Couple involved in car rental scam arrested for illegally practicing medicine

After arresting suspects in an illegal dental clinic in Benguet, authorities found that Jun Jun and Catherine Banal were evading racketeering and other charges related to their car rental business in Pampanga.

PAMPANGA, Philippines — A couple on the run from an alleged car rental scam were arrested on August 2 for illegally practicing medicine at their residence in Sablan, Benguet.

The Criminal Investigation and Detection Group (CIDG) of the Philippine National Police (PNP) arrested Junjun Banal and his wife Catherine in a sting operation in Baguio City for alleged violations of the Philippine Dental Act of 2007. They are currently detained in Tuba, Benguet.

Authorities seized various dental equipment from the couple’s three-story home. The local Philippine Dental Association had previously suspected the couple of practicing medicine without a license.

The couple was only arrested for allegedly practicing medicine illegally. It was not until further investigation by the Philippine National Police Highway Patrol Group (HPG) and the Presidential Anti-Organized Crime Council (PAOCC) that authorities learned that the couple was involved in a large car rental scam in Pampanga called Param Car Rental Services.

Back in October 2023, an arrest warrant was issued for the Banals for serious crimes including large-scale fraud, kidnapping, and robbery. Charges were filed against them by the Angeles City Regional Trial Court and the Mabalacat City Trial Court.

Illegal car rental business

HPG Cordillera Regional Investigation Chief, Police Maj. Joseph Tayaban, said the couple conspired to misrepresent Palam Car Rental as a legitimate investment firm. Tayaban said the couple defrauded at least 149 people of a total of P300 million before fleeing to Sablan to evade capture.

“The suspects used and promoted the name of a company, Param Car Rental, (and conspired and aided each other) in fraudulently representing and falsely representing themselves as a legitimate investment company offering 10% interest per month. They defrauded several victims of about P300 million and then hid in Sablan, Benguet to evade the complainant and authorities,” Tayaban told Rappler on Friday, August 9.

Documents obtained by Rappler show that Param Car Rental was registered with the Philippines Bureau of Internal Revenue in June 2018 and with the Philippines Department of Trade and Industry in November 2019. The Mabalacat City Business Permit and License Office issued a business license in 2021.

The Banars, who are also residents of Mabalacat City, Pampanga, sought to run for Barangay Sabang Biabas in Mabalacat City. However, their arrest warrants were issued a week before the October 2023 barangay elections.

In another interview posted on HPG’s Facebook page, Jun Jun defended his business, claiming that their business is well-known in Pampanga. Jun Jun claimed that all investors have seen a return on their investment, pointing to billboards along major thoroughfares such as Angeles City and the North Luzon Expressway (NLEX) as proof that they are operating legally.

“We are very popular in Pampanga. Just now someone broke it. This is what happened. All my investors, they all made money. The investment came back, but the money is still growing. How do you know we are a scam? We all have a billboard. One in Abakan and one in NLEX. How can this be a scam, our business has been around for a long time? We have a lot of business. All our investors, all their cars were returned. Nothing will be returned” “Junjun said.

“We are very popular in Pampanga. Someone is sabotaging us. This is what happened. All my investors have made money. Their investment has been recovered and they are still making money. How can we be called a scam? We have two billboards. One in Abakan and one in NLEX. How can this be a scam? We have been in business for a long time. We have a lot of business. All the cars of our investors have been returned. Not one has not been returned.)

One of the victims, Daniel Sumang, said in an interview with Rappler on August 8 that he was initially attracted by the couple’s promise of high returns of 12% to 15% per month. However, he only received P200,000, a fraction of the expected amount.

Sumang invested a total of P4.6 million under six franchise agreement contracts between June 2021 and May 2022. According to documents obtained by Rappler, records show that the Banals have an outstanding debt of P11.078 million to Sumang.

Sumang said he was convinced when the Banals mentioned that one of their business partners was a well-known company.

“We saw the post on Facebook and called him. They asked us to come to them, to their office. When we met at the office of Palam Car Rental, they had a business license issued by the municipality. They offered us 12% first, so we agreed. After a month, he offered us 15%, so we accepted it,” Sumang told Rappler in the Kapampangan language.

(We saw their ad on Facebook and called them. They asked us to go to their Param car rental office and we found out that they had a license from the city hall. Initially they offered us a 12% discount so we agreed. A month later they increased the offer to 15%).

“I saw them and I was very encouraged by their proposal because they showed that they had business partners from the airport, hotels, San Miguel (Corporate). I was interested in San Miguel because I knew San Miguel was a big company. That’s how we came in.” He added.

(I was attracted by their proposal because they also claimed to have business partners from airports, hotels and San Miguel Group. I was particularly interested in San Miguel because I knew it was a big company. So we decided to sign up.)

Meanwhile, PAOCC reiterated its commitment to seeking justice for other victims of the couple’s fraudulent activities and continued support for the Philippine National Police’s efforts to combat organized crime nationwide. Rappler.com