Note: If you are trapped in this type of investment and wish to meet other investors in similar situation, give your details HERE.
A company selling foreign land plots and other products gave a put option to the investor to sell back the product at the end of 6 months with interest at 12.5%. Many investors invested on this product on the basis of the put option. At the end of 6 months, the investor exercise the put option, but the company refused to honor it. They gave many excuses and did not pay back the money as promised. In the meantime, the company continued to sell similar products to many new investors.
The investors were at a loss. Some engaged a lawyer to take legal action, but it is taking a long time, is costly and uncertain. Some complained to the authority, but were told that it is a civil matter for which they have to engage a lawyer. What is the best way for the investor to act now?
Can the authority stand by and do nothing, while more investors are being trapped in this type of investment?
Tan Kin Lian
who asked the investor to be greedy and did not invest with their eyes open?
ReplyDeleteAfter receiving a few complaints, can the authority sit idly by and allow the company to sell similar products to trap new investors?
ReplyDeleteIf this is allowed, I know how to make fast money in Singapore. It is so easy.
ReplyDeleteThis amounts to raising public monies with a promised return. Although in the name of buying land. How can the authority not regulate this ?
ReplyDeleteAs long as the investors are not Town Councils, MPs or MPs' family or children, authority will sit idly and prepare for election i.e. make sure GDP number is good.
ReplyDeleteMAS cannot "Micro-manage" thus it is alright to let all kinds of products in and just blame the investors for being greedy when something happens.
So you see, MAS is just waiting for the Chairman or Deputy Chairman to tell them what to do next. The important message now is prepare for the next election....
Someone told me that she met an investor who has been waiting for 2 years for the money to be paid back. Meanwhile, the investor's husband has lost her job and they are in financial stress.
ReplyDeleteI have also spoken to an investor who approach me for help 9 months ago. After waiting for 9 months, he has still not be paid. In the meantime, he gets one promise after another, and the money keeps being delayed.
It is very stressful for the investor. Some game up and wait off the money as being gone forever.
But they ask me, "Mr. Tan, this company continue to sell the product to other investors. Are they using the new investor's money to pay off the old investor, like a ponzi scheme?"
In Singapore it is a buyer beware market so if you are not careful, bad luck and all your saving gone. That is why I now tell people to place just fixed deposits split into as many banks as you can to get guarantee converage and let inflation eat up the money but at a slower pace than get cheated.
ReplyDeleteWhy NOT Expose the name of the Company? It will warn future investors to be careful!
ReplyDeleteIf Loanshark activities are considered illegal here, then why allow scam companies to operate freely?
ReplyDeleteDon't expect MAS to help, gone case
ReplyDeletealready.
So much for PAP's vision of a financial hub. Maybe rename it to Scam Hub, lol.
ReplyDeleteDid any of the 'victims' try going to the press? Some negative publicity will help raise awareness to potential 'investors' and maybe force the garmen to look into the matter.
ReplyDeleteHi Mr Tan,
ReplyDeleteI agree with you, the stress of waiting if the money will be paid back to you. You can't really carry on with your life well especially with something on the back of your mind. Hoping for the best, its an anxious, stressful wait.
Do keep it up with your blog to financially educate all of us, hopefully more and more people will know and read your blog. This is a good way to educate the public. Keep it up.
"Can the authority stand by and do nothing, while more investors are being trapped in this type of investment?"
ReplyDeleteOf course they can. Firstly, they are not affected themselves. Secondly, the majority 66% are fully behind them and beg them to do whatever they like.
We saw it already with the minibond saga.
Somebody asked me to name this company. There is no need to. If you see this type of investment, you have to avoid it at all cost, regardless of which company markets it.
ReplyDeleteIf you need the name to be told to you, you deserve to be cheated of your money in the future.
See their own MP.
ReplyDelete5 investors have replied to my survey. I hope that more investors will come forward.
ReplyDeleteSince most investors invested on the basis of the put option, then I believe the condition of the put option must be clearly stipulated in the contract signed between the investors and the company that sold the products.
ReplyDeleteIf the investors exercised the put option and the company did not want to honour it, then the investors could simply sue the company for breach of contract. It should be quite a clear cut case. Why it took so long for such cases to be settled in Singapore.
There is no point to name the company(ies) since they can change their names and do the same business to cheat people's money again.
ReplyDeleteIf an investment proposal is too good to be true, just don't buy into it. The risk is high and not worth taking even if someone able to proof that they received the promised return. Who knows, these previous investors may be the sale agents of the scheme.
Yes, the authority must take action. At least, they should issue official warning of such scheme is on-going and ask people to watch out.
CCl
Hi Mr Tan. Since 5 of the investors have already responded, what are the next steps for them? Some of them may be in touch with other investors who have been affected but who are not aware of this blog. They may be roped in if some concrete actions are being mooted in the collective.
ReplyDelete