MLM Scam . What a dirty headline to read.

Another MLM SCAM in the form of Seaweed Farming.  Investors file suit against the promoter for RM26m refund.

 

This scheme is no different from those investment lots in properties, Sunshine Empire, Café franchise chain, Swisscash and Goldbullion.

A few UK, Canadian and USA companies are selling share(lots) in property,  pending development order, with the promise of huge return. Basically, they purchased a piece of cheap agricultural land in some remote area and promise the investors of high potential in value appreciation, once the land is converted to residential or commercial use. Investor does not get a title document. Just a piece of useless paper of purchase.  UK Land has been declared bankrupt. A few players are still operating in Malaysia, after being raided by Malaysian Central Bank(Bank Negara Malaysia). 

I smell rats. See the earlier post.

 

There are simply too many gullible Malaysians with lots of cash to submit to these schemers.  Greed played a big part in them. They only cried foul after they have lost money. Otherwise, they keep on promoting to their friends and relatives. 

Easy Money is Dirty Money. Remember this.

(Sep 30, Kuala Lumpur) -  Seven investors in a seaweed business representing 2,000-odd investors in Perak who claimed to have been deceived to invest in the venture since 2007, today filed a suit at the High Court here to get a full refund of their investment totalling RM26 million.

They named four companies, Fresh Palms Sdn Bhd, A.K United Sdn Bhd, Genuine Starlight Sdn Bhd and Loyal Sunrich Sdn Bhd, and two individuals P.G.P Nathan, 39, and Choi Kok Peng, 45, as the defendants.

The suit was filed through the law firm of N.P Ramachandran & Associates at the High Court Registrar’s Office at 9.30am.

Nathan is a director of Genuine Starlight and Loyal Sunrich while Choi is a member of the Board of Directors of Fresh Palms and A.K United.

The seven plaintiffs — P. William Rajah, 34, Chong Pek Kuon, 36, R. Edwin, 48, Abu Bakar Maidin, 52, S. Nathan, 56, M. Gunaballan, 58 dan P.K Pathmanathan, 58 — claimed to be representing the 2,000-odd investors who had suffered losses after investing in the seaweed business, which was conducted in Semporna, Sabah.

They claimed that the fifth and sixth defendants (Nathan and Choi) had cheated them by claiming hefty returns awaited legal investors of the venture.

They also claimed that Nathan had made a representation that each invested lot would receive a revenue three times the value of the investment within six months, with each lot initially priced at RM3,300, but was later increased to RM6,900.

The plaintiffs also claimed that investors who invested more than five lots were promised a holiday package overseas, while those who introduced a friend to invest in the venture would be given a commission.

Choi was also alleged to have promised a revenue three times the value of the investment, besides an investment certificate from VOIPCOM USA Inc, a United States-based company which allegedly agreed to carry out the project.

The plaintiffs claimed that because of the assurance given by the defendants, they had invested a total of RM25,826,800 between February 2007 and November 2008.

They are now seeking a full refund of the investment money, eight per cent interest, costs and other relief deemed fit by the court. — (Bernama) September 30, 2010 (Malaysian Insider)