Angry investors who lodged a police report at the Pekan Kinrara station. Waiting for answers:
His first investment scheme failed with losses estimated at between RM400mil and RM1.7bil but JJPTR founder Johnson Lee has brazenly come up with a new one offering even higher returns of 35% a month and with a car, motorcycles and smartphones thrown in as lucky draw prizes. Many of his investors still have faith in him but those in another scheme, Change Your Life, are in a quandary. They now have to choose between getting lower returns or changing to ‘life points’ – and waiting.
Show me the money: Investors making enquiries at Icon City in Bukit Tengah, Bukit Mertajam. The money scam issue has got many who have parted with their savings feeling anxious
JJPTR offers ‘better’ plan
After the spectacular collapse of his previous financial scheme, purportedly because of a hacked account, controversial scheme operator Johnson Lee has rolled out a new plan, claiming to offer even better returns.
While JJPTR’s earlier scheme – which ended with RM500mil missing from the company’s account – offered returns of 20% a month, this new one offers 35%.
On top of that, it offers special lucky draws with a new car, motorcycles and smartphones as prizes.
What the company did not say in the shining glossary of the new plan is how Lee plans to address the US$400mil (RM1.73bil) losses he claims the company has incurred.
The new scheme also does not explain how he plans to repay those who lost their money to the earlier scheme.
The one-and-a-half minute video Lee uploaded shows that the new plan is based on a “split mechanism” and has three rounds.
The initial investment in US dollars is “split” or doubled in each round. Half of it is re-invested in the scheme and rolls over to the next round.
Each round lasts 10 days and investors are allowed to convert their earnings back to ringgit after three rounds.
Anyone who invests US$1,000 (RM4,331) is expected to receive US$450 (RM1,949) in each round, making it a return of US$1,350 (RM5,847) by the end of round three.
Under the proposed new scheme, investors will also be rewarded with JJ Points, which can be used in exchange for goods via its shopping platform JJ Mart.
The new scheme was announced by the 28-year-old Lee last Tuesday after news broke that his company had gone bust.
The company did not say when the new plan would start.
Attempts to contact Lee were futile and the number listed on the JJPTR Facebook page is already out of service.
A visit to the company’s offices in Penang showed that investors were no longer lining up for answers.
Instead, the staff, who preferred not to be photographed, were seen sitting at empty counters.
Penang-based JJPTR, or Jie Jiu Pu Tong Ren in Mandarin (salvation for the common people), came under the spotlight when investors complained that they did not get their scheduled payment last month.
JJPTR, JJ Poor to Rich and JJ Global Network are among the entities listed as unauthorised companies under Bank Negara Malaysia’s Financial Consumer Alert.
Records from the Companies Commission of Malaysia showed that JJ Global Network was a “RM2 company” owned by Lee and his former girlfriend Tan Kai Lee, 24. Each hold a single share.
Lee’s father Thean Chye, 58, and Tan are also directors of another company called JJ Global Network Holdings Bhd.
Thean Chye, who was an assistant professor at Southern University College in Johor, resigned on Wednesday after the JJPTR losses came to light.
Source: The Star/ANN
Investor tells off staff after failing to get refund
Business as usual: Employees explaining the refund process and new scheme to investors at the JJPTR main office in Perak Road, Penang.
GEORGE TOWN: An investor, frustrated over not getting a promised refund on his stake, told off several female employees at the main JJPTR office in Perak Road.
The man, in his 40s, was heard having an exchange of words with the staff after being told that it may take “a few more days” before he could get his money.
He told them Johnson Lee, the founder of JJPTR, had said that the money was refunded to JJ2 scheme investors some days ago.
“But until today, I haven’t got my money back.
“I just want to know if the refund has been made or are you in the midst of processing the refund?
“If he has not started the refund, just be honest with the investors.”
He insisted on getting a firm date on when he would get back his money but the employees replied that they would need at least five working days.
He then demanded their names but they refused him.
“You don’t even dare give me your names. If I want to lodge a report, I won’t be able to provide the police with details.
“And don’t tell me you need days for a bank transfer. It only takes hours,” he said.
As he left the office, several journalists approached him for comment but were turned down.
“I don’t want to talk to reporters. You are all just causing trouble for us. I can get things done on my own,” he said.
JJPTR, or Jie Jiu Pu Tong Ren (“salvation for the common people” in Mandarin), is a Penang-based company that came under the spotlight when its investors complained that they did not get their scheduled profits last month.
According to online and media reports, the investors stand to lose RM500mil. They reportedly number in the tens of thousands, comprising Malaysians and foreigners from Canada, the United States and China.
Lee, who has blamed the loss on hackers, put the figure at US$400mil (RM1.75bil) in a widely-circulated video clip.
JJPTR, JJ Poor to Rich and JJ Global Network are listed as unauthorised companies by Bank Negara Malaysia.
Source: The Star/ANN
JJPTR just trying to buy time, says ‘scam buster’
“Scam buster” Afyan Mat Rawi has ridiculed JJPTR’s new plan, calling it “unsustainable” and nothing but a forex scheme to placate angry investors.
Once a victim of an investment scam himself, the 37-year-old financial adviser said investors should stay away from the scheme, which he described as “illogical”.
“The investors are angry right now, and JJPTR is trying to pacify them by introducing this new plan.
“A 35% return at the end of the three rounds (one month) is illogical. Where would the company find all the money to reinvest?
“The new plan is just a way for them to buy time,” Afyan said.
He said any investment scheme promising returns of more than 15% in a year will ultimately collapse.
“No legitimate scheme will guarantee an annual return of more than 15%. Any scheme claiming to do otherwise has to be a scam.
“Like most other pyramid schemes, the (JJPTR) forex scheme will collapse when there is no entry of new investors.”
Afyan said that despite getting flak from investors after allegedly losing RM500mil due to its accounts being hacked, it was still “possible” for JJPTR to entice old and new investors to subscribe to the new plan, which promises higher returns and special lucky draws.
“Some investors may leave, because they no longer see hope but those in the “top tier” will continue finding new victims as they’ve already invested so much.
“Unfortunately, there will still be people who believe in them,” he related.
Commenting on a video of founder Johnson Lee announcing the new plan via JJPTR Malaysia’s Facebook page, Afyan said the laws in Malaysia were not harsh enough to serve as deterrent for so-called “scammers”.
He claimed that the only person to have been severely punished for operating an illegal investment scheme was Pak Man Telo, or Othman Hamzah, who was jailed and banished to Terengganu from Perak in the early 1990s.
Othman reportedly enticed 50,000 people to invest in his getrich-quick scheme, commonly known as the Pak Man Telo scheme, and managed to rake in RM90mil before being arrested, tried and sent to prison for two years. He died in Terengganu a few years later.
Ever since then, Afyan claimed, convicted scammers have been getting away easy.
“At most, scammers will be arrested and remanded. But you don’t hear about them serving time in prison. They’ve already made millions, billions, in profits.
“A penalty of a few thousand ringgit is nothing to them,” he said.
Afyan, who lost RM300 to a getrich-quick scheme while he was a university student in 2003, worked in Islamic insurance and financial planning after graduating.
He created a Facebook page in 2008 to share information on questionable investment opportunities, earning him the nickname “scam buster”.
He claims to have uncovered about 50 dubious companies so far.
Source: The Star/ANN
… And they still keep coming to invest
One more goes bust – after just two weeks
Life’s changing for investors in money-making scheme
Flashy ads, but no gain for investors
Scheme or scam?: Multi-level marketing companies often conduct presentations to potential members promising financial freedom and a
Trap – as long as there is greed, Ponzi schemes will always re-emerge. CALL them pyramid, Ponzi or get-rich-quick schemes and pe…