Practice question
Investors lose money after a genuine enterprise fails. The evidence establishes no prior fraudulent representations inducing their investments. Investigators invoke Baladjay’s Ponzi discussion solely because losses were large. Which is correct?
- Every unsuccessful investment is automatically syndicated estafa.
- The deceit-based predicate requires its own proof; loss alone does not establish a fictitious investment operation.
- Large loss proves all prior representations false beyond reasonable doubt.
- Business failure alone proves an unlawful agreement among five people.
- The prosecution need not identify the predicate fraud.
Legal references
- People v. Baladjay, G.R. No. 220458, July 26, 2017, main decision, deceit, Ponzi operation and participation evidence under PD 1689: https://lawphil.net/judjuris/juri2017/jul2017/gr_220458_2017.html
- PD 1689, Section 1, covered syndicated swindling: https://lawphil.net/statutes/presdecs/pd1980/pd_1689_1980.html
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