The Sun Is No Longer Shining
A MLM company has been in the news recently when it was investigated by the Commercial Affairs Department (CAD) and its management subsequently charged for criminal breach of trust and other charges, including running a fraudulent business. This company reported collected $189 million from 20,000 investors in Singapore. Videos on Youtube showed of youngsters in their 20s driving BMW 5 series because of their involvement in this company. A personal friend of mine is 1 of the investors who now may not get their money back.
My first reaction the moment my friend told me about this scheme was to warn him get-rich-quick schemes and that this company was placed on the watch list by MAS. However, he said that he was introduced to this company by another friend of his who, if I did not remember wrongly, is also a financial adviser. This adviser friend has verified that there really was a telecommunication project in Taiwan as reported by the company. It was recently reviled that that was no such project in Taiwan at all.
Even thought get-rich-quick scams have been around since mankind invented money, millions still continue to be duped. Can we ever learn? Maybe the answer is not whether can we learn, but can we stop and think and not act rashly.
When ethical advisers speak of realistic long term returns, people are not too interested. When unethical advisers and scammers boast of getting super high unrealistic short term returns, people get interested and put in their life savings without thinking. If these people can get such high returns, why do they need to continue to be advisers or share with you their ‘secret’? Do they really want to share the wealth or do they actually want your wealth instead?
As scammers continue to prey on man’s weakness, millions will continue to get cheated of their life savings. This scam will definitely not be the last one.