I have posted this article about a possible ponzi scheme that may blow up in the near future: http://tankinlian.com/admin/file.aspx?id=637
One reader, who has made large investment in the gold bar scheme, told me that the chance of loss is small, as the investor has a certificate that can be used to withdraw the physical gold that has been deposited with a reputable depository bank. If the gold price keeps its value, the investor will not lose out, even if the promoter does not honor the buy back guarantee.
This is likely to be a fallacy. It is possible for the promoter to be issuing duplicate certificates for the same physical gold. If the promoter collapses, many people may be holding the certificates to the same bar of physical gold. I do not know if the certificate is issued by the depository bank and if there is any chance of duplicates being made. The investor should check this possibility.
A ponzi scheme can continue as long as it keeps growing. This is likely to be the case, as the investor loves the 2% interest per month and will keep their investment to earn this high rate of interest. They are likely to put in more money and to encourage their friends to join this attractive scheme. The growth of a ponzi scheme is exponential. This is the behavior of most ponzi schemes in the past. It will not be different this time.
The investor also asked - if this is really a ponzi scheme, why is the Monetary Authority of Singapore or the Commercial Affairs Department not taking any action to stop it?
Do not be lulled by the lack of action by our authority. The MAS has already put an alert on their website and asked the public to lodge a complaint with CAD, if they suspect any fraud. I do not know why MAS expects the public to do the investigation. It is quite easy for MAS to engage an investigator, at the cost of the Government, to see if there is any risk of a fraud, rather than wait for it to happen.
My remark also applies to the Commercial Affairs Department. They have the power, authority and the resources to carry out an investigation. They only need to have reasonable grounds to make an investigation into a potential ponzi scheme. I do not know why they hold the view that there is inadequate evidence to start an investigation. If they do not think that an investigation is warranted, why not just make an enquiry?
My remark is also directed at our Government Ministers who might have some of their underlings to monitor my blog. Do not sit idly and wait for the potential ponzi scheme to grow bigger and cause more people to lose their hard earned savings. Just make an enquiry now with the promoter and make sure that they have sufficient gold bar and money to back all the deposits that they have collected from the public. And when they are talking to the promoter, do find out how much money has been invested by the people of Singapore in this attractive investment scheme that pays 2% interest a month.
My request is specially directed to our Deputy Prime Minister and Minister for Home Affairs, who should in charge of the Commercial Affairs Department.
Tan Kin Lian
PS: If the authority does make an enquiry and find that my suspicious are groundless, do tell me about it, so that I will stop "crying wolf".
One reader, who has made large investment in the gold bar scheme, told me that the chance of loss is small, as the investor has a certificate that can be used to withdraw the physical gold that has been deposited with a reputable depository bank. If the gold price keeps its value, the investor will not lose out, even if the promoter does not honor the buy back guarantee.
This is likely to be a fallacy. It is possible for the promoter to be issuing duplicate certificates for the same physical gold. If the promoter collapses, many people may be holding the certificates to the same bar of physical gold. I do not know if the certificate is issued by the depository bank and if there is any chance of duplicates being made. The investor should check this possibility.
A ponzi scheme can continue as long as it keeps growing. This is likely to be the case, as the investor loves the 2% interest per month and will keep their investment to earn this high rate of interest. They are likely to put in more money and to encourage their friends to join this attractive scheme. The growth of a ponzi scheme is exponential. This is the behavior of most ponzi schemes in the past. It will not be different this time.
The investor also asked - if this is really a ponzi scheme, why is the Monetary Authority of Singapore or the Commercial Affairs Department not taking any action to stop it?
Do not be lulled by the lack of action by our authority. The MAS has already put an alert on their website and asked the public to lodge a complaint with CAD, if they suspect any fraud. I do not know why MAS expects the public to do the investigation. It is quite easy for MAS to engage an investigator, at the cost of the Government, to see if there is any risk of a fraud, rather than wait for it to happen.
My remark also applies to the Commercial Affairs Department. They have the power, authority and the resources to carry out an investigation. They only need to have reasonable grounds to make an investigation into a potential ponzi scheme. I do not know why they hold the view that there is inadequate evidence to start an investigation. If they do not think that an investigation is warranted, why not just make an enquiry?
My remark is also directed at our Government Ministers who might have some of their underlings to monitor my blog. Do not sit idly and wait for the potential ponzi scheme to grow bigger and cause more people to lose their hard earned savings. Just make an enquiry now with the promoter and make sure that they have sufficient gold bar and money to back all the deposits that they have collected from the public. And when they are talking to the promoter, do find out how much money has been invested by the people of Singapore in this attractive investment scheme that pays 2% interest a month.
My request is specially directed to our Deputy Prime Minister and Minister for Home Affairs, who should in charge of the Commercial Affairs Department.
Tan Kin Lian
PS: If the authority does make an enquiry and find that my suspicious are groundless, do tell me about it, so that I will stop "crying wolf".
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