Saturday, December 22, 2012

Potential investment scam

A Poly student consulted me about this investment. He was introduced by his friend to two companies which made  vague presentations promising high return through landing bank, convertible bonds and pre-IPO shares allotted through private placement.  

He carried out his research on these two companies and their management from their websites and had a hunch that this could be another Ponzi scheme. Several of his friends and other teenagers that had invested tens of thousand of dollars into these companies. If this is a scam, he wanted them to be stopped before more people are caught in it.

I told him to collect evidence of the investments made by his friend. There is a law that issue of shares to the public require approval to be obtained from the Monetary Authority of Singapore These two companies could be breaking the law.


zhummmeng said...

There is one huge tsunami far greater then the Lehman or any debacles known in history. The epicentre is China and the magnitude is S$1.2 trillion in the form of wealth management products sold by or illegally sold through Hua Xia bank branch near Shanghai.
The Chinese regulator is in a quandary and dunno what to do.If not contained the contagion will be widespread and many financial centres may be affected and swept under.
It is beleived that these wealth products are operated on a Ponzi scheme. Many investors are still not paid on maturity.Protest has been going on for a week.
Maybe this kind of products are lucrative that many banks are rolling out products similar to this and if they are of the same scheme many of them will have to close down for the inevitable default and the tsunami will swarm and drown many countries.
Get ready for this big one, investor.

Unknown said...


I have been trying to find evidence of Chinese Banking high non peforming loan and other misdeeds. But against bad reports of CNBC and Bloomberg, I have found nothing bad about Chinese Banks.

The Hua Xia Bank Shanghai incidence, I could not find it in internet search. Could you give me the newspaper or any other links that report the incident?

My research shows that the 2 potential areas of troubles are loan to steel industries and loan to local governments.

zhummmeng said...

it was reported in Friday, 21st December ST and 20th December WallStreets Journal

Steven said...


is it like Ponzi scheme?

Steven said...

MAS need to be inform for all this....

Steven said...

Next Gold Company to Fall - The Gold Guarantee?

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