntary dissolution where creditors are affected for each of the companies that were deemed insolvent. According to Gerard Lukban, SEC secretary, filing for dissolution could be equated to filing for bankruptcy. This meant that the assets of the company were less than their liabilities or the assets are not sufficient to service planholders. The other companies that filed for dissolution were Legacy Card Inc., One Realty Corp., Galaxy Realty and Holdings Inc., Legacy Consolidated Asset Holdings Inc., Fusion Capital Corp., Conventional Realty Corp., Shining Armour Property Inc., Legacy Motors Inc. and Scholarship Plan Phils. Inc. Last week, The Manila Times reported that Legacy Consolidated shut down its operations without warning to neither the SEC nor the planholders. After inspecting the company

[Jollygoodfellow]

I feel bad for the people who invested a lot of money and losing it all. I invested only a small amount with Legacy's.I was going to have a big party with lechon, beer, balut,Rhum .....etc.....for you guys, but I am not going to now.

And I thought this whole Legacy thing doesn't affect me but now I'm a victim, no party, thats bad. :(