T~RTEENTH 
CONGRESS OF THE 
SECOND REGULAR SESSION 
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yfiy 22 ;?ii :i~;!: 
S.B. BILL No, 
2248 
Introduced by Sen. Alfred0 S. Lim 
EXPLANATORY NOTE 
For several years now, we had been hearing and continue to receive 
accounts about big corporations with thousands of investors, clients 
shbscribers or depositors going kaput, floundering and unable to live up to 
and provide their promised bonanza, fortune or reward to their investors and 
scbscribers. 
In tandem are developerslowners of subdivisions, housing and 
condominium corporations which had accepted payments from buyers but 
hbd also failed to finish the promised edifice or structure. 
Not to be overlooked are the so-called get-rich schemes like the 
pyramiding ventures which had victimized thousand of investors. 
We know how severely damaging and disastrous these wobbling 
adventures had wrought on the national life and even to the families of the 
vkctims. They had caused too much grief and miseries to the victims. 
Expectedly, the victims who had been left poorer and penniless have 
nothing to go except to cry in high heavens and bring their complaints to the 
ppblic expressing their indignation not only to earn sympathy but, most 
&portant, to prevent others from being victimized by the very same 
schemes. 
It is but natural, lawful, and morally justified and fitting for them to 
dake such exposition and criticisms against their tormentors in public. 
Apropos to this, they should be given ample protection and refuge 
from any configuration of badgering from those whom they charge with the 
cbmmission of fraudulent scheme and that they be granted immunity 
p’articularly from libel - the easiest form of retaliation which those who had 
defrauded them could utilize since they could use the very same money that 
they got through deceit against their victims. 


Hence, it is the bill’s purpose to put a stop to such form of harassment. 
A 


T+RTEENTH CONGRESS OF THE) 
RQPUBLIC OF THE PHILIPPINES ) 
<5 y#y 22 *p 5 ;i:y 
SGCOND REGULAR SESSION 
) 
/ 
SENATE 
S. B. BILLNo. 
2248 
Introduced by SENATOR ALFRED0 S. LIM 
AN ACT 
PROVIDING FOR IMMUNITY FROM PROSECUTION FOR LIBEL 
OF VICTIMS OF FRAUD AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representative of 
thh Philippines in Congress assembled: 
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SECTION 1. Title of the Act.- This Act shall be known as the 
“Fraud Victims”1mmunity Act of 2006” 
SEC. 2. Immunityfiom Libel.- Any provision of law to the 
contrary notwithstanding, victims of fraud, deceit, racket, pyramiding 
or any form of fraudulent scheme perpetrated by an impostor, 
pretender or deceiver shall be immune from prosecution for the 
crime of libel under Act 3135 otherwise known as the Revised Penal 
Code, for any statement made, oral or written, privately or publicly 
uttered, that involves or pertains to the victims’ investments, deposits 
or payments to the said person, associates or his firm or any matter 
involving the fraudulent scheme employed in defrauding the victims 
or causing them prejudice. 
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SEC. 3 De$nition of Terms.- As used in this Act, the following 
shall be understood as: 
(a) Victims- Five (5) or more persons who are investors, 
depositors, buyers, holders or subscribers to any bank, lending, 
financing, pyramid, pre-need, Insnrance, subdivision, housing, 
condominium, lottery or any money-raising ventures or utility 
companies or other businesses engaged in accepting deposits, 
investments, premiums or other forms of payments, who failed to 
receive the promised interest, income, earning or benefits, objects or 
structures, .from such companies for whatever reason; 
(b) Fraudulent Scheme.- Any offer, devise, plan, program, 
propaganda, oral or written, that induced the victims to invest, deposit, 
entrust or deliver money or thing of value to any bank, financing, 
lending, pyramid, pre-need, insurance, subdivision, housing, 
condominium, lottery or any money-raising or utility companies or 
other businesses engaged in accepting, deposits, investments, 
premiums or other forms of payments but which promised returns, 
earnings, benefits, interests or objects or structures, are in fact non- 
existent or is not to be complied with or did not materialize or could 
not be fulfilled after the lapse of six (6) months, for whatever reason; 
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(c) Perpetrated.- Is the inability, failure or rehsal of the person 
employing such fraudulent scheme to pay, deliver, or provide the 
promised interest, income, benefits or proceeds hom the deposits, 
investments, premiums or other forms of payments, or objects or 
structures to at least five (5) persons who have made such deposits, 
investments, premiums or other forms of payments; 
(d) Impostor, Pretender or Deceiver- Any person, a corporation 
or its officer, director of stockholder, partner of partnership, or any 
company or firm, including its employees, sales or other agents or 
representatives engaged in banking, lending, financing, pyramid, pre- 
need, insurance, subdivision, housing, condominium, lottery or any 
money-raising ventures or utility companies or other businesses 
engaged in accepting deposits, investments, premiums or other forms 
of payments, who shall fail to provide the promised interest, return of 
investment earnings, benefits or other forms of financial gain or finish 
the object or structure of more than five (5) persons at any given time; 
SEC. 4 Duty of the Prosecutor. - Upon receipt of any charge for 
libel against the victims of haudulent scheme filed by the impostor, 
pretender or deceiver as defined above or by its or his associates, 
relatives within the fourth degree of consanguinity or affinity, officer, 
manager, agent or employee, the prosecutor must suspend further 
proceedings pending resolution of the defense of immunity raised by 
the victims and any resolution rendered by him shall be reviewed by 
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the Secretary of Justice; Provided, However, the resolution of the 
Secretary may be elevated to the Court of Appeals under Rule 65 
whose decision may be appealed to the Supreme Court under Rule 45; 
Provided, Further that no information for libel may be filed unless the 
Supreme Court shall have decided that the immunity against the 
victims do not lie or can not be legally invoked. 
SEC. 5 Unlawful Acts.- Any person who shall cause the 
issuance of a warrant of arrest, shall enforce the same or effect the 
arrest of the victims charged with libel in violation of Section 4 liable 
for criminal prosecution and shall be sentenced to imprisonment of 
from six(6) years to twelve(l2) years, upon the discretion ofthe court. 
SEC. 6 Efectivity. This Act shall take effect one month after 
the completion of its publication in a newspaper of general circulation. 
Approved 
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