Dear Attorney,

I invested with a company, and they have not fulfilled their obligations, such as quarterly reporting and profit-sharing deposits. It seems their reported income is no longer believable. They are also unresponsive to my inquiries. Can I request a full refund of my investment?

Sincerely,
Worried Investor

Insights

Investment fraud in the Philippines, especially in cases where a company's obligations are not fulfilled, falls under several legal frameworks. Under Philippine law, an investor has the right to file a complaint if a company fails to meet its promises, particularly if there are signs of fraudulent activity, such as false financial reporting or failure to honor profit-sharing agreements.

Breach of Contract
When a company fails to meet its contractual obligations to an investor, the investor can invoke the provisions of breach of contract under the Civil Code of the Philippines. This can be grounds for rescinding the agreement and demanding the return of the investment.
Securities Regulation Code (RA 8799)
If the company solicits investments from the public without proper registration or misrepresents its financial condition, it may be violating the Securities Regulation Code (RA 8799). This law requires companies to comply with strict regulations regarding investment solicitation and reporting to prevent fraud.
Syndicated Estafa
If the company's actions involve deceiving investors by promising unrealistic returns or failing to disclose essential information, it may be liable for estafa (fraud) under the Revised Penal Code. If multiple investors are defrauded, the offense may qualify as syndicated estafa, a non-bailable crime.
Filing a Case
An investor who believes they have been defrauded can file a complaint with the Securities and Exchange Commission (SEC) for administrative action or pursue a criminal case under the Revised Penal Code for estafa. Civil remedies, such as the recovery of the full amount invested, can also be pursued by filing a breach of contract claim.

In conclusion, if the company is not fulfilling its obligations, and there are signs of fraud, you may be entitled to recover your investment by invoking legal action for breach of contract, securities violations, or even estafa, depending on the specific circumstances.