A consumer approached me for help. She had invested $28,000 in an investment plan that was supposed to give her a monthly payment of $375 for 24 months and the full refund of her investment.
The plan was sold to her by a financial adviser working for a large, reputable life insurance company.
After receiving the payment for a few months, the payment stopped. She wanted to ask for a cancellation of the contract and a refund of her money. She was given a post dated cheque and after waiting for the due date, she was told that the company did not have the funds to pay her.
The documents for the contract showed that she had actually purchased 6 magnetic bangles which was supposed to be rented to users and the monthly payment was the rental fee for the bangles.
She had done some investigation and learned that the company promoting the scheme had been operating under various names for the last 20 years. She was surprised that they were allowed to continue for so long, cheating many people.
In her case, she was misled because the financial adviser, which is regulated by MAS, had recommended the investment to her and assured her that it was a safe and good investment to give her a retirement income. Instead, she lost her capital.
She allowed me to share this story to warn other consumers to be careful about the non-regulated products that are being marketed by financial advisers. The consumers could be easily misled.
She is keen to find a way to get back her money. I asked her to file a complaint against the financial adviser and also approach the Small Claim Tribunal to get her money back from the company that promoted the scheme.
Any helpful suggestions will be welcomed!
The plan was sold to her by a financial adviser working for a large, reputable life insurance company.
After receiving the payment for a few months, the payment stopped. She wanted to ask for a cancellation of the contract and a refund of her money. She was given a post dated cheque and after waiting for the due date, she was told that the company did not have the funds to pay her.
The documents for the contract showed that she had actually purchased 6 magnetic bangles which was supposed to be rented to users and the monthly payment was the rental fee for the bangles.
She had done some investigation and learned that the company promoting the scheme had been operating under various names for the last 20 years. She was surprised that they were allowed to continue for so long, cheating many people.
In her case, she was misled because the financial adviser, which is regulated by MAS, had recommended the investment to her and assured her that it was a safe and good investment to give her a retirement income. Instead, she lost her capital.
She allowed me to share this story to warn other consumers to be careful about the non-regulated products that are being marketed by financial advisers. The consumers could be easily misled.
She is keen to find a way to get back her money. I asked her to file a complaint against the financial adviser and also approach the Small Claim Tribunal to get her money back from the company that promoted the scheme.
Any helpful suggestions will be welcomed!
4 comments:
So this financial advisor, apart from working in a reputable insurance Company, is moonlighting in a ponzi investment scheme, selling some snake oil magnetic bangles.
If report to the Police, they won't take action unless there is a substantial quantity of complainants.
Small claims Court only could claim an amount not more than $5,000 as someone said.
Just cut loss, and move on.
Mr. Tan, you should ask this person to lodge with MAS to get this insurance adviser from an insurance company out of circulation and also publish the name of the company.
It is abetting and it is a crime to push the investment from this fly by night company.
Zhummmeng,
I am helping her to lodge a complaint with MAS against the financial adviser.
This case should be in the papers for all to know. Preferably, with a picture of that financial adviser. That would deter others from think of scamming more people.
Post a Comment