Even if you Receive Money, it can still be a Scam...

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Even if you Receive Money, it can still be a Scam...

Postby Dennis Ng » Sun Jul 04, 2010 8:27 am

I saw a posting that goes something like this in another internet forum, someone said:"

this is not a scam. I really receive money. Attached is the image of a cheque I received from this company.

End quote.

My comments:
just becos you receive money means it is NOT a scam?

How silly a conclusion to make!

You must find out where your money comes from. If the money comes from people who put in money after you, it is still a Ponzi Scheme (scam).

It is NOT a scam only and only if the money you receive is from actual profits made by a GENUINE business, not a Scam Business.

Paying you some money is one tactic such scams typically USE. Becos they know that human is by nature skeptical. However, many people have this "silly logic" of "If I see it, it must be real."

How silly!

Then whatever you see magicians perform on the stage must be real then? Is it real? The fact is it is just an ILLUSION.
That's why Magicians should actually not be called Magicians becos they cannot perform Magic but they are really just Illusionists.

Similarly, many scams would employ this "show you the money tactic" in order to convince you that it is NOT a scam (even when it is). And once you're convinced, what would you likely do?

Firstly, you will invest more money. Perhaps "re-investing" this cheque you just received.

Not only that, you got so excited that this is a real deal that you go around telling your loved ones, your relatives, your friends, your colleagues or even strangers on internet forums that this is real and you DRAG other people into this scam by showing this "silly" cheque you received.

If people want to choose to be blinded by greed, whatever I say will not go into their heads.

I just hope I can save some innocent people from falling into scams. It is why I strongly believe that if people raise their Financial Literacy, they'll be in better position to judge and not easily fall into scams.

Cheers!

Dennis Ng

What is a Ponzi Scheme?
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned.

The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments to investors. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities.

As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases. While the system eventually will collapse under its own weight, the example of Bernard Madoff demonstrates the ability of a Ponzi scheme to delude both individual and institutional investors as well as securities authorities for long periods:

Madoff's variant of the Ponzi scheme stands as the largest financial investor fraud in history committed by a single person. Prosecutors estimate losses at Madoff's hand totaling roughly $21 billion, as estimated by the money invested by his victims. If the promised returns are added the losses amount to $64.8 billion, but a New York court dismissed this estimation method during the Madoff trial.

The scheme is named after Charles Ponzi,[1] who became notorious for using the technique in early 1920. He had emigrated from Italy to the United States in 1903. Ponzi did not invent the scheme (Charles Dickens' 1857 novel Little Dorrit described such a scheme decades before Ponzi was born, for example), but his operation took in so much money that it was the first to become known throughout the United States.

His original scheme was in theory based on arbitraging international reply coupons for postage stamps, but soon diverted investors' money to support payments to earlier investors and Ponzi's personal wealth.
Last edited by Dennis Ng on Mon Apr 04, 2011 9:29 am, edited 1 time in total.
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
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Postby wemakebread » Sun Jul 04, 2010 4:52 pm

Hi friends,

Those who are interested can google for "HYIP".
It stands for High Yield Investment Programs.
The structure is mostly Ponzi in nature.
ie. newcomers feed those above & system collapse when insufficient newbies join the system to sustain payout to those who joined earlier.

The people who design & set up such HYIP are the real winners in this game. They are like the casino operators.
Would you prefer to be the BANKER or PLAYER?
Who has the favourable odds?
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Postby Dennis Ng » Sun Jul 04, 2010 8:33 pm

wemakebread wrote:Hi friends,

Those who are interested can google for "HYIP".
It stands for High Yield Investment Programs.
The structure is mostly Ponzi in nature.
ie. newcomers feed those above & system collapse when insufficient newbies join the system to sustain payout to those who joined earlier.

The people who design & set up such HYIP are the real winners in this game. They are like the casino operators.
Would you prefer to be the BANKER or PLAYER?
Who has the favourable odds?


yes, beware of HYIP. Thanks wemakebread for this warning.

As mentioned, in my Seminar, I shared that no doubt, we will all make Money after I shared in Seminar the Secrets of Making Money, however, we need to make sure we make money scrupulously, legally, ethically and morally. And best if we can make money Win/Win instead of Win/Lose.

So please do NOT get involved in any HYIP, whether as Banker or Player.
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng
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Postby Dennis Ng » Sat Jul 17, 2010 10:51 am

17 Jul 2010 - Do you know of anyone who fell into some of these scams, eg. Sunshine Empire?

Do you want to learn "How to Avoid Falling Into Scams?" Do you believe that by learning HOW to avoid scams, you can save lots of money which you might lose in Scams, and thus, by avoiding losses, you can move ahead financially?

Invest in Financial Knowledge, "How to avoid Falling into Scams" is one of the many things you will learn in "How to Save and Accumulate One Million Dollars" Seminar. Don't hesitate, learn ASAP. NOTHING is MORE Expensive than Ignorance.

Details of 1-FULL-Day Seminar "How to Save and Accumulate One Million Dollars" Seminar is here: http://www.masteryourfinance.com/web/in ... &Itemid=35


Court convicts Sunshine Empire trio
They pocketed at least $8 million through Ponzi-like scheme
By Khushwant Singh

THE flamboyant founder of Sunshine Empire, which amassed $180 million in 15 months, was found guilty by a district court yesterday for running a fraudulent scheme and for faking accounts.

James Phang Wah, 50, and former director Jackie Hoo Choon Cheat, 30, had enriched themselves by at least $8 million through Sunshine's multi-level marketing scheme.

Phang's wife Neo Kuon Huay, 47, was found guilty of falsifying payment vouchers together with Phang. They did this so that she could receive commissions amounting to nearly $1 million.

The trio will be sentenced on July 30.

Some 20,000 people bought into the flashy scheme, which promised high returns on its lifestyle packages.

Sunshine sold these packages at its plush Toa Payoh Central office for over 15 months, before it was raided by officers from the Commercial Affairs Department (CAD) in November 2007.

The packages ranged from $240 to $12,000 and offered attractive bonuses and incentives.

What was unique was its customer rebate points (CRP) system, which allowed participants to use the points to buy goods online.

Phang and Hoo had assured participants that CRP was derived from the firm's turnover on its e-commerce platform.

While this sounded impressive, District Judge Jasvender Kaur said it was essentially meaningless, because the e-commerce activity did not add to the firm's income as no revenue was generated for the firm.

Like other Ponzi-like schemes, rewards for participants came from fresh money secured from those joining later.

The judge noted it was clear that the two men misled participants and wanted to conceal the fact that the CRP return was paid out from the sale of new packages.

Noting that the CRP could come up to 160 per cent of the cost of a package, the judge said: 'The abnormally high returns were meant to dazzle and attract participants who had no in-depth knowledge of the scheme.'

Judge Kaur observed that it was a matter of time for such a business model to fail, and new participants would suffer a loss.

While $118 million of the $180 million collected was spent on rebates and incentives to push the purchase of more packages, much of the rest ended up in the pockets of the trio.

Phang pocketed US$5 million (S$7 million) in consultancy fees and allowances from the doomed venture.

Hoo collected about $950,000 by abetting Phang in criminal breach of trust. The two had paid Neo a commission of nearly $950,000 by dishonestly claiming she was the firm's group sales director.

The judge adjourned sentencing for two weeks to allow the trio's lawyers Subhas Anandan and Noor Mohamed Marican to prepare mitigation pleas.

The prosecution also intends to ask the trio to pay its costs in bringing the case to court.

Phang and Neo looked worried when Judge Kaur delivered the verdict to them but Hoo showed no expression.

Outside the courtroom, all three looked relaxed, chatting with about 20 supporters and family members.

All three still face charges of providing false declarations involving affiliated company Empire Communications Technology. Phang is also accused of possessing obscene and uncensored films.

Arrangements will now have to be made for a court to hear these charges.

Phang and Hoo face a maximum $15,000 fine and seven years' jail for fraudulent trading and a maximum of life imprisonment and a fine for the criminal breach of trust offences. The maximum penalty for falsifying accounts is seven years' jail with a fine.

A former director of Empire Investment Group has already been dealt with.

Yong Wai Hong, 28, was fined a total of $24,000 in July last year after he pleaded guilty to authorising a company secretary to give misleading returns to the Accounting and Corporate Regulatory Authority.

This false information had given Sunshine participants the wrong impression that its affiliate firms had strong financial standing.

khush@sph.com.sg
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
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Postby lootster » Sat Jul 17, 2010 4:58 pm

I personally came across lots of such scam and has learnt how to identify them.......

I have lost money in such scams too and have learnt through the hard ways.

I urged more Singaporeans to look out for such scams and report to the police straight if you are suspicious. You could have save someone else from falling into such traps.

Of cos the best way as what Dennis has always said is through Financial Literacy. Do attend his seminar to learn how to avoid being prey by scams.
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Postby Dennis Ng » Wed Aug 04, 2010 5:20 pm

this is a very good Real Life Example of "if you receive money, it can still be a scam".

THE flamboyant founder of Sunshine Empire, who amassed $180 million in 15 months, and his former director were jailed by a court on Friday for running a fraudulent scheme and for faking accounts.

James Phang Wah, 50, and former director Jackie Hoo Choon Cheat, 30, had enriched themselves by at least $8 million through Sunshine's multi-level marketing scheme.

Phang was sentenced to nine years jail and fined $60,000 while Hoo was jailed for seven years.

Phang's wife Neo Kuon Huay, 47, who was found guilty of falsifying payment vouchers together with Phang, was fined $60,000. They did this so that she could receive commissions amounting to nearly $1 million.

Some 20,000 people bought into the flashy scheme, which promised high returns on its lifestyle packages.

Sunshine sold these packages at its plush Toa Payoh Central office for over 15 months, before it was raided by officers from the Commercial Affairs Department (CAD) in November 2007. The packages ranged from
$240 to $12,000 and offered attractive bonuses and incentives.

What was unique was its customer rebate points (CRP) system, which allowed participants to use the points to buy goods online. Phang and Hoo had assured participants that CRP was derived from the firm's turnover
on its e-commerce platform.

Like other Ponzi-like schemes, rewards for participants came from fresh money secured from those joining later.
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng
Site Admin
 
Posts: 9781
Joined: Tue Nov 29, 2005 7:16 am
Location: Singapore

Even if you Receive Money, it can still be a Scam

Postby winstonteo » Tue Nov 29, 2011 7:47 pm

Hi lootster,

Would you mind sharing what scams you came across, in additional to the method you learnt to identify them? Thanks.

Dennis has shared quite a few story with us in this forum and during his seminar. But i like to hear more if there's any available as I believe the scammers nowadays are also smarter in creating new technique in attract new investors.

lootster wrote:I personally came across lots of such scam and has learnt how to identify them.......

I have lost money in such scams too and have learnt through the hard ways.

I urged more Singaporeans to look out for such scams and report to the police straight if you are suspicious. You could have save someone else from falling into such traps.

Of cos the best way as what Dennis has always said is through Financial Literacy. Do attend his seminar to learn how to avoid being prey by scams.
winstonteo
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Posts: 38
Joined: Mon Oct 10, 2011 2:30 pm
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