Never-ending money games – from fixed return to split schemes


The allure of money game schemes (or money games) seems not to have diminished despite the collapse of many recently.

Instead, there has been a switch in investors’ focus from fixed-return games to split games, which are deemed “more sustainable”.

Fixed-return schemes generally refer to those that give a consistent percentage of return every month or week. However, most of them have collapsed lately.

Investors’ attention is now centred on split games, even though this means they have to wait for a longer period in order to get back their capital.

Mcoin, which is undertaken through MBI International Sdn Bhd and MFace International Sdn Bhd, is an example of a split game based on units of which the value keeps increasing and then split after a certain time.

However, with the raid of MBI’s flagship mall – M Mall in Penang – by the regulators recently, its days look to be numbered, and the sustainability of such schemes is now a big question.

Another prominent split game – Mama Captain, which has a similar business model to that of Mcoin – has also been red-flagged by Bank Negara last Thursday under the Financial Consumer Alert List. An additional 14 companies have been added to the list, bringing the total number of unapproved and unlicensed companies/schemes to 334 as at June 29.

Besides the local ones, there are several foreign schemes in the market, which investors expect to have more staying power than the fixed-return schemes. Two such schemes from China – Smart Traders Ltd and Centennial Coin of Prosperity – have been in operation in Malaysia since last year. However, it is understood that they have stopped distributing returns to their investors.

This, however, appears not to have deterred those who are lured by the promise of fast money. This is evidenced by the huge crowd seen at an event organised by a split game company a few weeks ago in Shah Alam. It was estimated that over 2,000 participants were present and most of them were Chinese investors.

A number of booths were set up at the venue, and investors were able to redeem a variety of stuff, including vouchers, health products, apparels and many more.

An investor whom SunBiz spoke to at the event said he is unfazed by the collapse of money games and is optimistic about the prospects of the split game that he is involved in.

The investor said he has been in the scheme for more than nine months and now it has started to bear fruit.

“Generally, it takes about two months to split once and we can start generating money after it splits for four times. Now I start to get money from the scheme. While you’ve to wait for some time before getting any return, I think it is still worth to join,” he opined.

It is understood that the scheme has tied up with a few product operators to increase its attractiveness.

Another investor, Alan Mu, said he was amazed by the event. “The gala dinner is so grand and there are so many products that I can redeem by participating in this scheme,” he said.

Another scheme that has caught the market’s attention is SV International (SVI), a company that Yong Tai Bhd has denied having links to. Yong Tai alleged that SVI circulated photos taken during a signing ceremony on SVI’s website as well as the social media, for which there was no official agreement entered into between the two parties thereafter.

Yong Tai also refuted speculation that SVI has a stake in its Impression City and Impression Melaka projects.

By Lee Weng Khuen sunbiz@thesundaily.com

Related Links

Monetary enforcement authorities raid MBI International’s Penang office (Updated)
Mcoin, proponents added to Bank Negara’s alert list

 

 

Related posts:

Easier option: Poor experience with
regulated investment product providers may be the reason for investors
to go for ‘alternative’ Po…
A collection of bitcoin
tokens.   Bloomberg—Bloomberg via Getty Images Digital
currencies rally, but caut…
Advertisements

Money game scourge


Easier option: Poor experience with regulated investment product providers may be the reason for investors to go for ‘alternative’

Poor wealth management experiences fuel money games

OVER the past 2 months, it was virtually impossible to pick up any newspaper and not read reports about the money game phenomenon that has taken the media by storm.

It is as if the Pandora’s Box had been suddenly flung open by the exposé of JJPTR, leading to other similar schemes coming to light.

The victim profile ranges from white-collared professionals and savvy businessmen to senior citizens and housewives. It would appear as if just about anyone from different walks of life could be susceptible to these money schemes.

It is easy for observers and bystanders to pin the blame on the investors for getting themselves in a sticky situation. After all, if we apply the caveat emptor (buyer beware) principle to other types of goods and services, the investors should have clearly known the risks of subscribing to these money games and therefore should have been aware of the possibility of losing their investments.

So, what caused groups of people to lose their common sense when it comes to money games?

Scams come in many shapes, sizes and forms but look closely and you will see that they all have many things in common in terms of the modus operandi and the people they seem to attract. From JJPTR and MBI International right at our doorstep to China’s Nanning investment scheme and the most notorious Ponzi scheme of all times – the Madoff scandal, all these scams preyed on innate human weaknesses and appealed to investors’ desire to grow their wealth.

Many would be quick to label these investors as greedy or gullible, but I beg to differ. I see nothing wrong with wanting to achieve financial freedom and get higher investment returns. The people who invested and lost in these scams are not multi-millionaires with ample financial resources. They are average Malaysians who have worked hard and saved their money for a rainy day, only to see their nest egg disappear into thin air. What drove them to place the precious results of their blood, sweat and tears into unregulated investment schemes?

I am convinced that the reason stems from the investors’ poor experience with regulated investment product providers.

The so-called ‘push’ factor

There is a mismatch of what consumers need and what financial institutions are trying to sell. Consumers want guidance on how to use regulated investments as a means to grow their wealth with high certainty and achieve financial freedom.

The general public sees banks as an easy, accessible channel to obtain advice on personal finance and investment matters via wealth management services. There is no issue with legitimacy as the array of financial products and services available through banks are duly approved by the regulatory authorities.

The problem arises when investors are not getting what they need, which is advisory support, from their current wealth management providers. More often than not, investors feel overwhelmed by the choices available in the market. Worse still, investors do not know what action to take when their investments lose money. It is not uncommon to find that the wealth management providers are very attentive and proactive in recommending options; but once the sales is concluded, the investor is basically left to his or her own devices.

As a result of the lack of hand-holding or after-sales service, some investors may find that rather than growing money, they end up losing 20%-30% of their capital. The sheer irony of it is that because of the experience of losing money, they now perceive regulated investments as highly volatile and uncertain, and ultimately lose faith. I have personally encountered clients who harbour such misgivings about unit trusts, that they would bluntly tell me right from the initial meeting, not to propose such options to them.

I realised then the extent to which poor experiences with wealth management providers can lead to misplaced biases against certain investment vehicles even though investors could benefit from the right ones. When disillusioned investors turn their heads elsewhere, this is when they discover “alternative” investment options. And many end up falling for money games because they are sold on the idea of fixed return investments perceived to be low risk, coupled with the promise of better returns.

In this instance, the “push” factor, i.e. the unmet financial needs of consumers, which contributed to investors subscribing to shady schemes, has equal bearing to the “pull” factor (attraction) of these money scams.

“I am like any other man. All I do is supply a demand.” – Al Capone, American mobster

As with most goods and services that are detrimental to our well-being (e.g. junk food, cigarettes, gambling, etc), it is consumers’ demand for them that drives their industry and makes them thrive. Without customers, these shady businesses would naturally die off.

The ability of the money games to proliferate boils down to the “smart” business acumen of the operators to “fill the gap” so to speak. By offering an alternative investment scheme at a time when the market is slow and when many investors are experiencing losses, these money games are seen as a sudden golden ticket towards becoming rich. However, as we have seen, the golden ticket eventually loses its shine and the investors are left holding nothing but a worthless scrap of paper.

Therefore, there would be fewer victims of money games if the wealth management industry as a whole were to step up and reinvent themselves into a genuine one-stop financial centre to help their clients address all financial and investment issues at various points of their lives.

When the grass on one side is always greener, the rest will not matter

In order to ensure that they are seen by clients as the “go-to” person for all financial and investment related concerns, wealth management providers will need to exceed expectations and to a certain degree, over-deliver on their current role.

Wealth managers could assist clients to evaluate various investment proposals to determine its suitability and guide clients to use regulated investment vehicles to invest in various asset classes such as equities, bonds, REITs and foreign investments to grow their money effectively. They could also play the role of a financial bodyguard to help investors fend off scams and illegitimate investments.

In an ideal world, wealth managers will set aside sufficient time and effort to understand the client’s financial position in a holistic manner. They will prepare a tailored and dynamic plan with milestones and checkpoints to help monitor and review progress.

To my peers in the wealth management industry, I would say, cut the lip service and let’s get serious about managing and growing wealth for our clients.

When more and more investors realise that they are able to count on their wealth management providers for all the required support they need to achieve their financial end game, then money games will no longer have room to take root.

Money & You Yap Ming Hui

Yap Ming Hui (ymh@whitman.com.my) is a bestselling author, TV personality, columnist, coach and host of Yap’s Money Live Show online. He feels that the financial world is getting too complicated for everyone, and initiated a weekly online show to address the issues.For more information, please visit his website at www.whitman.com.my
Related Links

Tug of war between retirement and education

Can your unit trust portfolio survive the Trump phenomenon?

Losing the investment game – who’s to blame?

The one resolution you need in 2017

Property investing: The moment of truth is now
Related posts:

 
Malaysian authorities crack down on virtual money operator, MBI Group International

https://youtu.be/zzn4zLtw_p8 Smooth operation: Domestic Trade, Co-operatives and Consumerism Ministry enforcement director Datuk Moh…

‘Future richest man’ nabbed: greed not paying for Zhang

With the inclusion of the two investment schemes run by a company with international investors, there are now 302 firms in Bank
Negara’s…
A collection of bitcoin tokens.   Bloomberg—Bloomberg via Getty Images Digital currencies rally, but caut…

JJPTR boss and aides freed and rearrested to be handed to Penang cops  – The Star Online   Remand on founder and aides extended by…
Scheme or scam?: Multi-level marketing companies often conduct presentations to potential members promising financial freedom and a
b…
What is a BitCoin? Explained – Tech Tip Irrational exuberance is
alive and well. A textbook bubble in Bitcoin prices is developing…

Earn your money the right way: no quick buck, get paid only for honest, hard work



Get-rich quick schemes drawing the interest of those who want to make a quick buck but really, there is no substitute in getting paid for honest, hard work

AS a Penangite, I am always asked by my colleagues and friends in the Klang Valley why is it that most get-rich-quick schemes are located in the island state and the investors mostly its citizens.

I have asked that same question myself, since I’ve heard enough stories of relatives and friends who have been entangled in this web of financial crookery.

It’s not something new. It used to be called the pyramid scheme and Ponzi but, like most, it is just another scam. The new term is ‘money game’ and it’s probably called this to warn new participants that there will be winners and losers, like in any other game.

However, no one is listening because most people are merely interested in the quick returns from their investments.

There are some reasons why Penang lang (Hokkein for people) have warmed up to these quick-rich con jobs.

Penang is a predominantly Chinese state and rightly or wrongly, the appetite for risk there is higher. Some may dismiss risk as a euphemism for gambling, but the bottom line is, many of its denizens are prepared to roll the dice.

Given that there are so few police reports lodged against operators, despite the huge number of investors, indicates the readiness of these players to try their luck.

They clearly are aware of the element of risk involved when they lay their money down, but the huge returns override any rational thinking. No risk, no gain, they probably tell themselves.

Making police reports against operators also runs the risk of “investors” getting their money stuck if the accounts of the scammers are frozen.

Risk-taking is nothing new to many Penangites. This is a state with a horse-racing course and plenty of gaming outlets. Is it any surprise then that a spat is currently playing out between politicians over allegations that illegal gaming outlets are thriving there?

One politician believes the state government does not have the authority to issue gambling licences and “to single out Penang also ignores the fact that gambling is under the Federal Government’s jurisdiction. We don’t issue such licences.”

It’s bizarre because no one issues permits to illegal gaming outlets. That’s why they are called illegal.

But there are some fundamental sociological explanations to this fixation on earning extra money in the northern state.

The cost of living has gone up there … and everywhere, too. For the urban middle class, it is a monthly struggle managing the wages – after the deductions – settling the housing and car loans, and accounting for household items such as food, petrol, utility and tuition for the children.

The cost of living in Penang may be lower than that in the Klang Valley, but it is not cheap either. Any local will tell you that the portion of char koay teow has shrunk, although the price remains the same.

But unlike the Klang Valley, where career development and opportunities are greater, the same cannot be said of the island state.

Many of us who were born and brought up in Penang, moved to Kuala Lumpur because we were aware of the shortage of employment opportunities there.

We readily sacrificed so much, moving away from our parents and friends, relinquishing the relaxed way of life and the good food for a “harder” life in the Klang Valley. We paid the price for wanting a better life.

Job advancement means better salaries, but in Penang, where employers have a smaller base, they are unable to match the kind of pay packages offered in KL.

So, an extra few hundred ringgit from such investments does make a lot of difference to the average wage earner.

It is not unusual for many in the federal capital to take a second job to ensure they can balance their finances.

I don’t think many Penangites expect to be millionaires, at least not that quickly, although JJPTR has become a household acronym since hitting the market in the last two years. As most Malaysians by now know, it stands for JJ Poor-to-Rich, the name resonating well with middle class families.

Its founder, Johnson Lee, with his squeaky clean, boyish looks, assured over 400,000 people of his 20% monthly pay-outs and even more incredibly, convinced many that billions of ringgit vanished due to a hacking job.

Then came Richway Global Venture, Change Your Life (CYL) and BTC I-system, among others. And almost like clockwork, Penang has now earned the dubious reputation of being the base for get-rich-quick schemes.

Having written this article while in Penang, I found out this issue continues to be the hottest topic in town, despite the recent crackdowns by the authorities.

My colleague Tan Sin Chow recently reported in the northern edition of The Star that “money games are on the minds of many Penangites.”

On chat groups with friends and former schoolmates, it has certainly remained very much alive.

Tan wrote: “Another friend, Robert, had a jolt when, a doctor he knew, told patients to put their money into such a scheme. A doctor!

“From the cleaners at his office to the hawkers and professionals he met, everyone, it seems, was convinced. None questioned how the high returns could come to fruition in such a short time.”

We can be sure that these get-rich-quick scheme operators will lie low for a while, but the racket will surface again, in a different form and under a different name.

There is no substitute for honest, hard work. Money doesn’t fall from the sky, after all.

BY Wong Chun Wai The Star

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group’s managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

Related posts:


Scheme or scam?: Multi-level marketing companies often conduct presentations to potential members promising financial freedom and a
b…



 
‘Future richest man’ nabbed: greed not paying for Zhang

  Facing action: Zhang being taken into custody by police after arriving in China. Zhang arrested in Indonesia and escorted back



Money games over for JJPTR! Operator closes shop, founder Johson Lee arrested, demanded!

JJPTR boss and aides freed and rearrested to be handed to Penang cops  – The Star Online   Remand on founder and aides extended by…

 

With the inclusion of the two investment schemes run by a company with international investors, there are now 302 firms in Bank Negara’s…



What concerns Malaysians most ?

Supermarket shopping food THE biggest concern among Malaysians, as
we head towards the general election, is the cost of living. It’s a…



Penang Chief Minister may have too much on his plate, be fair when sharing power

One man, many posts: Ooi showing the long list of various state departments and agencies chaired by Lim, apart from being chief
minister,…


Chinese car-maker Geely to make Malaysia its global hub, help Proton drive into future
PUTRAJAYA: The entry of a major Chinese carmaker into Proton Holdings Bhd will not only ease its financial woes, but also bring fresh

Modern finance and money being managed like a Ponzi scheme ! Economic Collapse soon?

On Mcoin, Bitcoin and points of investment


MCOIN is still very much a talking point, especially in Penang. To the uninitiated, it is the “digital currency” of MBI International, a company involved in a myriad of activities and hogging the limelight for the wrong reasons after being flagged as one of the entities not recognised by Bank Negara.

Since Bank Negara’s warning two weeks ago, the company’s accounts amounting to some RM177mil have been frozen. The cash in question is significantly much more than the previous major scheme that came under probe by Bank Negara and other agencies.

In 2012, the authorities froze RM99.8mil in bank accounts of Genneva Malaysia Sdn Bhd. Also, 126kg of gold were carted away from the office. It has been five years and the investors, most of them ordinary wage earners looking to earn an extra buck from their savings, have yet to receive their money.

One of the reasons is likely that the liabilities of Genneva Malaysia are 10 times more than the assets recovered.

MBI International, which is primarily based in Penang, has a network stretching up to China. According to reports, it has come under pressure from some investors wanting a return of their money.

However, outlets in M Mall in Penang are still accepting Mcoin for the purchase of goods and services. There is no rush to cash out, as one would have expected, considering that the accounts of MBI International have been frozen.

Nonetheless, it is only a matter of time before the value of Mcoin and the ability of MBI International to return money to its investors is put to the test.

Based on previous events that led to companies having their bank accounts seized by the central bank, it would be a long time before the investors are able to retrieve their cash.

There are some who are completely ignorant of the new global order of currencies and money, making comparisons between Mcoin and the rise of cryptocurrencies such as Bitcoin.

If anybody is harbouring any hope that the value of Mcoin would rise just like the phenomenal bull run seen in the world of cryptocurrency, they had better stop dreaming.

There are fundamental differences between instruments such as Mcoin, which in essence is a token to redeem goods at a few outlets, compared to cryptocurrency that is fast gaining traction as an alternative currency around the world.

Mcoin has unlimited supply and its value is controlled by one entity. How the value is derived is not clear.

In contrast, cryptocurrencies such as Bitcoin have a limited supply. And the supply is decentralised – meaning no one entity controls the supply. There is a ledger that tracks all transactions and measures the amount of supply and how much more is available.

The objective of the people behind cryptocurrency is to come up with a currency that is not controlled by central banks. New supply can only come about after hours of a process called `mining’.

The mining process is a complicated one. It involves many hours of programming and utilising high computing skills to predict the next chain in the block of coins. The data used is based on historical transactions and it is said that one block is created every 10 minutes.

Only one successful miner is rewarded with a slice of the cryptocurrency at any one time. He or she can then transact it in an exchange.

The first cryptocurrency is Bitcoin, which began operating in January 2009.

Bitcoin is only one of the hundreds of cryptocurrencies in existence. There are many more new coins coming up, improving on the technology pioneered by Satoshi Nakamoto.

Nobody knows who is Satoshi or if he really exists. However, the legend is that he wanted a currency that is not under the control of central banks, hence the birth of Bitcoin, the first decentralised currency.

The market capitalisation of all cryptocurrency was US$27bil as of April this year – four times more than what the value was in January this year.

Much of the rise is attributed to the volatile US dollar. A few years ago, if anybody had said that cryptocurrency such as Bitcoin would be used to hedge against the US dollar, many would have laughed it off.

Today, however, it is the reality.

The cryptocurrency fever has picked up in China, which has the largest number of “miners” in the world. One reason is said to be because some see it as one way to take capital out of the country.

In India, when the government decided to demonetise the popular 1,000 and 500 rupee notes, there was a 50% increase in the trading of Bitcoin, as people saw it as one way to legalise their black money.

Bitcoin soared past the US$2,500 mark last week, which is a four-fold increase since January this year. There are many other cryptocurrencies, such as Ethereum, that are all seeing a bull run.

The world of cryptocurrency has taken a life of its own. Computer geeks with “blockchain” expertise, the technology that drives the decentralisation settlements of cryptocurrency, are commanding more than US$250,000 per annum.

It is said to be more than what a consultant or a software engineer can earn.

Those who have put their money into cryptocurrency would be laughing all the way to the bank now. But dynamics and fundamentals are complicated. The strength of the cryptocurrency is not based on historical numbers. It does not have an asset backing it.

It is based on future expectations of what the designer of the cryptocurrency offers. It is a complicated investment not meant for the unsophisticated investor.

Only fools will go for investment schemes that are unregulated and offer promises of returns that are unsustainable. They will lose all the time.

The smart investor will rely on traditional stocks and shares with earnings that are visible. Those who are not greedy will surely gain.

The super-smart geeks are banking on the world of cryptocurrency that has a volatile history. Their fate is uncertain.

Source: The Star by M. Shanmugam

Related posts:

 Facing action: Zhang being taken into custody by police after arriving in China. Zhang arrested in Indonesia and escorted back
A collection of bitcoin tokens.   Bloomberg—Bloomberg via Getty Images Digital currencies rally, but caut

What is a BitCoin? Explained – Tech Tip Irrational exuberance is alive and well. A textbook bubble in Bitcoin prices is developing…




Bitcoin, digital currencies rally, caution prevails; virtual currency in property
A collection of bitcoin tokens.   Bloomberg—Bloomberg  via Getty Images Digital currencies rally, but caut…

 

With the inclusion of the two investment schemes run by a company with international investors, there are now 302 firms in Bank
Negara’s…



Money games over for JJPTR! Operator closes shop, founder Johson Lee arrested, demanded!

JJPTR boss and aides freed and rearrested to be handed to Penang cops  – The Star Online   Remand on founder and aides extended by…



Money games, Earn money nothing can replace the old-fashioned hard-work, honesty; learn Jack Ma’s way

Scheme or scam?: Multi-level marketing companies often conduct presentations to potential members promising financial freedom and a
b…

https://rightways.files.wordpress.com/2017/06/0e79c-bitcoin.jpgBitcoin creator mystery, who is the Face Behind the Bitcoin? 

Who created Bitcoin? How? Why? The long search may not be over 

 Bitcoin: cryptocurrency rising, money talks, mining boom sputters

‘Future richest man’ nabbed: greed not paying for Zhang


<
//players.brightcove.net/4405352761001/default_default/index.html?videoId=5461440888001

Facing action: Zhang being taken into custody by police after arriving in China.

 

Zhang arrested in Indonesia and escorted back to China

PETALING JAYA: Self-proclaimed “future richest man in the world” Zhang Jian was arrested in Indonesia and escorted back to China where he will face legal action.

Zhang, whose real name is Song Miqiu, is believed to be the mastermind behind several get-rich-quick schemes in China, Malaysia, Thailand and Indonesia.

The http://www.ysmwxb.com website of Wu Xin Bi – Zhang’s latest “coin” venture – is now inaccessible and over 5,000 Malaysians with RM17.5mil invested are now left in the lurch, reported Oriental Daily.

Sin Chew Daily reported that according to mainland Chinese media, Chinese police tracked Zhang down with help from their Indonesian counterparts and the Chinese Embassy in the country.

He was brought back to China yesterday.

Chinese police investigations revealed that Zhang had set up a trading company called Yun Shu Mao with other partners in November 2012 as a front for illegal multi-level marketing schemes, involving up to 600mil yuan (RM376.63mil).

Police in China’s Hunan province began investigating Zhang and his partners in December 2013, reported Sin Chew.

Zhang immediately fled the country but continued his illegal activities in South-East Asia.

He made headlines in the Malaysian media in 2014 when billboards of him appeared in Penang, proclaiming him to be the “future richest man in the world”.

He also awarded his lucky “distributors” with luxury cars.

The country’s Domestic Trade, Cooperatives and Consumerism Ministry then launched an investigation into Zhang’s company but he fled to Thailand.

On Oct 27, 2014, Thai police arrested Zhang, his wife Yoyo Wang Wen Fang, 29, and his right-hand man Geng Lian Bao over a pyramid scheme and seized assets worth 240mil baht (RM30mil).

After Zhang’s release in 2016, some supporters claimed that he remained in Thailand but his actual whereabouts then were a mystery.

Chinese police sent their officials to track him down several times and even issued an Interpol red alert on Zhang in March 2016.

They also sought cooperation from police in Thailand, Malaysia and Indonesia to investigate Zhang’s activities.

Recently, Zhang was seen making a comeback in Malaysia to promote Wu Xin Bi, a coin which he claimed had investment value on the Internet. – The Star

End of the road: Zhang being taken away by the police in China >>


 

Greed not paying for Zhang

The ‘future richest man in the world’ – the alleged mastermind behind several get-rich-quick schemes in the region – is set to face legal action in China.

ZHANG Jian, founder of money game scheme YSLM and the self proclaimed “future richest man in the world”, was arrested in Indonesia, finally.

Zhang has enjoyed a demigod status among his followers ever since he first started the business. He was uplifted as an ultra-smart man who went to the university at the age of nine and decoded bank passwords at 12. He was also said to be well versed in six languages.

But the question is whether he is no better than a master con man.

Zhang is well known in Malaysia, and the YSLM that made a landfall in this country three years ago almost turned the country upside down.

In the pretext of charity, he and his team made generous donations to local Chinese primary schools and independent high schools to win the hearts of the public and for their own publicity. He once offered RM350,000 to a single Chinese primary school in Negri Sembilan.

Zhang and his team recently brought a virtual currency called wuxingbi into Malaysia, and in the name of Zhang Jian Jewelry, continued with its donating spree that subsequently triggered the controversial question whether his donation should be accepted by independent Chinese high schools in the country.

After his release from a Phuket prison, Zhang went on with his usual tactic of bribing government officials and counterfeiting identification documents to move around South-East Asia. That nevertheless would not stop him from running his money game business by manipulating the wuxingbi scam through WeChat, smartphone and the Internet while staying largely out of the public eye.

His YSLM has sucked up 600mil yuan (RM380mil) of public funds in China, while his wuxingbi is actually another virtual coin scheme operating on a people-get-people model.

He knew how to command public attention, spending 30,000 yuan (RM18,834) each on young women to get them to shave their heads and act like nuns to promote wuxingbi at various functions and events. He even organised a “nun wedding party” in China.

He promised anyone purchasing a 5,000 yuan (RM3,139) wuxingbi to bag in 4mil yuan (RM2.5mil) of returns within a year. The unimaginable 800-fold returns were way higher than what recently collapsed money game schemes could think of offering their investors. Unfortunately, many have chosen to believe in him, especially in China.

Even as money games has become so rampant in this country, our enforcement authorities appear to be always a few steps behind in their actions.

Extensive coverage in Sin Chew Daily has doubtlessly killed the get-rich dreams of many avid investors. These scammers are never short of cash, and are always ready to hire well-known law firms to send us legal letters in an attempt to gag the media.

With Zhang now escorted back to China to face legal action, perhaps it is time for wuxingbi investors here to wake up. — Sin Chew Daily/Asia News Network

Source: The Star by Pook Ah Lek

Pook Ah Lek is Editorial Director with Sin Chew Daily. The views expressed here are entirely the writer’s own.

Related Links:

CYL signboard went up without permit, so down it comes – Nation …

 

MACC officer held in Penang for extortion – Nation

Related posts:

With the inclusion of the two investment schemes run by a company
with international investors, there are now 302 firms in Bank
Negara’s…
A collection of bitcoin tokens.   Bloomberg—Bloomberg
via Getty Images Digital currencies rally, but caut…

JJPTR boss and aides freed and
rearrested to be handed to Penang cops  – The Star Online   Remand
on founder and aides extended by… 

Scheme or scam?: Multi-level marketing companies often conduct
presentations to potential members promising financial freedom and a
b… 

What is a BitCoin? Explained – Tech Tip Irrational exuberance is
alive and well. A textbook bubble in Bitcoin prices is developing… 

A collection of bitcoin
tokens.   Bloomberg—Bloomberg via Getty Images Digital
currencies rally, but caut

 

Two virtual coin get-rich schemes red-flagged by Malaysian Central Bank


GEORGE TOWN: Two more popular financial schemes in Penang have been red-flagged by Bank Negara Malaysia (BNM).

A check on the financial consumer alert list yesterday showed MBI International Sdn Bhd and Mface International Sdn Bhd to be the latest additions.

Both are subsidiaries of MBI Group International, a company with investors worldwide, many of them from China.

To date, 302 companies have been listed under the BNM financial consumer alert list, for suspicion of not adhering to relevant laws and regulations administered by BNM in their operations.

Under the Financial Services Act 2013, individuals or businesses involved in illegal financial activities can be fined up to RM50mil and jailed for 10 years.

When contacted by a Chinese daily, MBI International chairman Tedy Teow’s special assistant Alfa said he did not think that the company would face any problem.

“And it is unnecessary for us to hold a press conference to explain the situation to our investors.

“We are always doing our work and we believe that our investors can see how we are performing so far,” he told Sin Chew Daily.

An investor, H.L. Teoh, said he put in RM22,500 early this year and was given 10,000 game redemption credits.

“Actually, I can start selling it every six months, but I was advised to wait for it to grow bigger in three years.

“When you have lots of credit, it is like having a lot of virtual shares.

“Now, I will have to wait for further instructions from the company before my next course of action,” he said.

Members are allowed to spend their loyalty points, which are converted from virtual money or coins, in exchange for goods and services at affiliated companies, including a supermarket, restaurants, a gym and even a durian stall.

Meanwhile, a press conference called by a branch representative of another controversial financial scheme operator, JJPTR, was cancelled at the last minute.

Press members in Penang had received an invitation from a man known only as Lim at 8.30am yesterday.

However, no reason was given for the cancellation.

JJPTR has been grabbing headlines in the past few weeks since its founder Johnson Lee claimed that the company had lost US$400mil (RM1.738bil) due to a purported “hacking job”.

Lee and two of his top aides have been detained by the police to facilitate investigations following several police reports lodged against JJPTR.

In another case, 19 Chinese nationals lodged police reports in Kuala Lumpur against another multi-level marketing company, claiming that they had lost hundreds of thousands of ringgit.

They claimed to have lost between 100,000 yuan (RM62,536) and 700,000 yuan (RM437,754) since investing in the scheme by Monspace last year.

Founded in 2014, Monspace is listed as a multi-level marketing company, according to the Com­panies Commission of Malaysia.

In an immediate response, Monspace said it would take legal action against any group or individual making defamatory statements against it.

The company said in a statement to the media that it was functioning professionally and had engaged a law firm to keep track of statements made about it.

Source: The Star/ANN by Crystal Chiam Shiying

Related Link:

Whereabouts of JJPTR founder unknown

Related posts:

A collection of bitcoin tokens.   Bloomberg—Bloomberg via Getty Images Digital currencies rally, but caut…
JJPTR boss and aides freed and rearrested to be handed to Penang cops  – The Star Online   Remand on founder and aides extended by…

Money games over for JJPTR! Operator closes shop, founder Johson Lee arrested, demanded!



//players.brightcove.net/4405352761001/default_default/index.html?videoId=5435632416001

JJPTR money game operator closes shop

 

Zero activity: JJPTR’s Bayan Baru office is all quiet following the arrest of the scheme’s founder.

Police set the record straight on founder’s fanciful claims – Nation

Whereabouts of JJPTR founder unknown

GEORGE TOWN: Offices of money game operator JJPTR have reportedly been closed since last Friday following raids by a task force investigating the scheme. There was no sign of employees or investors at its offices in Perak Road, Bandar Baru Air Itam and Bayan Baru yesterday.

Investors too seem resigned to the fact that they will not be seeing their money after JJPTR founder Johnson Lee and two of his key leaders were remanded in Klang. Facebook pages and social media sites promoting the scheme have also gone silent.

Investor Y.L. Ho, in her 50s, said she knew her fate was sealed when the task force raided eight JJPTR premises in Penang and recorded statements from 15 workers and four investors.

She has yet to recoup her RM4,700 capital, and had lost about RM1,600.

“I was told the founder has been remanded. I don’t think I will ever get back my money,” she said.

Another investor, known only as Goh, believes his investment is as good as gone.

“There is no point going to the office to make further enquiries,” he said.

On Friday, the task force team carted away documents and computers from the main office in Perak Road between noon and 5pm.

Besides JJPTR offices, the team also raided another operator Change Your Life’s (CYL) office at Icon City in Bukit Mertajam.

Businessman S.K. Yeoh, who has invested in a few money games like CYL and Richway Global Venture, said he has lost hope of getting his monthly payouts.

“Following the intervention of the authorities, I think my handsome returns will be up in smoke.

“Luckily I have recouped my capital. If not, it could have been worse,” he said.

A money game player, Ben Chow, 35, said many of his friends knew it was a gamble when they decided to invest in the many get-rich-quick schemes.

“Just look at the number of police reports lodged and you will get some hints. Many of my friends know how these schemes work. They will not go to the police.

“They are always on the lookout for new platforms, knowing they can find easy money if they are among the pioneers. If they lose, they would just curse their luck,” said Chow, who invested in BTC I-system and several other money games.

Meanwhile, Penang police chief Comm Datuk Wira Chuah Ghee Lye said they were waiting for instructions from Bukit Aman before taking the next course of action.

“We won’t jump the gun. We will wait and see the outcome of the investigations on JJPTR.

“There is no reason for us to call up investors to record statements, unless they come to us and make a complaint.

“The Inspector-General of Police has given us three months to investigate the matter.

“Bank Negara is playing an active role in the investigations,” he said after launching a blood donation campaign at Tanjung City Marina yesterday.

Comm Chuah said several businessmen had raised concerns over the prevalence of money game schemes when he first assumed the state police chief post in January.

Source: The Star by  tan sin chow, farik zolkepli, adrian chan, m.kumar, loshana k.shagar


JJPTR’s Johnson Lee arrested

//players.brightcove.net/4405352761001/default_default/index.html?videoId=5435632416001

GEORGE TOWN: Police have picked up JJ Poor To Rich (JJPTR) founder Johnson Lee (pic) and two of his right-hand men in Petaling Jaya at around 4.30 on Tuesday morning.

Police are expected to release a statement on their arrest soon.

Previously, Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Acryl Sani Abdullah Sani said JJPTR have collected investments of up to RM1.7bil up until now.

Comm Acryl said in a statement last week that following investigations on JJPTR, Bukit Aman’s Anti-Money Laundering squad, CCID, Bank Negara, the Companies Commission of Malaysia, Inland Revenue Department, National Revenue Recovery Enforcement Team and Cyber Security raided eight different locations in Penang.

He said that said the eight locations, several offices and residential units, were believed to be used as offices of the syndicate’s operations.

Comm Acryl Sani said following the raid, 15 workers and four investors have been held for documentation process and questioning.

He added that all of them are aged between 23 and 40.

It is learnt that of the 15 workers held 13 are women while three of the four investors are also women.

All of those held are locals.

“Also seized were seven computers and laptops, cash counting machines, hundreds of JJPTR company documents, televisions, CCTV cameras and RM3,300 cash,” he said in the statement.

Comm Acryl Sani said that action to freeze accounts belonging to JJPTR were also being carried out under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Source: The Star by  farik zolkeplitan sin chow

Johnson and two others remanded

KLANG: JJ Poor To Rich (JJPTR) founder Johnson Lee and two of his key lieutenants have been remanded for three days.

The three men were brought by police to the court complex where magistrate Nik Nur Amalina Mat Zaidan granted yesterday the remand order until Thursday.

The men were led away about 20 minutes later.

Lawyer G. Jaya Prem said his clients were being investigated for one case of fraud.

“It is one report, of Section 420 of the Penal Code, on a sum of RM56,400. The funny thing is: this money went to a company which is not even under the name of my clients,” he said.

Lee and his assistants were picked up by police in Petaling Jaya at about 4.30am yesterday.

Previously, Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Acryl Sani Abdullah Sani said JJPTR had collected investments of up to RM1.7bil until now.

He said in a statement last week that following investigations on JJPTR, Bukit Aman’s Anti-Money Laundering squad, CCID, Bank Negara, the Companies Commission of Malaysia, Inland Revenue Department, National Revenue Recovery Enforcement Team and Cyber Security raided eight different locations in Penang.

Comm Acryl Sani said following the raid, 15 workers and four investors were held for documentation process and questioning.

Related stories:

Two police probes on money game scam, says Bukit Aman

Related posts:

Angry investors who lodged a police report at the Pekan Kinrara station. Waiting for answers: His first investment scheme failed with l…
Scheme or scam?: Multi-level marketing companies often conduct presentations to potential members promising financial freedom and a b…



Trap – as long as there is greed, Ponzi schemes will always re-emerge.  CALL them pyramid, Ponzi or get-rich-quick schemes and pe…

MACC launches Gerah, 3J campaign in fight against … – theSundaily Corruption and its debilitating impact – The Bowerbird Writes …

MACC chief deserves support – Letters Anti-corruption wave picks up speed – theSundaily WE HAVE long grumbled that there should b…
%d bloggers like this: