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".
If the govt steps in now to nip the problem in the bud, the problem may be solved and no one will know about it. This means the govt cannot trumpet it. That is why normally they do not take pre-emptive action.
ReplyDeleteIf the govt steps in now to nip the problem in the bud, what is there for them to trumpet?
ReplyDeleteDear Tanakow,
ReplyDeleteI think that the problem is more than a bud now. It was a bud two years ago. Today, it could be very, very big - maybe tens or hundreds of million dollars. We do not know how big it is. Perhaps, the CAD or DPM should just make an enquiry?
Hi mr tan, actually this scheme has been around for a long time - its called fractional reserve banking.. Last time, during the gold standard, money was tied to gold and banks could loan out more gold than they actually had.. Now gold has been replaced with fiat money - printed at will by the central banks..
ReplyDeleteym
One of the underlings was angry at my posting. She told me rudely to make a Police report, rather than to post this vague allegation in my blog.
ReplyDeleteI wanted her, and her minister, to know that I had made a report to the Commercial Affairs Department on another alleged fraud. This report was made in conjunction with another person, who had painfully investigated the alleged fraud for quite some time, and had compiled a dossier of documents that provide evidence of the offence.
The CAD officer decided, after over two months, that there was insufficient evidence for them to investigate the matter.
We learned later, that the CAD officer did not even call up the alleged offender to ask him to give an explanation to the issues that were raised.
If a carefully prepared report with documentary evidence could be ignored in this manner, there is little chance for my "suspicion" to be given any consideration.
In case the underling and her minister does not know, the ordinary citizens do not have the authority, power or resources to carry out any investigation or enquiry.
I wish to post this comment here, so that the underling can report this state of affairs to her minister.
I did not post the comments from the underling, as she has a habit of attacking me in my blog and Facebook. She was quite rude in challenging my views and did so just for the sake of rebuttal. I suspect that she is under orders to monitor my blog.
Should be very clear to citizens by now, our Govt wan to make governing Singapore as easy as ABC, they enact convenient laws to solve cases as quickly as possible with not much investigative work done like, "You have sex with a minor, that's it, you contravened the law enacted by us, then you have to go to jail, better plead guilty and stop wasting our time."
ReplyDelete"If you wan to invest in all SIP and other investment products, even those vetted by us for sale, that's it, you take your own responsibility, dun come to trouble us should they go bust."
So easy to govern Singapore in this way, at the same time washing their hands off all responsibility and accountability, all they wan is you people pay me high, high to do the easy job, Holy Cow, even an idiot could govern Singapore in this way, why pay miliions of $ to these people. Taxpayers, bo hua ah.
Dear Mr Tan,
ReplyDeletecan you please help me? I am also a victim to such ponzi.