SwissCash, an internet investment ponzi scheme that has caught many investors on fire a few years ago, has finally laid claim to a RM31million (USD9.1million) settlement with Malaysia's Securities Commission (SC).
Indeed, according to Zarinah Anwar, the Chairman of SC, investors who are successful in getting a restitution are fortunate given the elaborate scam by the Malaysian masterminds who went to great lengths to establish set-ups in a number of jurisdictions in an attempt to appear legitimate.
The SC initiated civil proceedings in the High Court against Albert Lee Kee Sien, Kelvin Choo Mun Hoe and Dynamic Revolution Sdn Bhd and last September, the court ordered them to pay US$83 million (RM280.62 million) — the estimate of total investments in the scam. The SC then obtained a worldwide Mareeva injunction restraining the defendants from disposing of their assets.
As for the investors, you have the SC to thank for as they rightfully have no obligation to the loss of your money in such schemes!
To recap, the scheme offered investors as much as 300% annual return of their investments and many were hooked by the "get rich quick" tags.
There is no doubt over some investors did get their payoffs but just like many of the other get-rich-quick schemes, this kind of scheme works like a musical chair. When the music stops, the ones caught without the chair will be punished or banished!
Despite the lessons learned, I am pretty sure schemes like this will continue to pop up in the future, mainly to take advantage of mankind's major weakness, i.e., GREED! Recently, i have come across another potential scam in-the-making investment scheme involving casino operation, with apparent connection with the upcoming Singapore's new casinos. Similarly, lofty returns were promised with further lavish incentives such as free Macau vacation tour and gifts in the form of gold chain or accessories.
DON'T BE THE ONE CAUGHT WITHOUT THE CHAIR WHEN THE MUSIC STOPS!
Monday, November 16, 2009
Lifeline For SwissCash Investors?
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2 comments:
Any investment scheme offering returns of 300% per annum really should be ringing alarm bells for investors - Always seek independent advice, the cost of advice will be small compared with losses is you invest in a scam
I believe it's human nature that most people are attracted to get-rich-quick scheme.
For me in fact i would lower the benchmark to 15% to 30% per annum on average. Any promises more than that could be unrealistic and could potentially ring the bell for caution.
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