ILLEGAL INVESTMENT SCHEME: ITS POLITICAL AND ECONOMIC EFFECTS

Illegal Investment Scheme is a serious crime through which many individuals in the city persuaded to join not for days, months but it will end up about a year have been put at risk for every member due to the lapses of payouts that they didn't get and also the desired amount they had promised to those persons involved with this said investment. Facing this problem, the SEC enacted a Republic Act No. 8799 (R.A. 8799), otherwise known as the Securities Regulation Code, the Securities and Exchange Commission (SEC) mandated to supervise all corporations, partnerships, or associations existing under and by virtue of the laws of the Republic of the Philippines to provide solutions on the perennial problem of illegal investment in the city. The aim of this paper is to know the reasons behind the proliferation of illegal investment, the level of awareness of every constituent and the response of concerned agencies with regards to illegal investment.

This study adopted the qualitative type of research method in gathering relevant of data about the study. As a specific methodological choice for the study, it employed Key Informant Interview (KII), Survey Questionnaire, and Archival Research.

The study found that illegal investment is still proliferating because the people are not yet sighted on the law regarding to illegal investment and money laundering also they do have some knowledge, they tend to overlook it as having greater economic growth stakes their mindset. Among these directives includes the imposition of fines and penalizing violators. It was also revealed that most constituent have a very low awareness when it comes to the existing illegal investment.