This document summarizes 7 infamous investment scams that occurred in Singapore and provides a checklist for detecting scams. The 7 scams discussed are: 1) Sunshine Empire Ponzi scheme, 2) Genneva Gold & Valiant Capital gold buyback scam, 3) Gold Guarantee gold buyback scam, 4) EcoHouse property development scam, 5) Tropical Forestry Ventures investment scam, 6) Suisse International's gold buyback scam, and 7) Keystone Trading offshore betting scam. The checklist outlines red flags such as promises of too good to be true returns, high pressure sales tactics, and whether the company is listed on the MAS investor alert list.
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation.
IFMC Institute Success Story Reliance Capital Distributor Connect Magazine De...IFMC Institute
Reliance has endorsed
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Manish sir - It's our Pleasure to have you with us and we are really inspired by your hard work and we wish you many successful years ahead.
Presentation to the Palm Beach Chamber of Commerce on November 5th 2009 regarding spotting financial fraud and ponzi schemes in investment accounts by securities attorneys.
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation.
IFMC Institute Success Story Reliance Capital Distributor Connect Magazine De...IFMC Institute
Reliance has endorsed
“UDTS by IFMC is successful and popular in more than 110 countries."
Manish sir - It's our Pleasure to have you with us and we are really inspired by your hard work and we wish you many successful years ahead.
Presentation to the Palm Beach Chamber of Commerce on November 5th 2009 regarding spotting financial fraud and ponzi schemes in investment accounts by securities attorneys.
You want to see your family secured and happy at all times. You try your best to fulfill all the responsibilities, however, life is unpredictable. To protect your families against such adversities of life and to ensure that they are able to cope with any financial obligations, should anything happen to you, Kotak Life Insurance offers to you Kotak Preferred E-Term plan. Kotak Preferred E-Term plan is a pure risk cover that provides you with a high level of protection at an economical price. It comes with a disability advantage where in case of an unfortunate event if you are disabled during the Premium Payment Term your future basic premiums are waived and the plan continues.
An irrevocable trust is created to remove assets from the taxable estate and the grantor (or the grantor's spouse) is given certain powers that cause the trust to be a grantor trust from income tax purposes.
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NACM Agricultural Suppliers Meeting, Jan 20, 2017 at the Hilton Conference Center in Gainesville, FL. The slides accompany a presentation about how to explain agricultural concepts to the public, borrowing from what has been learned from psychology, crisis communication and public service.
A keynote symposium talk to Grow Canada, December 7, 2016. The topic was the effects of climate change and how ag producers and agricultural researchers are studying opportunities to adapt to warmer temperatures. The session focuses on communications strategies that emphasize adaptation over the contentious issues of cause or mitigation. The hope it to continue productive agricultural production without becoming mired in policy discussion, and the science of adaptation will inform discussion in climate change cause and mitigation.
How should one spot and avoid a Ponzi Scheme?Albert Stark
A Ponzi scheme is a fictitious investment. The approach provides a consistent stream of large earnings with little risk. Even if such a system works for a while, it will eventually run out of money. Hence, it is necessary for one knows how to identify and avoid such Ponzi schemes.
You want to see your family secured and happy at all times. You try your best to fulfill all the responsibilities, however, life is unpredictable. To protect your families against such adversities of life and to ensure that they are able to cope with any financial obligations, should anything happen to you, Kotak Life Insurance offers to you Kotak Preferred E-Term plan. Kotak Preferred E-Term plan is a pure risk cover that provides you with a high level of protection at an economical price. It comes with a disability advantage where in case of an unfortunate event if you are disabled during the Premium Payment Term your future basic premiums are waived and the plan continues.
An irrevocable trust is created to remove assets from the taxable estate and the grantor (or the grantor's spouse) is given certain powers that cause the trust to be a grantor trust from income tax purposes.
StockTakers TaxCharit€TM allows euro-small investors to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
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Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
NACM Agricultural Suppliers Meeting, Jan 20, 2017 at the Hilton Conference Center in Gainesville, FL. The slides accompany a presentation about how to explain agricultural concepts to the public, borrowing from what has been learned from psychology, crisis communication and public service.
A keynote symposium talk to Grow Canada, December 7, 2016. The topic was the effects of climate change and how ag producers and agricultural researchers are studying opportunities to adapt to warmer temperatures. The session focuses on communications strategies that emphasize adaptation over the contentious issues of cause or mitigation. The hope it to continue productive agricultural production without becoming mired in policy discussion, and the science of adaptation will inform discussion in climate change cause and mitigation.
How should one spot and avoid a Ponzi Scheme?Albert Stark
A Ponzi scheme is a fictitious investment. The approach provides a consistent stream of large earnings with little risk. Even if such a system works for a while, it will eventually run out of money. Hence, it is necessary for one knows how to identify and avoid such Ponzi schemes.
In a Ponzi scheme, a con artist offers investments that promise very high returns with little or no risk to their victims. The returns are said to originate from a business or a secret idea run by the con artist. In reality, the business does not exist or the idea does not work in the way it is described.
A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers.
The Ultimate Guide to Real Estate CrowdfundingSteven Lo
By now, most people have heard of Real Estate Crowdfunding, but how exactly does it work? 4+ years after Obama signed the JOBS Act, which essentially opened the lane for Real Estate Crowdfunding to exist, and there are over 150 companies competing to get ahead in the industry.
In this thorough guide to Real Estate Crowdfunding we take a look at how investments work, pertinent rules and regulations, current players in the industry, and more.
13 Investment FundamentalsYOU MUST BE KIDDING, RIGHTTwins T.docxaulasnilda
13 Investment Fundamentals
YOU MUST BE KIDDING, RIGHT?
Twins Tiffany and Taylor Jackson have worked for the same employer for many years. Tiffany started early to save and invest for retirement by putting $5000 away each year for 15 years starting at age 25 and never added any more money to the account. Taylor waited until age 40 to begin saving for retirement and he invested $5000 per year for 25 years until retirement at age 65. Assuming that they both earn a 6 percent annual return, how much more money will Tiffany have accumulated for retirement than Taylor by the time they reach age 65?
A. $ 98,919
B. $174,231
C. $274,323
D. $373,242
The answer is A, $98,919. Tiffany's account balance at age 65 is projected at $373,242 and Taylor's is $274,323. Even though Tiffany saved for only 15 years compared with Taylor's 25 years of saving, Tiffany's long-term investment approach had her starting to save early in her working career for retirement. Thus, she accumulated 36 percent more money than her brother ($373,242 – $274,323 = $98,919/$274,323).Starting early on long-term investment goals is a money-winning idea!
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
Explain how to get started as an investor.
Identify your investment philosophy and invest accordingly.
Describe the major risk factors that affect the rate of return on investments.
Decide which of the four long-term investment strategies you will utilize.
Create your own investment plan.
Use Monte Carlo Advice when investing for retirement.
WHAT DO YOU RECOMMEND?
Shavenellyee and Sarena are sisters, both in their 20s. Shavenellyee drives a leased BMW convertible, and she makes about $42,000, including tips, as a part-time bartender at two different restaurants. Although she has no employee benefits, she enjoys having flexible work hours so that she can go to the beach and the local nightspots. Currently, Shavenellyee has $10,000 in credit card debt. She has $1500 in a bank savings account, and two years ago she opened an individual retirement account (IRA) with a $1000 investment in a mutual fund. Her sister Sarena drives a paid-for Honda CR-V, pays her credit card purchases in full each month, and sacrifices some of her salary by putting $100 per month into her employer's company stock through her 401(k) retirement account. Over the past seven years, the stock price, which was once about $40, has risen to almost $70, and Sarena's 401(k) plan is now worth about $16,000. Sarena also has invested about $14,000 in a Roth IRA mutual fund account that is currently invested in an aggressive growth mutual fund, and she plans to use that money for a down payment on a home purchase. She earns $58,000 as a manager of a restaurant, plus she receives an annual bonus ranging from $2000 to $4000 every January that she uses for a spring vacation in Mexico. Sarena's employer provides many employee benefits.
What do you recommend to Shavenellyee and Sarena on the subject of ...
13 Investment FundamentalsYOU MUST BE KIDDING, RIGHTTwins Tkendahudson
13 Investment Fundamentals
YOU MUST BE KIDDING, RIGHT?
Twins Tiffany and Taylor Jackson have worked for the same employer for many years. Tiffany started early to save and invest for retirement by putting $5000 away each year for 15 years starting at age 25 and never added any more money to the account. Taylor waited until age 40 to begin saving for retirement and he invested $5000 per year for 25 years until retirement at age 65. Assuming that they both earn a 6 percent annual return, how much more money will Tiffany have accumulated for retirement than Taylor by the time they reach age 65?
A. $ 98,919
B. $174,231
C. $274,323
D. $373,242
The answer is A, $98,919. Tiffany's account balance at age 65 is projected at $373,242 and Taylor's is $274,323. Even though Tiffany saved for only 15 years compared with Taylor's 25 years of saving, Tiffany's long-term investment approach had her starting to save early in her working career for retirement. Thus, she accumulated 36 percent more money than her brother ($373,242 – $274,323 = $98,919/$274,323).Starting early on long-term investment goals is a money-winning idea!
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
Explain how to get started as an investor.
Identify your investment philosophy and invest accordingly.
Describe the major risk factors that affect the rate of return on investments.
Decide which of the four long-term investment strategies you will utilize.
Create your own investment plan.
Use Monte Carlo Advice when investing for retirement.
WHAT DO YOU RECOMMEND?
Shavenellyee and Sarena are sisters, both in their 20s. Shavenellyee drives a leased BMW convertible, and she makes about $42,000, including tips, as a part-time bartender at two different restaurants. Although she has no employee benefits, she enjoys having flexible work hours so that she can go to the beach and the local nightspots. Currently, Shavenellyee has $10,000 in credit card debt. She has $1500 in a bank savings account, and two years ago she opened an individual retirement account (IRA) with a $1000 investment in a mutual fund. Her sister Sarena drives a paid-for Honda CR-V, pays her credit card purchases in full each month, and sacrifices some of her salary by putting $100 per month into her employer's company stock through her 401(k) retirement account. Over the past seven years, the stock price, which was once about $40, has risen to almost $70, and Sarena's 401(k) plan is now worth about $16,000. Sarena also has invested about $14,000 in a Roth IRA mutual fund account that is currently invested in an aggressive growth mutual fund, and she plans to use that money for a down payment on a home purchase. She earns $58,000 as a manager of a restaurant, plus she receives an annual bonus ranging from $2000 to $4000 every January that she uses for a spring vacation in Mexico. Sarena's employer provides many employee benefits.
What do you recommend to Shavenellyee and Sarena on the subject of ...
Presentation at the Vaughan, Ontario, Canada Business Series with Panelists: Jim Turner, VP of Ontario Securities Commission, Christopher Charlesworth and Hivewire, Adam Spence, SVX
14 Outdated Investing 'Rules' You Don't Need To Follow AnymoreScott Tominaga
As the times change, so does the world of finance. Some investors are still stuck on “rules” of investing that have become obsolete, and sticking with these old adages may hurt you in the long run.
1. Title: 7 Infamous Investment Scams in Singapore & How You Can
Avoid One
SUMMARY
7 Infamous Scams In Singapore
Checklist for Detecting Scams
1. Introduction
Cases of investment scams are on the rise. Here are 7 infamous
Investment Scams in Singapore. Be careful not to fall for seemingly ‘too
good to be true’ investment schemes!
1.1 Sunshine Empire Ponzi Scheme
Source: Asiaone
In 2006, thousands of Singaporeans invested in approximately 26,000
lifestyle packages, which ranged from $240 to $12,000. The company
lured investors by offering packages that would pay out rebates monthly,
with an overall return of 160% of their initial investment within 1 year.
For example, an investor who bought a Gold package worth $12,000
could end up with total payout of $19,200 after 15 months. Sunshine
Empire paid their older investors from the money they got from new
investors.
2. In 2007, authorities raided the company and only managed to recover
$21million out of the $190million from unsuspecting investors.
1.2 Genneva Gold & Valiant Capital Scam
Source: thestar.com
In 2010, investors bought into a Gold-buyback scheme with Singapore
based company, Genneva Gold and Valiant Capital.
In the same year, Mr Simon Goh, previously a relations executive of
Genneva Gold sold investors 1kg of Gold bar for about $60,000 with a
promise of receiving $1500 monthly dividends. The company was raided
by authorities in 2012.
Mr Goh then proceeded to set up another company called Valiant Capital
in 2013 with the same Gold-buyback scheme. Valiant Capital soon
stopped paying monthly dividends to its investors after several months.
It was revealed that 10,000 investors had lost their money to Genneva
Gold and about 300 investors had lost their money to Valiant Capital. Mr
Goh has been uncontactable ever since.
1.3 Gold Guarantee Scam
3. Source: btinvest.com
In 2012, a similar gold buyback scheme by a Singapore based company,
Gold Guarantee had scammed hundreds of investors.
Gold Guarantee sells gold to customers and lured them by offering
discounts. When the date of the contract is up, customers have the choice
of selling the gold back to the company at a return of 100%.
The main difference between Genneva and Gold Guarantee is that Gold
Guarantee limits their daily gold transaction, creating an illusion of scarcity.
Investors have to pay a booking fee of $2/gram to purchase gold from
them.
In 2013, Lee Song Teck, Founder of Gold Guarantee ran away with
investor’s money and he remains uncontactable till date.
1.4 EcoHouse Property Development Scam
4. Source: todayonline.com
In 2011, about 2000 investors globally, including 800 investors from
Singapore invested about $65million into EcoHouse. EcoHouse is a
London-based company which falsely claimed that they were working with
the Brazilian government to develop housing for the less fortunate people
of Brazil.
Investors were then asked to invest at least $47,150 to help fund
EcoHouse’s property developments with the promise of getting 20% fixed
rate of return per year. However, investors did not receive any payments
after investing.
Hundreds of Singaporeans are still looking to reclaim their losses.
1.5 Tropical Forestry Ventures Investment Scam
5. Source: Ecotechalliance
In 2013, about 70 investors which included Singaporeans and foreigners
invested a range of $5,000 to $60,000 into Tropical Forestry
Ventures(TFV), a firm based in Singapore.
Investors were induced to buy saplings and semi-mature trees which
could be sold for up to 700% once they were fully grown a couple of years
in the future.
After investors bought the saplings and semi-mature trees, TFV was shut
down and was taken over by Tropical Forestry Assets
Management(TFAM) which asked for top-ups from investors to maintain
or upgrade their trees before they could be sold for profit.
Investors paid the balance amount to TFAM but was later told that the
amount was for a new batch of trees and not for the previous batch under
TFV. TFAM denied any relations with TFV.
Affected investors have made police reports and the case is still under
going investigation.
1.6 Suisse International’s Gold Buyback Scam
6. Source: Singapore.coconuts.co
In 2015, 250 investors were victims of another gold buy-back scheme.
They invested approximately $35million in a gold buyback scheme with
Suisse International but claimed that they did not receive their promised
monthly payouts.
The company would present themselves in a genuine light by allowing
investors to take the physical gold home. Investors were lured by the
promise that the company would buy the gold back at the original price
regardless of the fluctuation of market prices.
Furthermore, investors expected a monthly payout of $1,000 for every
kilogram of gold purchased, which is a return of about 20%. Investors
were also given further discounts when they referred their friends to the
scheme.
1.7 Keystone Trading Offshore Betting Scam
7. Source: bandt.com
In October 2016, 20 Investors invested approximately $1million into
Keystone Trading, an offshore arbitrage betting company and were
promised returns of up to 10% every month, but they were not paid a
single cent.
The program was ran by a Singaporean man, Mr Alvin Ang who claimed
that his boss named Sky had ran away with the money and promised
investors to look for him. He further assured investors that the betting
programme was legal as the bets were placed overseas.
Police reports has been lodged against Mr Ang and Mr Ang became
uncontactable ever since.
2. Checklist for Detecting Investment Scams
2.1 Sounding Too Good to Be True
8. It is highly risky for any investment vehicle to promise that you will receive
extraordinary returns. Be aware of investment schemes that claim that you
will be able to make “HUGE upside with little to NO RISK!”. Do note
that all forms of investments come with some form of risks.
2.2 High & Guaranteed Returns
The reference point you can use is the investment return Warren Buffett
has generated for his company, Berkshire Hathaway. In case you are not
aware who is Warren Buffett, he is currently the 3rd
richest man in the
world and is known as The Oracle of Omaha. His return is about 29% per
annum bearing in mind that he is the greatest investor of all times.
So if you across anyone who said that they can promise you returns that
is close to what Warren Buffett is getting or even higher that what he is
getting, it should be a red flag for you.
2.3 Pressured to Take Action Instantly
Scammers often tell investors that their scheme is a once-in-a-lifetime
offer, which creates urgency and a tendency for investors to react
impulsively.
2.4 High Pressure Sales Tactics
Scammers usually try to make you have negative feelings about yourself
if you choose to say No. It is important that once you realize this, leave
immediately. Scammers rarely care about your needs when pressuring
you to invest, even if they do, it’s usually just a facade. Never tolerate
sales pressure when investing. Sleep over it and think it through carefully.
You may also discuss with your friends who are seasoned investors.
2.5 They Are Found in the MAS Alert List
Before investing your hard earned money, it is wise to always do your own
research on both the company and the person selling the scheme.
Thoroughly understand how the company make money by providing such
schemes by asking the presenter. If the presenter does not know or the
way they make money don’t make sense. Stay away!
You can also search the company on MAS Investor Alert List
http://www.mas.gov.sg/IAL.aspx?sc_p=A, which provides a list of
unregulated companies which may have been wrongly perceived as being
licensed or authorised by MAS. The list will be updated regularly. Please
exercise caution when dealing with these companies.
9. Overall, Warren Buffett has always advise investors that the Investing
Rule #1 is Never Lose Money, and Investing Rule #2 is Refer to Rule #1.
Do note that the money you have right now is gained through your hard
work and it took you years and lots of sweat to have what you have today.
If you want to know How to Invest Safely and Intelligently, click on the
picture below to join our Free Value Investing Masterclass or <<CLICK
HERE To Register>>
Geraint Liu
Research Analyst, Mind Kinesis Value Investing Academy
Disclaimer: Please note that all information stated in this article is just for education
purpose only and should not be used as any form of recommendation or advice.