EXPLAINER: The legal woes of Neri Naig

Actress and businesswoman Neri Naig was arrested at the basement of a convention center inside a mall in Pasay City at 2:50 p.m. on Saturday, Nov. 23, 2024 for alleged syndicated estafa and violations of the Securities Regulation Code.

A warrant of arrest was served to her for 14 counts of violation of the Securities Regulation Code with bail of P126,000 for each count, according to the Southern Police District (SPD).

However, Naig's syndicated estafa charge is a nonbailable offense.

A commitment order has already been issued by the court. The Bureau of Jail Management and Penology (BJMP) said Naig was transferred from police custody to Pasay City Jail Female Dormitory on Wednesday.

How did the actress-businesswoman end up in jail?

Dermacare franchise

In October 2020, Dermacare, with registered company name Beyond Skin Care Ventures Inc., welcomed Naig as a new franchisee in a signing ceremony.

"We welcome Ms. Nerizza 'Neri' Miranda as the newest member of the Dermacare Family. Aside from signing as our newest franchisee, we will see more of her," Dermacare Face Body and Laser Center said in a now deleted Facebook post, but the caption and photos are still searchable on Google.

Naig also teased about the signing event in a Facebook post. She then started endorsing the services of Dermacare on social media.

On Sept. 1, 2023, Miranda announced on Facebook that she is no longer associated with Dermacare.

"It is important for me to make this announcement to ensure transparency and avoid any misunderstandings," she said.

"I want to emphasize that any transactions or engagements made under my name by Dermacare are unauthorized and have been conducted without my consent. If you come across any instances where my name is being used in connection with Dermacare, I kindly request you to inform me promptly," she added.

SEC warning

In the same month in 2023, the Securities and Exchange Commission (SEC) issued an advisory against Dermacare warning the public that the company is "not authorized to solicit investments from the public."

READ: Neri Naig arrest: SEC gives more details on case

The SEC said Dermacare is only registered to provide skin care services but the company has not secured registration or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC).

Reports reached the SEC that Dermacare is enticing the public to invest under its "Franchise Partner Agreement" with a promise of guaranteed return equivalent to 12.6% interest every quarter for a period of five years with discounts for its services.

In November 2023, Dermacare's registration was revoked.

"Ang ginawa namin nagpadala kami ng show cause order why hindi dapat siya ma-revoke kasi nga for engaging in what we feel is selling and offering of investment contracts and securities," SEC Director Filbert Catalino Flores III told GMA News Online.

(We sent a show cause order why its registration should not be revoked because it is for engaging in what we feel is selling and offering of investment contracts and securities.)

"We find that their explanation is not valid and they are engaging, bukod doon sa sinabi kong selling of securities, pakiramdam namin fraudulent transaction 'yun kasi wala silang authority at all, pakiramdam namin Ponzi (scheme) siya. At 'yung pinakahuling ano namin, ultra vires siya kasi wala siya primary purpose niya 'yung mag-offer ng securities, wala lahat 'yun. So therefore, ni-revoke namin," he added.

(We find that their explanation is not valid, apart from selling of securities, we feel that it is a fraudulent transaction because they have no authority at all, we feel that it is a Ponzi scheme. It is also ultra vires because its primary purpose is not to offer securities. So, therefore, we revoked it.)

Complainants

According to the police, two complainants from Cavite and Batangas, who invested a total of around P1.5 million, lodged the complaints against Naig.

"Ayon doon sa nakalagay sa warrant, isa siyang endorser doon sa isang company, so na-engganyo 'yung mga complainants na mag-invest dahil nandoon siya as endorser," SPD spokesperson Police Major Hazel Asilo said.

(According to what is written in the warrant, she is an endorser in a company so the complainants were enticed to invest because she was there as an endorser.)

"Wala naman siyang nabanggit regarding doon kasi as endorser nga lang siya doon ayon na rin doon sa nakalagay doon sa information natin is hindi niya rin siguro alam kung ano 'yung takbo ng company na iyon kasi nga endorser lang siya. Hindi natin masabi kung aware siya kung paano pinapatakbo 'yung company na pinasukan niya," she added.

(She didn't mention anything regarding that because she is only an endorser there and according to what is written there in our information, she probably doesn't know how that company runs because she is only an endorser. We cannot say if she was aware.)

According to the SEC, endorsers of securities should also be registered with the Commission.

"That's why siguro, sorry ha hindi kami privy doon sa kaso ni Neri, I think ginamit, ang lumabas doon nagamit siya o siya mismo ang naghikayat. Therefore, that Section 28 na, you're liable na as a broker, agent, or salesperson. That is a violation kasi kailangan registered ka rin sa amin," Flores said.

(That's why maybe, I'm sorry we're not privy to Neri's case, I think she was used or apparently she was the one who encouraged the investors. Therefore, that is Section 28 already, you're liable as a broker, agent, or salesperson. That is a violation because you also need to be registered with us.)

Miranda defends wife

In a Facebook post on Wednesday, Naig's husband Chito Miranda said his wife did not scam anyone. Miranda, vocalist of rock band Parokya ni Edgar, asserted that she was just an endorser and her face was used to entice investors.

"Kinasuhan siya ng mga nabiktima. Tapos last week, bigla na lang siyang inaresto for the same case kahit hindi pa siya binigyan ng notice na may bagong criminal complaint pala laban sa kanya, and di niya na-defend 'yung sarili nya," he said.

In other previous complaints, Miranda said his wife was able to receive and comply with them.

Miranda said Neri never received any money, all of which were with Dermacare owner Chanda Atienza. He also posted a letter supposedly from Atienza wherein she apologized to Neri amid the issue surrounding the company.

Aside from the revocation of registration, the SEC said the Commission this year also filed criminal cases against all Dermacare incorporators and agents identified by the complainants who reached out to the agency.

"But, Ms. Neri was not among those identified by the complainants who came to us," Flores said.

The cases include violations of Securities Regulation Code, Financial Products and Services Consumer Protection Act, Anti-Money Laundering Act, and Cybercrime Prevention Act, which are still pending at the Department of Justice.

GMA News Online has reached out to Dermacare as well as to the lawyer of complainants, Roberto Labe, for comment on the matter but they have yet to respond as of posting time.

A staff member of the Pasay Regional Trial Court Branch 111 said the arraignment for Naig's alleged Securities Regulation Code violations on Thursday was moved to Jan. 9 after her camp filed a motion to quash.

The court then asked the prosecution and the SEC to submit comments regarding the motion. Neri's camp has similarly declined to give a statement regarding these developments, according to a report on 24 Oras. — VDV, GMA Integrated News