If someone finds a valuable property, it must be sent to the Police for safe-keeping, so that the owner can claim the item. Read this letter.
The owner can also offer a reward in the Lost and Found portal here. I hope that the Police will search this portal to locate the owner and encourage the owners of lost item to report in this portal.
Monday, May 3, 2010
Fake request for financial assistance
During the past month, I received this type of e-mail from two people that I knew. I suspect that they are fraud. Be careful. I hope that the Police will carry out a sting operation and catch the culprit. It is easy for the police to do it, if they are willing to take the trouble.
Hello,
How are you doing? I hope this email reaches you on time, i had a trip to the United Kingdom, but unfortunately for me i got mugged at the park of the hotel,all my cash, credit card and cell-phone were taken away from me. I don't even have a phone where i can be reached right now because of my hotel bill.
Presently my things are been held down by the hotel management due to my inability to pay the hotel bills which i currently owe, they even had to restrict my access to the hotel facilitates until outstanding bills are cleared and i don't have a dime on me again,i had to walk down to the city library in order to send you this email.
I need you to kindly assist me with about $2,780:08 USD so that i can settle the hotel bills and make arrangement to return back home, please let me know how much you can assist me with soonest.
Hello,
How are you doing? I hope this email reaches you on time, i had a trip to the United Kingdom, but unfortunately for me i got mugged at the park of the hotel,all my cash, credit card and cell-phone were taken away from me. I don't even have a phone where i can be reached right now because of my hotel bill.
Presently my things are been held down by the hotel management due to my inability to pay the hotel bills which i currently owe, they even had to restrict my access to the hotel facilitates until outstanding bills are cleared and i don't have a dime on me again,i had to walk down to the city library in order to send you this email.
I need you to kindly assist me with about $2,780:08 USD so that i can settle the hotel bills and make arrangement to return back home, please let me know how much you can assist me with soonest.
Investigate fraudulent practices
The Securities and Exchange Commission is charging Goldman Sachs for fraudulent practices in US courts. A letter published in the Straits Times asked the Monetary Authority of Singapore to take similar action against financial institutions for similar practices in Singapore. MAS has replied that the jurisdiction is different. Another person commented in my blog that fraud is fraud, regardless of jurisdiction.
Someone commented in my blog that such cases are complex and difficult to prove in court. I wish to take issue on this point. Fraudulent practices have to be investigated, if there are reasons to suspect that it has occurred and many hundreds of people are involved as victims. Only the authority (i.e. state or government) has the resources and power to carry out this investigation. The victims do not have the resources and power to take civil action.
After gathering the evidence, the authority has to bring the case in court and convince the judge that there was fraudlent intent. This may be difficult, but one should not shirk this responsibility. In many instances, the charged party may be willing to negotiate a settlement without admission of guilt and to compensate the victims or the state.
I applaud the attorney general of New York State for brining up the case against the financial institutions on the auction rate securities and on financial reinsurance. The financial institutions decided to settle the case out of court and agreed to make suitable compensations. It was not easy for the attorney general to take this task, but he did not find excuses to avoid the respnsibility.
I hope that our authority in Singapore will take the bold step to protect the reputation of Singapore as a safe place for people to invest their money here.
Tan Kin Lian
Someone commented in my blog that such cases are complex and difficult to prove in court. I wish to take issue on this point. Fraudulent practices have to be investigated, if there are reasons to suspect that it has occurred and many hundreds of people are involved as victims. Only the authority (i.e. state or government) has the resources and power to carry out this investigation. The victims do not have the resources and power to take civil action.
After gathering the evidence, the authority has to bring the case in court and convince the judge that there was fraudlent intent. This may be difficult, but one should not shirk this responsibility. In many instances, the charged party may be willing to negotiate a settlement without admission of guilt and to compensate the victims or the state.
I applaud the attorney general of New York State for brining up the case against the financial institutions on the auction rate securities and on financial reinsurance. The financial institutions decided to settle the case out of court and agreed to make suitable compensations. It was not easy for the attorney general to take this task, but he did not find excuses to avoid the respnsibility.
I hope that our authority in Singapore will take the bold step to protect the reputation of Singapore as a safe place for people to invest their money here.
Tan Kin Lian
High yields on matured policies
A life insurance company advertised the high return (over 5% p.a.) on its policies that has matured in recent years. There is a risk that the agents may mis-use this information to sell their current policies. The possible mis-use are:
a) The high yield was obtained during the past three decades under an environment of high interest rate and economic growth. The future economic environment is quite different.
b) The expenses in the past on the old products were much lower than the new products that are being marketed today.
If the agent or consultant tells you about the high yield, but did not tell you the two key factors (shown above), you should distrust the agent for not being transparent and honest.
When you get a benefit illustration from any insurance company, including one that advertised a high return on matured policies, look for the following:
a) Distribution cost as percentage of premium. If it is more than 50%, it is too high.
b) Look for the "effect of deduction" after 20 years or longer. If it is more than 20%, it is too high.
c) See the proportion of the maturity benefit that is "not guaranteed". Avoid policies that "bump up" the "non-guaranteed" bonus at the maturity date to show a high payout. You may not get this bonus, but it will be too late at that time.
You can get more information from my book, Practical Guide on Financial Planning. There is a table that shows the benchmark for the effect of deduction for various years to maturity.
a) The high yield was obtained during the past three decades under an environment of high interest rate and economic growth. The future economic environment is quite different.
b) The expenses in the past on the old products were much lower than the new products that are being marketed today.
If the agent or consultant tells you about the high yield, but did not tell you the two key factors (shown above), you should distrust the agent for not being transparent and honest.
When you get a benefit illustration from any insurance company, including one that advertised a high return on matured policies, look for the following:
a) Distribution cost as percentage of premium. If it is more than 50%, it is too high.
b) Look for the "effect of deduction" after 20 years or longer. If it is more than 20%, it is too high.
c) See the proportion of the maturity benefit that is "not guaranteed". Avoid policies that "bump up" the "non-guaranteed" bonus at the maturity date to show a high payout. You may not get this bonus, but it will be too late at that time.
You can get more information from my book, Practical Guide on Financial Planning. There is a table that shows the benchmark for the effect of deduction for various years to maturity.
Investigation of fraudulent practices
Hi Kin Lian,
The Straits Times Forum publised a letter entitled "Should MAS Act". A week later, the MAS gave a short reply which was off tangent to the key issue. The MAS said that the jurisdications are different.
In the case of the US, the SEC filed charges of malpractices and fraud against Goldman Sach. It was not about breaching regulations of the US jurisdiction, but was about fraudulent practices and non-disclosures. Fraud is fraud regardless of the jurisdiction in question.
Resources and power to investigate and prove these are way above the capabilities any individual or group of individuals possess. Investigations with access to confidential documents can only be done successfully, just like in the US, with the direct involvement of the authorities.
There are circumstantial evidence to warrant investigations in the US. Goldman Sach in its defence was also reported (in ST's May 2) to have alleged that other US investments banks were also doing similar things, not just it alone. That proves the point of how predatorial these banks were back then and operating in packs.
How can MAS totally ignore this course of action of investigation when even countries in Europe may also be following in the US footsteps.
Of course, entities like Morgan Stanley are innocent until proven guilty. But how can they ever be proven guility if MAS refuses to investigate. What's in MAS's minds and agenda is anyone's guess. But it will be a Himalayan task to attempt a private class action suit in the US on transactions booked in Singapore without the sympathetic support and empowerment of local authorities.
The Straits Times Forum publised a letter entitled "Should MAS Act". A week later, the MAS gave a short reply which was off tangent to the key issue. The MAS said that the jurisdications are different.
In the case of the US, the SEC filed charges of malpractices and fraud against Goldman Sach. It was not about breaching regulations of the US jurisdiction, but was about fraudulent practices and non-disclosures. Fraud is fraud regardless of the jurisdiction in question.
Resources and power to investigate and prove these are way above the capabilities any individual or group of individuals possess. Investigations with access to confidential documents can only be done successfully, just like in the US, with the direct involvement of the authorities.
There are circumstantial evidence to warrant investigations in the US. Goldman Sach in its defence was also reported (in ST's May 2) to have alleged that other US investments banks were also doing similar things, not just it alone. That proves the point of how predatorial these banks were back then and operating in packs.
How can MAS totally ignore this course of action of investigation when even countries in Europe may also be following in the US footsteps.
Of course, entities like Morgan Stanley are innocent until proven guilty. But how can they ever be proven guility if MAS refuses to investigate. What's in MAS's minds and agenda is anyone's guess. But it will be a Himalayan task to attempt a private class action suit in the US on transactions booked in Singapore without the sympathetic support and empowerment of local authorities.
Abuse of car horn
In some cities, it is an offense to use the car horn. except in an emergency or to avoid an accident. The abuse of the horn disturbs the tranquility and affects other car drivers and the public. Car drivers in Singapore have a bad habit of using the horn to express their anger. I hope that this is treated as a public nuisance.
Restructuring of bankrupt companies
Large fees are paid to accountants, lawyers and consultants to handle the restructuring of bankrupt companies. They have to be borne by the shareholders who already lost so much value in their investments. Read this report.
My comment
This is clearly excessive, but nobody seems to care. We are in a world of greed and immorality.
My comment
This is clearly excessive, but nobody seems to care. We are in a world of greed and immorality.
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