Telling fact from fiction, fake news


Easy target: Fake news is a big problem here because many of us are too impressionable when it comes to news on the Internet.

HARDLY a day passes without someone sharing a video with me. No one bothers to check, not for a minute, if this could be nothing more than a fake video gone viral. Yet, amazingly, they are quick to forward such things to me.

And that doesn’t even include the unsolicited political messages, through which senders expect their receivers to echo their political enthusiasm.

More alarmingly, residents chat groups on uncollected rubbish or poor maintenance, suddenly see political messages popping up in them. Even prayer and old classmates chat groups aren’t spared, my goodness.

Blame it on what is often dubbed “silly season”, leading up to the general election, but don’t test our patience by diverting our attention to something trivial. It is downright irritating and insulting. And who cares about these politicians, anyway? Not everything in life is about politics, after all.

On Friday, a video went viral on what looked like a gun fight between the police and a notorious gang in Kuala Lumpur.

Some truth-seekers took the trouble to check with the media, but most would have despatched it to their friends in no time at all.

As trained journalists, we obviously scrutinised the video to look for give-aways. It doesn’t take a detective to pick out the holes, but then, there are many gullible Malaysians.

For one, the tiny yellow taxis in the video don’t exist in KL. There is no such building with that staircase structure in the capital, either, and there was a camera crew in plain view running around filming the action scenes, clearly indicating a movie set.

Most of the cars in the video aren’t even models we regularly see in Malaysia, and there was also a guy who ran by wearing what appeared to be heavy clothing.

On Thursday night, it got even sillier.Leaping out of the world wide web was a video of what’s been made to look like a Malaysian student being bullied in a classroom.

The comments by some racist airheads really infuriated me. With the victim appearing Chinese, the bully possibly Malay – he looked Indian to me – it became fertile ground to sow the seeds of hate.

At no point did it occur to them that this video could have come from Singapore. It didn’t even cross their minds that Malaysian students no longer wear uniforms entirely in white. The last time students were decked completely in white was probably in 1979 – during my time as a student. And desks and chairs in green? In our schools?

The Education Ministry has come out to confirm that the incident in that widely-shared video happened in Singapore on Feb 9.

Describing the footage as a “severe case of bullying”, Deputy Education Minister Datuk P. Kamalanathan urged netizens to stop spreading the clip.

“This happened at Westwood Secondary School in Singapore. Please don’t spread this video and claim that it happened in Malaysia.

“Before forwarding anything, it would be wise to authenticate its veracity to avoid confusion and misinformation,” he added.

A group of students from Westwood Secondary School were filmed punching, kicking and throwing chairs at a classmate in a video that then went viral, reported Singapore’s The Straits Times on Feb 18.

In the video posted on Facebook page Fabrications About Singapore on Feb 15, a student can be heard egging his friends on to “teach” one of their classmates a lesson.

Two students were captured throwing chairs at a boy seated at his table in a classroom while on his mobile phone. The boy is stunned when a chair hits his head.

A student then slaps the boy, before throwing a series of punches and kicks at him.

Then, the student overturns the boy’s chair, shoves him to the floor and continues to pummel him.

Then, there was the fake sex video, which purportedly featured national badminton hero Datuk Lee Chong Wei as a “movie star”.

I meet my fellow Penangite regularly, and I can safely say that I have observed him up close and personal.

I can tell that Lee is much more muscular than that skinny, presumably, porno actor in the video, and the hairstyle doesn’t even match our sports idol’s.

Lee has done right by making a police report, and let’s hope the police, with the help of the Malaysian Communications and Multimedia Commission, swiftly track down the culprits of this vicious smear campaign.

It’s obvious that some people not only want to discredit the three-time Olympic silver medallist but are looking for maximum mayhem by aligning their dubious act to coincide with the release of his feature length biopic Lee Chong Wei: Rise of the Legend next month.

And that’s far from the end of the tall tales. There’s also this pathetic fake news about rejected Musang King durians from China – timed to perfection to be “reported” right before the International Durian festival in Bentong.

The Internet burned with a doctored picture depicting a mountain of the “rejected” fruits, which were said to have been exposed to extremely high levels of insecticide.

Those who shared that piece of poor journalism – either because they were sincerely concerned, genuinely ignorant or politically motivated – didn’t know, or cared to find out that Malaysia doesn’t export durians in its original fruit form but rather, as frozen pulp in packages.

And for sure, the Chinese wouldn’t have wanted to bear the freight charge to return these bad durians to Malaysia. The life span of our durian is only a day or two. How could it have been stacked up like that in the picture?

Durian lovers who inspected the picture could tell they were not Musang King, but instead, something of Thai origin.

With the general election looming, the recycled rumours of Bangladeshi phantom voters arriving by the planeloads at KLIA2 have resurfaced. Even an opposition state assemblyman, in her Chinese New Year video criticising the #UndiRosak activists, cheekily added that “even the Bangladeshis want to vote.” Can you picture 40,000 of them milling at our airport?

Although not a shred of evidence has come to light to back up the incredulous claim, the myth continues to be perpetuated, and it’s a given it will be rinsed and repeated. Perhaps it’ll be the Nepalese or Rohingya this time?

While the ordinary Malaysian can be forgiven for being easily swayed, it’s an entirely different story when journalists find themselves duped, or God forbid, spreading the “news”.

In the 2013 general election, a prominent TV presenter posted on his Facebook page claiming a blackout occurred at the Bentong counting centre, which led to the Barisan Nasional winning the parliamentary seat, slyly implying the coalition cheated during the result tabulation.

He got his network into hot water when he returned to his FB profile to say, “when my child is born, I will ask him to write an essay with the title ‘The Blackout Night’. The beginning of the essay would be on May 5, 2013, there was a stiff fight in the Bentong seat. Someone had said that he would cut his ears if it is lost, and then the counting process started, blackout …”

To credit MCA president Datuk Seri Liow Tiong Lai’s opponent, DAP challenger Wong Tack denied the rumours. But let’s hope this presenter has since matured, and perhaps, become more cynical as a journalist or presenter, at least.

The most frequent fake news that sparks to life every few weeks would be the dates of the Parliament’s dissolution and polling.

Interestingly, in the case of the polling date “report”, it involved the Prime Minister having an audience with the King, accompanied by the Deputy Prime Minister and Speaker.

It’s all very simple, really – the PM doesn’t need anyone tagging along, and after meeting the King, he surely can’t be fixing a date since that job belongs to the Election Commission.

A news portal reported that fake news is a big problem here because many of us are too impressionable when it comes to news on the Internet.

The Asian Correspondent reported: “Without questioning the veracity of certain claims and announcements, it seems that oftentimes, anything resembling a news story – whether shared on social media or via mobile messaging apps – is swallowed wholesale.

“Let’s look at how WhatsApp has become a popular platform to spread news. How many of you have received forwarded messages that clearly resemble fake news and could have easily been dismissed as such? I’m sure so many have, and speaking from experience, it definitely gets frustrating.

“The worst part is that when you question the person who unwittingly forwarded the news, he or she would say, ‘I don’t know if it’s true or not. I received it from someone else, so, I’m just forwarding.’”

This has happened continually because no one is punished for their unscrupulous and reckless deeds, even if their actions lead to undesirable consequences amounting to racial tension, riots and even death.

And the campaigning hasn’t even begun! So, let’s put on our thinking caps and brace for the inevitable soon – a deluge of fake news.

On the beat Wong Chun Wai

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.
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PAC blamed Penang Island City Council (MBPP) for failing to enforce laws on hillside development


Becoming bald: A view of the clearing work seen at Bukit Relau which was visible from the Penang Bridge in November last year.

GEORGE TOWN: The Penang Public Accounts Committee (PAC) had faulted the Penang Island City Council (MBPP) for failing to monitor and enforce laws on hillside development in the state.

In its report on hill land development tabled on May 19, PAC said the lax monitoring not only resulted in unchecked hill clearing, but landowners were able to build houses, chalets, hotels and restaurants on Penang’s hill range.

“This situation happened because of MBPP’s failure to monitor and patrol hill land after notices were issued to landowners.

“This led to risks of soil erosion, landslides, mudslides, river sedimentation and disruptions to the surroundings,” it stated.

PAC’s report gained public attention after Penanti assemblyman Dr Norlela Ariffin brought it up in a dialogue session held by Penang NGOs and residents associations on flood and landslides on Sunday.

She told 200-odd members of the civil society that the report was tabled in the state assembly but never presented.

PAC stated that according to the state Audit Department, out of 31 illegal hill land clearing cases in 2015, four were in the Teluk Bahang water catchment area.

The committee, chaired by Bagan Dalam assemblyman A. Tanasekharan, visited nine of the cases on March 1.

It highlighted the Bukit Relau hill clearing case 410m above sea level and visible from Penang Bridge.

“Media reports and public comments should have been enough for MBPP and other authorities to take immediate action.

“Mitigation works on Bukit Relau have taken so long to be completed. The local authorities neither monitor the work frequently nor supply regular updates,” it added.

On illegal clearing that took place on Penang Hill, PAC expressed frustration that the actual dates and specific locations of the earthworks could not be determined because of the unsatisfactory records and monitoring.

“On Penang Hill, there was confusion on the existing agricultural plot and the new clearings.

“There are no definitions of allowable hill land agricultural works that involves digging,” it added.

PAC also objected to an earlier suggestion by the state Local Government Committee to exclude hill land earthworks related to agricultural activities from needing work permits.

Source: The Star by Arnold Loh

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Councillors ready to serve Penangites to make a difference?

Malaysian Public varsities, companies, GLC execs also recipients of EBA fake awards


Checks on local news reports show EBA bestowed ‘awards’ not just to Penang councils but also other Malaysian institutions.

GEORGE TOWN: Before the dust could settle on a shock expose that Penang municipal councils received “excellence” awards from a questionable outfit exposed by a UK newspaper, checks show that other Malaysian companies, universities and GLC execs were also recipients.

Checks by FMT show Malaysian companies, public universities and top executives of Malaysian government-linked companies had won awards from the dubious Europe Business Assembly (EBA) before.

UK’s The Times had alleged that EBA, run by Ukrainian businessmen, made use of the renowned Oxford University’s name and reputation to hand out awards to those who paid a sum.

According to EBA’s website, this year, seven Malaysian companies and their bosses were listed as award recipients.

Among them is a public-listed utilities company and an education provider.

Based on Malaysian news reports, past winners of EBA’s awards include three Malaysian public universities — namely Universiti Sains Islam Malaysia (USIM), Universiti Teknikal Malaysia (UTeM) and Universiti Malaysia Perlis (UniMAP).

USIM, UTeM and UniMAP received the “Best Regional University” award from EBA in 2013, according to a report by Utusan Malaysia on Dec 25, 2013.

Their vice-chancellors were reported in local Malaysian dailies to have won “Best Manager of The Year” in the same year as well.

One of the vice-chancellors was reported to have won “Best Scientist” separately from EBA’s “Oxford Summit of Leaders Science & Education”.

Another VC was reported to have won “The Name in Science” award, too.

EBA’s ‘International Socrates Award’

According to EBA’s website, the group is “an international corporation of social partnership” established in Oxford, UK, in 2000.

It lists developing and promoting social and economic links between companies, investors, education establishments, cities and countries worldwide as its main objectives.

The Times had reported that EBA advertises itself as an Oxford institution to sell “made-up prizes” such as “The International Socrates Award” and “The Queen Victoria Commemorative Award” for a price of up to £9,300 (RM52,000).

The report claimed the EBA outfit was run by Ukrainian businessmen, targeting areas where people had the financial power to buy such accolades.

A former employee told The Times that the outfit was told to focus on customers from the Middle East, eastern Europe and Russia “where the idea that money buys you credentials is still there”.

EBA was also revealed to have used images of Oxford colleges and even the same typefaces in its publicity materials.

It also claimed “exclusive” access to special lectures from Oxford, the report said.

However, the University of Oxford told the daily it has no relations with EBA.

“On the face of it, the guests gathered that evening did not have much to unite them.

Representatives from a Nigerian maritime security company rubbed shoulders with the vice-president of a Bulgarian mine.

“The founder of an international school in Malaysia mixed with the director of an Indian private medical institute,” The Times report read, in explaining the holding of an elaborate awards presentation ceremony.

Source: Free Malaysia Today (FMT)

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Fake Awards Scam for Penang Island City Council, Seberang Perai Municipal Council !


Dubious honours: (Above) Former Penang Island City Council mayor Patahiyah Ismail with the trophy and certificate for Best Municipal Manager awards in 2013 while her Seberang Prai counterpart Maimunah (pictured here with the Chief Minister Lim Guan Eng and his aide Wong Hon Wai) received the same latter award in 2014

Penang local councils ‘fell for vanity awards scam’

GEORGE TOWN: Two European NGOs have exposed the European Business Assembly (EBA) which piled honours on Penang’s local councils as a vanity awards scam.

It is on a list of 10 organisations in Europe and China that hold elaborate ceremonies and create beautiful trophies to go with hundreds of awards.

“In many cases, those awards are bogus, sold by unscrupulous organisations that prey on hu­­man vanity,” the Center for Investigative Reporting of Serbia (CINS) and the Organised Crime and Corruption Reporting Project (OCCRP) researchers wrote in a 2014 report.

The report states that such organisations sent solicitation letters to companies and government agencies in the world, telling them that they had been nominated for various awards.

“Anyone who replies, shows interest and agrees to pay gets an award. Most of the letters contain the ceremony programme generally held in an attractive European capital, pictures of the trophies and information about costs,” the report added.

CINS was founded in 2007 by the Independent Journalists’ As­­so­­ciation of Serbia to support investigative journalism.

OCCRP comprises investigative reporters throughout Europe, Africa, Asia and Latin America.

The two local councils in Penang were left red-faced for getting EBA awards in 2013 and 2014.

The now retired Penang Island City Council (MBPP) mayor Datuk Patahiyah Ismail was awarded the Best Municipal Manager while the council was given the Best Municipality Award in 2013.

A year later, Seberang Prai Municipal Council got the Best City award while its then president Datuk Maimunah Mohd Sharif won the Best Municipal Manager award.

On Monday, it was reported that EBA was generating millions of pounds by selling fake Uni­ver­­sity of Oxford awards and cer­ti­ficates.

Pulau Betong assemblyman Da­­tuk Muhammad Farid Saad said he found many articles on­­line exposing EBA as a vanity awards organisation.

“Did they spend ratepayers’ money to get those honours? It’s like buying fake academic degrees,” he said in a statement.

Penang MCA secretary Tang Heap Seng said the state government should explain to the people whether it had purchased the awards to enhance its reputation.

In a statement, MBPP said it regretted that the awards were suspected of being false and had applied to the organiser to reaffirm the recognitions.

State Local Government Com­­mit­­tee chairman Chow Kon Yeow said he hoped both councils would be more discerning and careful in future.

Source: The Star/ANN by Tan Sin Chow

Councils: We won EBA awards after paying entry fees

Mayor: I apologise if accolade not genuine

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GEORGE TOWN: Two councils in Penang have admitted that they won the awards given by the Europe Business Assembly (EBA) without any assessment after paying a total of 7,800 euros (RM39,088) in entry fees.

Penang Island City Council (MBPP) mayor Datuk Maimunah Mohd Sharif said EBA did not send any auditor or judge to review the performances of the then Penang Municipal Council (MPPP) and Seberang Prai Municipal Council (MPSP).

“We received letters via email from EBA that we were nominated for the awards. We then corresponded on the matter.

“EBA stated their judging criteria in the letters which they would be basing their assessment on.

“As far as I know, they did not come and talk to us but assessed us (themselves),” Maimunah told reporters yesterday, adding that the MPPP and MPSP had paid £4,400 (RM20,680) and £3,400 (RM18,408.10) for the entry fees.

Maimunah, who just returned from a conference in Manila, was commenting on the EBA controversy which was reported as a vanity awards scam.

It was reported that in 2014, the Centre for Investigative Reporting of Serbia and the Organised Crime and Corruption Reporting Project researchers had exposed the EBA for giving out the awards.

“If it is true that the award is not genuine, then I apologise. I wish to stress that the local councils do not have any intention to spend taxpayers’ money to buy any award or recognition from any group,” said Maimunah.

She said at that time, both MPPP and MPSP had considered the awards as a prestigious recognition based on the assessment criteria, which included economic environment, educational infrastructure, public services and transport, recreation and entertainment.

“The entry fee is a package inclusive of the participation cost for the conference. Both of us (Patahiyah and herself) went alone and we flew economy class although we were both entitled to business class.

“We did check on the awards but we did not receive any information which would have raised suspicions.

“There are other Malaysian local authorities, agencies, universities and individuals who have received the EBA awards before us.

“As such, the councils were of the opinion that the awards ceremony were worth joining,” she said.

Both councils, she said, were still waiting for a reply from EBA to clarify the matter.

Source: The Star by Chong Kah Yuan

MPSP to participate in awards despite ‘vanity awards’ controversy

BUKIT MERTAJAM: The Seberang Perai Municipal Council (MPSP) will continue to participate in international awards despite the controversy on so-called ‘vanity awards’ received by the council from the Europe Business Assembly (EBA).

The council’s newly appointed president Datuk Rozali Mohamud said they would continue to take part in international awards, but would heed the advice of state Local Government, Traffic Management and Flood Mitigation exco Chow Kon Yeow to be more cautious.

“Up to this moment, we have decided to take part in the Wego (World e-Governments Organisation of Cities and Local Governments).

“The awards are held annually, and it is free. We do not have to pay any entry fee,” he told reporters at a press conference.

On July 24, it was reported that the EBA was generating millions of pounds by selling fake University of Oxford awards and certificates.

Researchers from two NGOs wrote in a 2014 report that such organisations sent solicitation letters to companies and government agencies in the world, telling them that they had been nominated for various awards.

“Anyone who replies, shows interest and agrees to pay gets an award,” the report stated.

The now retired Penang Island City Council (MBPP) mayor Datuk Patahiyah Ismail was awarded the Best Municipal Manager award while the council was given the Best Municipality Award in 2013.

A year later, MPSP got the Best City award while its then president Datuk Maimunah Mohd Sharif won the Best Municipal Manager award. Maimunah is now MBPP mayor.

 

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Angry & frustrated investors lodged report, tell off staffs trying to buy time!


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

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http://www.thestar.com.my/news/nation/2017/05/03/jjptr-offers-better-plan-founder-promises-higher-returns-but-stays-mum-on-refunds/

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

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Get-rich-quick schemes thriving in Penang: many losers in the money game!


CALL them pyramid, Ponzi or get-rich-quick schemes and people might shy away. But call them money games, and suddenly they are just games, is that right?

What can be so diabolical about that?

Penang lang (people) are very much into money games. That’s what Ben, a Penangite who now lives in Australia, found out when he came back for a holiday three weeks ago.

Ben’s friends and relatives tried to rope him into money games. They themselves had “invested” in a few “games”.

He was astounded by their obsession. It does seem as if money games are on the minds of many Penangites now.

I hear about them at the coffee shops and watering holes. And yes, many of my buddies are into them too.

You will likely be the odd one out if you are not into such schemes these days.

JJPTR is a now household acronym after almost two years in the market. It stands for JJ Poor-to-Rich and the very name resonated well with middle-class families.

Its 20% monthly payouts were always on time, until the recent hacking job.

Then came Richway Global Venture, Change Your Life (CYL) and BTC I-system, but they too are said to be in troubled waters these days.

Attempts by many journalists to contact them have been unsuccessful.

The money game list is quite long, and Penang has the dubious honour of being the home base for many.

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.

But Robert is a harsh critic of these games and would not go anywhere near them. He didn’t believe in their economic “principles”.

He even got into a big fight with his father, who put money into JJPTR.

And now, Robert has been proven right. Fortunately, his father was one of the lucky ones because he managed to recoup his principal sum, on top of the thousands more he had received over the past few months.

Billy, a man well-versed in such operations, said operators would always use forex trading or investment in foreign projects as cover stories to woo new members.

They paint vivid pictures of those joining becoming part of big-time developments in Third World countries like Cambodia and Vietnam.

Once you get closer to them, they will tell you outright it is a money game and that you are among the pioneers, sure to make a profit before the scheme bursts.

Things tend to be smooth sailing for the first few months. You see money coming back in and pride yourself in taking the risk.

But soon the saturation point is reached as new members to the pyramid slow to a trickle.

Then you can expect the scheme to collapse.

Billy pointed out that the higher the return on investment, the faster the scheme bursts.

That’s because the operator cannot get enough new members to keep the scheme sustainable. At the same time, he has to deal with huge monthly payouts.

Some in Penang may remember the chance to invest in a cafe chain known as Island Red Cafe around 10 years ago. Then there was that company that sold gold bars and coins. There was also a Swiss cash scheme which took the country by storm.

As long as there is greed, such schemes will always re-emerge. As they say, a fool and his money are soon parted.

Honestly, the quickest way to double your money is to fold it in half and put it back in your pocket.

Please bless the money game

Still very much alive: Investors of Mama Captain are allowed to continue trading their virtual money at any outlet displaying the ‘Barrel2U’ banner.

GEORGE TOWN: Some investors are seeking “divine intervention” for money games to last.

A 10-second video clip of a man praying aloud before a temple shrine is fast circula­ting on social media and phone chat groups.

His prayer goes: “Datuk Gong (deity), I pray to you. Please bless money games. Please help them stay afloat for a few more months.”

His prayer is in Penang Hokkien and he mentions “money game” in English.

It is believed to be a satirical meme on money games, and there are several more spreading.

Memes on the Penang-based JJPTR, or Jie Jiu Pu Tong Ren in Mandarin (salvation for the common people), have also gone viral online.

One of them, titled “Life without JJ” in Chinese, is accompanied by a picture of a plate of plain rice topped with a few strands of fried vegetable.

Another similarly titled meme shows grubby, tattered underwear and is captioned: “Don’t ask me how my life is lately. The underwear explains everything!”

Meanwhile, a man known as Bingyen has cynically adapted the lyrics of a popular Mandarin song Zui Jin Bi Jiao Fan (Troubled Recently) to relate to JJPTR.

Interestingly, the Chinese name of JJPTR founder Johnson Lee rhymes with one of the song’s singers, veteran Taiwanese musician Jonathan Lee. Both their names are similar in pinyin – Li Zong Sheng.

Bingyen, in his lyrics, also advised the people to stay away from money games.

According to speculation online and media reports, JJPTR investors, said to number in the tens of thousands locally and internationally, including Canada, the United States and China, stand to lose RM500mil.

Lee, who has blamed the company’s losses on hackers, however, put the figure at US$400mil (RM1.75bil) in a widely-circulated video recording later.

The 28-year-old founder, in a video posted on the JJPTR Malaysia Facebook page last week, made a promise to repay its members by May 20. Also on the same day, the company is supposed to hold a dinner gathering at Berjaya Times Square in Kuala Lumpur.

The forex trading company, along with its associate entities JJ Poor to Rich and JJ Global Network under http://www.jjptr.com, is among the 288 entities and individuals listed on Bank Negara’s Financial Con­sumer Alert as of Feb 24.

Source: Pinang points by Tan Sin Chow

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

There is no fast track to getting profits or income. Nothing can replace hard and honest work.

IT’s now called the money game but it has been around for awhile, only that it was referred to as multi-level marketing (MLM) or pyramid scams.

There seems to be a resurgence of such scams recently probably due to the economic slow down. While it may be safer to put one’s money in the bank, the reality is that the interest is not that great. It’s the same with unit trust investments.

So, there’s little surprise that many people are attracted to MLM scams, with its huge returns, although they know there’s always a risk behind these schemes (or scams).

These people are seemingly prepared to take the plunge.

New recruits are told to just deposit RM5,000 and stand to gain RM1,000 every month. That’s so attractive – and that is also how one gets sucked into the game.

Imagine this – if there are over 20,000 members and each of them places RM5,000 in the scheme, that works out to a whopping RM100mil collected. The numbers get higher with more members recruited.

And we wonder why there are not many reports made by the victims to the police or Bank Negara Malaysia against these con artists.

I have a relative who pours scorn on his father who works very hard to put food on the table but this arrogant young punk thinks he can make a huge pile of money without selling anything or working for anyone.

Another friend, who declared himself to be mentally-challenged to escape the bill collectors, used to laugh at those studying hard for their exams.

He said although he was illiterate, he would soon make millions and hire graduates to work for him. Of course, he didn’t see his millions.

These people were driven by pure greed, really. Social media is filled with stories of young people making tonnes of money, often living in Dubai, or driving around in gold-plated luxury cars.

Sometimes, famous personalities are dragged in to be part of these advertisements – without their consent, naturally.

Of course, Google and Facebook are not responsible for these fake news and fake advertisements.

The scams include binary option trading which is essentially an unregulated, and sometimes, fraudulent, mainly offshore activity.

Binary option trading involves predicting if the price of an underlying instrument – shares or currencies, for instance – will be above or below a specified price at a specified point in time, ranging from a few minutes to a few months in the future.

Those involve in it receive a fixed amount of money if the prediction is correct or lose the investment otherwise. It is essentially a “yes” or “no” betting, hence the name binary, according to one report.

But that’s another story.

The one that is hitting Malaysians – particularly those in Penang where many scams seem to surface – is the straightforward MLM.

To be fair, there are legitimate MLM businesses. These actually sell products. Members have to sell real products to earn their income, and not sell membership.

You know you are getting into a pyramid scam when they tell you to just put your feet up and get more people to join in.

The MLM is simply about finding new members – or rather, new victims. It is as good as paying you some silly fake gold coins. In some cases, even so-called virtual coins.

You are told that the more members you recruit, you will double or triple your income. The pyramid will come crashing down once no new members are recruited anymore.

But some dubious MLM have gotten smarter. They sell products but they are mostly “worthless” goods like accessories, stones, cosmetics, health and beauty products, among other things. Some sell low-quality health gadgets with unproven scientific claims.

Come on, don’t tell me your home is filled with air purifiers and magic water dispensers? Or you have some lucky charm? Or stones?

According to Mark Reijman, who advocates financial literacy, these MLM use cheap products to hide the fact that members are actually investing in a pyramid scheme,

He said the products are there simply to hide the truth. Members are investing in a pyramid scheme!

“If the MLM cannot explain the source of profits or give details about the technology of the products, or do not permit you to show your contract to outsiders, they are hiding the fact that their product is useless and the profits come from new recruits and not from product sales.

“Be wary when you are asked to buy a large inventory of the product. Don’t fall for ‘patented’ or alleged ‘US technology’ or secret recipes. It’s all smoke and mirrors.”

He advised the public to be on the alert if the product is not sold through regular channels that have served societies for millennia, such as stores and (online) market places.

“If it is such a great product, why can it not be sold through other channels? Perhaps because those channels don’t allow you to recruit new members and they want to protect their reputation against fake or low quality products?”

There is a lesson here – nothing can replace the old fashioned values like hard work and having honest earnings. Greed should be kept at bay.

In short – pyramid schemes are unstable because at every new level it will require more recruits in an exponential manner, as Reijman warns.

Soon, the scam will run out of people who fall for the scam, at which time the payments stop and that’s when press conferences are called by the victims.

Millions lost because of a hacking job? – now that’s something new.
By wong Chun Wai On the beat

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:

Company under the spotlight after investors did not receive payment …

 

 I am still in Malaysia, says JJPTR founder on FB page – Nation

//players.brightcove.net/4405352761001/default_default/index.html?videoId=5417427972001

Cops start probe into JJPTR – Nation | The Star Online

Get rich or poor schemes – Business News | The Star Online

More forex schemes are falling apart – Nation | The Star Online

Virtual money scheme offering 24% returns – Nation | The Star Online

Penang mall where cash is not king – Nation | The Star Online

Money games in Malaysia see increasing players – Nation | The Star …

‘Expose dubious financial schemes’ – Nation | The Star Online

JJPTR founder says he’s seeking help from IT experts – Nation 

Investors may lose RM500mil – Nation | The Star Online

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