Gold investment firm director 'goes missing'

Source: http://www.straitstimes.com/singapore/gold-investment-firm-director-goes-missing
21 Oct 2015

At least seven police reports have been made against a Singaporean businessman who is believed to have gone missing after allegedly taking his clients' money and gold.

Half a dozen local investors of Valiant Capital, a Singapore-registered gold trading company, said they had not received the dividends they were promised and had been unable to contact its director Simon Goh Chee Kin since June.

They invested a total of more than $2.5 million with the company, the six told The Straits Times.

All are former clients of the now- defunct gold trading firm Genneva Gold, which was raided by the Commercial Affairs Department (CAD) in 2012. The investors say Mr Goh is a former employee of Genneva who set up Valiant Capital in late 2012, promising to help them make back the money they lost.

They said they received monthly dividends of 1 per cent to 2 per cent for several months, before the payments stopped coming.

The company's Orchard Towers office has been vacant for months and the investors said Mr Goh used their money and gold to finance his operations in Shanghai.

Mr Goh, who is in his 30s, has also been accused of wrongdoing in China. A July 3 article in Shanghai Morning Post reported that about 300 Chinese investors, mostly senior citizens, were left stranded after investing an estimated 100 million yuan (S$22 million) with Valiant Capital's Shanghai office, and could not contact Mr Goh.

According to court records of Shanghai Xuhui district, Mr Goh and his wife Sophia Low are due to appear before the court next May as defendants in a civil suit over private lending.

In response to queries, the Singapore police said "it is inappropriate to comment on police investigations, if any".

Singaporean investor Chandran Nair, 63, lost $374,000 with Genneva Gold, and said he invested another $79,000 with Valiant Capital because he trusted Mr Goh.

"He said he's a former police officer and he has a wife and three young children. I went for his son's first-year birthday party."

The retired army officer and father of three said he is now working as a security officer to make ends meet. "I trusted (Mr Goh). He was a real sweet talker. Now we're all in limbo."

The co-director of Valiant Capital, who asked not to be named, said he had no knowledge of Mr Goh's whereabouts. He said that while he is still listed as a director of the company, he had stopped working for Valiant Capital months ago and is currently driving an Uber taxi.

"I had no power, I just followed Simon's instructions. People may say I'm the co-director and it cannot be that I didn't know anything, but it's true (that I didn't). My family and friends also invested and their money is gone."

He said Mr Goh's wife was finance director of the company. She is believed to be in Singapore, but could not be reached on her last known phone number.

Mr Goh had described himself in a 2012 interview with The Sunday Times as a "spender" and "risk-taker" who had been mired in credit card debt in his 20s before making his fortune trading gold and selling property. He also said he spent 11 years in the Singapore Police Force.

Valiant Capital is the latest gold investment firm to come under the spotlight here. In 2012, more than 10,000 investors lost their money to Genneva Gold. A year later, The Gold Guarantee founder Lee Song Teck went on the run. In February this year, more than 100 people lodged reports with the CAD against Suisse International.

The Monetary Authority of Singapore (MAS) announced last month that it plans to tighten regulations on certain unconventional investment products, such as gold buyback schemes.

New regulations, to be tabled in Parliament next year, will require such schemes to be authorised or recognised by the MAS.

But for some investors, the safeguards come too late. Mr Nair said: "My 36 years of work, my lifelong savings are all gone."

Too good to be true: Property deals that turned sour

Too good to be true: Property deals that turned sour ... eg. Brazil, Britain, Indonesia, Johor Baru

Source: http://str.sg/niF
5 May 2015

SINGAPORE - The Advertising Standards Authority of Singapore (ASAS) is tightening its rules on property advertisements here. The change is aimed at foreign property developers. Here's a look at several deals that have gone sour for investors here.

EcoHouse, Brazil

London-based EcoHouse enticed many investors with its unique proposition of investing in social housing in Brazil as part of the government's low-cost programme My House, My Life.

Investors were asked to shell out at least £23,000 ($47,150) per unit to help fund EcoHouse's development in exchange for an impressive 20 per cent fixed rate of return for a 12-month contract.

The scheme reportedly attracted over 2,000 investors globally, while at least 800 people in Singapore were said to have ploughed about $65 million into the scheme since 2011.

Initially, investment returns were paid promptly but concerns about EcoHouse's legitimacy started to emerge last year when investors did not receive payments on time.

After its Singapore office was abruptly closed down last August, the Brazilian government said that EcoHouse had no links with the country's social housing scheme. EcoHouse subsequently filed for voluntary winding-up in Britain.

Reports against EcoHouse have been filed with the Commercial Affairs Department (CAD), and a class-action suit has also been lodged in Brazil by a group of more than 100 Singapore investors.

Hotel and student hostel projects in Britain

About 200 Singaporeans are facing the prospect of losing about $20 million after investing in botched hotel and student hostel projects in Britain.

They had bought units in nine projects by British property developer Key Homes, which became insolvent and was put into administration last year.

Many of the investors are aged 40 and older with a number using their Central Provident Fund savings to buy these housing projects.

A group of 30 Singaporeans are looking to reclaim their losses by suing the lawyers who had represented them in the multimillion-dollar venture. The suit will be filed next month.

They are alleging that the firms did not inform them about the risks of the investments.

PT Magic Kingdom Island Resort Paradise, Indonesia

In 2002, 1,000 Singaporeans who paid up to $3,800 each to join Indonesian country club PT Magic Kingdom Island Resort Paradise were left stranded when the club went bankrupt. Despite collecting about $2 million, the club never started the resort project.

Villa Temasek, Indonesia

In 2001, about 90 Singaporeans who paid $16,000 for units in the Villa Temasek development in Bintan lost their money after the developer disappeared before work was completed.

Anjung Seri Condominium, Johor Baru

In 1995, some 37 Singaporeans paid between RM150,000 ($55,566 in current day conversions) and RM400,000 for apartments at the 199-unit Anjung Seri Condominium in Johor Baru. Two of the five blocks were left uncompleted because the developer ran into funding problems.

Singapore trader loses RM250,000 in black money scam

My good friend's finance staff was cheated US$100k in similar fake US$ scam. US$100k she used is from the company bank account. So sad. Please beware.

Source: http://www.themalaymailonline.com/print/malaysia/singapore-trader-loses-rm250000-in-black-money-scam
14 April 2015

KUALA LUMPUR, April 14 — A Singaporean businessman’s greed to make quick money cost him a bomb when he was cheated of RM252,000 by a black money syndicate.

The businessman, aged 54, was introduced to three men from Cameroon and Guatemala by an acquaintance.

City deputy police chief Datuk Law Hong San said the businessman, accompanied by his acquaintance, met the trio at a hotel in Jalan Tun Perak last Tuesday.

“The three men showed them how pieces of black paper were turned into US currency after they were ‘washed’ with a liquid,” Law said.

They persuaded them to buy the black paper and a chemical liquid for US$70,000 (RM252,000) after showing them genuine US currency notes.

“The suspects were slick and the businessman did not suspect anything and handed them the cash,” he said.

“After receiving the cash, the three men told the victim to wait in the hotel room while they went to get more black paper and liquid from their car.

“Fifteen minutes later, the victim received a text message from the men saying police were raiding the hotel and asked him to leave immediately.”

Law said the businessman came out but did not see any policeman. He then realised he had been cheated.

The businessman lodged a report at the Dang Wangi police headquarters.”

Law said police arrested the three suspects in a raid on an apartment in Ampang on Friday.

“The police team seized a printer, counterfeit notes worth close to RM1 million and also a type of powder,” he said.

Law said the powder was used to give the surface of the fake notes texture.

The suspects, aged between 35 and 38, have been remanded to assist in the investigation.

He said the suspects had valid travel documents.

Scam alert: Police warn against airport contest fraudsters

Source: http://www.straitstimes.com/singapore/scam-alert-police-warn-against-airport-contest-fraudsters
28 Sep 2013

If you recived a call informing you that you have won return air tickets to Japan in a contest organised by Changi Airport last year, don't be duped into giving your personal information such as passports details and mailing address to the caller to claim the "prize".

The police said in a statement on Saturday that Changi Airport Group (CAG) has clarified that those calls are "not authentic".

"For contests organised by CAG, winners will be notified via telephone and email, followed by an official letter sent to them for their acknowledgement," said the police. "When in doubt, members of the public can call Changi Airport's customer hotline at 6595 6868 to verify."

Members of public are also reminded to be wary of such phone calls and adopt the following crime prevention measures: Do not disclose your personal particulars such as name, NRIC number, residential address and contact details to unknown individuals; and lodge a police report via the Electronic Police Centre (ePC) athttp://www.spf.gov.sg/epc/ or at any Neighbourhood Police Centre/Post if you receive any call of such nature, or dial '999' for urgent police assistance.

Japan Warns Of Property Investment Scam In Cambodia

Source: http://investvine.com/japan-warns-of-property-investment-scam-in-cambodia
28 Aug 2013

The National Consumer Affairs Center of Japan and related bodies are warning of a rise in fraudulent investment schemes involving real estate in Cambodia, where economic growth is boosting foreign investment, the Japan Times reported on August 27.

The center received 1,312 inquiries between October 2011 and early August 2013 from consumers who said they were approached about investing in Cambodian real estate.

It turned out that 27 out of 136 people who contacted the center had invested an average of about $31,000, with most unable to recover their cash.

In one case, a 78-year-old man sued a Tokyo-based real estate firm in March for the return $31,500 he paid for a condominium unit advertised to be completed at the end of 2013.

Before the purchase, the man got a call from someone claiming to be an agent for a firm who said it would buy the property for double what the man paid if he first bought it as a proxy. Investigations showed that a house stood at the site but there was no sign of any construction.

Experts advise to seek legal assistance before entering any property deals in Cambodia.

Travel plans tripped up by errant agencies

Source: http://travel.asiaone.com/article/news/travel-plans-tripped-up-by-errant-agencies
4 Aug 2013

SINGAPORE - Ms Jill Foo was packed and ready to check in for her flight to Germany when she was told her $1,443 ticket had not been issued. 

Stranded at Changi Airport, the 51-year-old called her travel agency Zuji repeatedly but there was no response. 

"I asked the girl at the counter to check again and again. She couldn't find the booking," she said. "I was so shocked." 

So as not to disrupt her travel plans, she paid an extra $2,527 for a replacement ticket, hoping to settle the matter on her return. 

The sales executive has made a police report, sent Zuji numerous e-mails and taken the matter to the Small Claims Tribunals. She managed to wrangle a refund of $1,443, but nothing for the new ticket. 

The Consumers Association of Singapore (Case) has received 48 complaints against Zuji since 2011 - 13 in the first half of this year. It is the only online travel agency to have received complaints.

Overall, complaints against travel agencies are rising. Case received 732 in the first half of the year, 1,436 last year, 1,396 in 2011 and 994 in 2010. 

Gripes range from unsatisfactory service to the inability to obtain refunds. 

Case cited a case in February of a group of eight who paid $1,320 for a two-day trip to Bintan. The package was to have come with free meals and massages, but when they got there, the group was asked to pay for them. 

As Singapore's appetite for travel has grown, so has the number of new players on the market. 

According to a 2012 Euromonitor International report, outbound tourism here is set to grow at a compounded rate of 2 per cent each year to reach 16 million trips by 2016. 

This, said the National Association of Travel Agents Singapore, has led to new operators muscling in on the action. There are now 1,122 active travel agencies here, said its spokesman, up from 975 in 2010. 

This cut-throat competition is one reason for the rising number of complaints, said Case executive director Seah Seng Choon. 

"Some agencies cut corners to try to reduce costs, others oversell their packages to get customers to sign up," he said, pointing out that certain companies have cut costs by outsourcing bookings to offshore call centres. 

Zuji's senior marketing manager Yvonne Du said that when the company first opened here in 2002, there were "no real competitors in the online space for travel". 

"Now we have brick-and-mortar shops selling packages online, customers have more choices and they require us to go the extra mile," she said, adding that this can be difficult as Zuji has no physical sales counter here. 

Instead, bookings made in English are routed to the firm's call centre in India, while those made in Mandarin are channelled to its other centre in Guangzhou. 

Admitting that the agency has received complaints about the service of staff at the centres, she said that trainers are sent out to them once a month. 

"The rationale to move our call centre out of Singapore in 2007 was a cost issue," she said, adding that it is difficult to monitor quality this way. "It's a challenge for us, but we're working on it." 

As for Ms Foo's case, a mistake was made, said Ms Du. Staff at the call centre gave confirmation when the flight had not been booked. The agency is working to resolve the issue with Ms Foo. 

EXTORTION SCAM BY PERSONS IMPERSONATING AS POLICE OFFICER OR FATHER

3 August 2013

source: Sengkang Neighbourhood Police Centre https://www.facebook.com/Sengkangnpc/photos/a.140956589388501.32282.136178646532962/221629917987834/?type=3&theater

Police have seen a number of scam cases involving persons impersonating a police officer or father who worked together to extort money over the phone from male victims. In the cases reported, the male victim had responded to an online advertisement on one of several websites featuring a scantily clad female offering massage or escort services.

Members of public are advised to take the following preventive measures when responding to online advertisements:
1) Be wary of messages or calls from unknown people.
2) If anyone attempts to extort money from you or should you become a victim of such an attempt, call the police immediately.
3) Do not remit or transfer money.

Prize Money Phone Scam

Another phone scam. I received such call before from fluent-Chinese speaking lady from a HK number saying that they got my number from Singapore Chinese Chambers of Commerce and there will be an event coming up. I picked up the phone twice over 2 weeks and ignored all the calls from that number after that as I thought it was a marketing call. Please beware...

Tuesday, June 25, 2013

Originally posted by http://scams-singapore.blogspot.sg/2013/06/prize-money-phone-scam.html

We have received an email as of below:

This is one of the most convincing scams that I almost fell for which happened to me over a period of a month.

I first received a call from a "blocked" number 2 months ago, where a female woman who speaks pretty good chinese asked me a few survey questions about my handphone choice as well as electronic products. I was eager to get off the phone so I answered quickly and without much thought. The lady ended the call by saying that her company will be having an electronic fair the next day in Singapore and that my number will be entered for a lucky draw. I didnt give it much thought afterwards.

One month of silence.

4 weeks later I received a similar call from the same woman who spoke fluent Chinese. She asked me whether I could remember the similar call she made 4 weeks ago about the lucky draw. She identified herself as Chen Xiu Zhu. I was eager to get off the phone so I just skimmed through her questions with all my superficial answers. To which she responded calmly that my number won 3rd place for the lucky draw, which included a 15 day tour to America for four people that is worth 618, 600 HK dollars. I was very skeptical but the woman was extremely glib and persuasive. She even went to the extent by telling me that this fair can be found on local media (as they had coverage over it) and I could check the chinese news. She probably knew by then that I wasnt too good with my Chinese and tried to lead me to that unfamiliar direction. She even provided me a link to the Hong Kong based company's internet address where I could find all the information of the fair and lucky draw on it. The link is: www.xinskhk.com. The company's name is Hong Kong Hong Xin Shun electronics 

She then asked me to claim the prize within the next two weeks, just by simply providing copies of my passport and passports of my family members to her. I then asked her to give me some time to check it out and she gladly did. During the conversation she also noted my apparent skepticism and spent a good 10 minutes telling me not to worry that it isnt a scam and that they will not collect a single cent from me. When I got off the phone I immediately went to check the website and true enough, the company seemed pretty legit. I then went to consult my dad to ask if he thinks its legit and we both were skeptical about it.

The very next day, the same woman called back and said that I had the chance to either take the trip or convert the trip into cash which would amount to 540,000 HK dollars after reduction of a proportion of money. She kept congratulating me and even provided me more details about the company, because at that point I asked her what the catch was. She said that the Hong Kong based electronics company was planning to come to Singapore to set up shop later in October that year and that all I had to do was to come down to the event and answer reporters which will be covered by the media. Sounds pretty legit so far, as she kept emphasizing that her company will not take a single cent from me. All i had to do was to agree and provide her my name, IC number, Date of birth and bank account number and they will transfer the money over.

These are the factors that made the entire operation seem legit:
1. She kept emphasizing that her company will not take a single cent from me
2. The website she gave me seemed legit and even contained a news result on the lucky draw of which my phone number was listed
3. I couldnt seem to find any scam reports or alerts to this particular case on the internet
4. She managed to convince me that her company was setting up shop in Singapore later in the year
5. She managed to keep me on the phone for close to an hour, explaining that she will never resort to a scam and told me all the company was doing etc etc, basically building a very strong rapport with me, even telling me that I could go to the police if I wanted to but emphasizing that her company was legit
6. The very next day she even set up an account for me under the guise of a hong kong hang loong bank or something and even gave an account number: 0008168959 and a password that all seemed pretty legit
7. She willingly talked to my dad for an hour reassuring him that its not a scam
8. She conducted herself in a very professional manner, so much to the extent where i literally placed my trust in her

What busted her:
1. So it was during the week of dumpling festival where she told me that there will be three days of holidays for her and she will call me back the week after to confirm the transfer of money to my POSB account. So far so good, she hasnt asked for any money yet
2. Two weeks passed and she finally gave me a call, telling me that another personnel from the "bank" will give me a call later to confirm the transfer of funds
3. truly enough another person called me and requested that i hand over another document before the transaction can be complete (sounded very professional)
4. As they probably played on the fact that my Chinese wasnt very good, the other person made me call Chen Xiu Zhu (that same woman) from the company to assist me in the handing over of another document (which makes the story more legit)
5. Finally, after weeks of playing it back and forth, Chen Xiu Zhu finally says that I needed to hand over 4.5% of the amount over to the "bank" holding my money as they were transfering funds across countries. The first red flag. She made the mistake of identifying the instituition that held my money to be government run.
6. The second red flag - A call made from my dad to the monetary authority of Hong Kong revealed that there was no such existing agreement in such a government instituition and advised that it was most definitely a scam
7. A call made again to Chen Xiu Zhu, who suddenly became hesitant and anxious in her speech, insisting that this isnt a scam etc etc. The final red flag came when the pre-existing telephone number suddenly became defunct when I tried calling the same number as listed on the company's website
8. A more thorough check on the internet, I managed to find a very similar case posted by "almost victims" on http://saltwetfish.wordpress.com/2009/10/22/hong-kong-price-money-phone-scam/#comments

Really angry because so much thought and planning has gone behind the many phone calls made back and forth. No matter how sweet tongued and glib these people sound, as the old saying goes, if its too good to be true, it probably is!

Scammed tourists begin class action

http://www.smh.com.au/national/scammed-tourists-begin-class-action-20130420-2i6xe.html

April 21, 2013

Australian holidaymakers are pursuing a class action lawsuit against one of the world's largest banks after hundreds of false accounts were used in an international travel scam.

Over the past 18 months, tourists have wired millions of dollars into accounts with London-based Barclays Bank to pay for luxury accommodation in dream destinations around the world. The vacations are booked through popular holiday rental websites including HomeAway and FlipKey, which is mostly owned by TripAdvisor.

However, the Barclays Bank accounts are run by criminals who, after hacking the sites and ''phishing'' the original email inquiry, assume the identity of the property owner and steer customers into making bogus bookings.

The internet is awash with blogs and forums where victims recount how they booked holiday accommodation and travelled overseas, only to discover the property owner had never heard of them.

In the past 12 months, Australians have become a prime target. While some have been left stranded in Miami, Florida and Paris, it is the luxury Balinese villas closer to home that are proving the most popular bait.

Fairfax Media can reveal that a group of Australian victims and Bali villa owners has enlisted London-based law firm Edwin Coe - which has successfully tackled one of the world's largest banks in other group actions - to commence a legal action against Barclays Bank.

Beth King, from Victoria, who owns a holiday rental villa in Seminyak, Bali, said: ''With their sophisticated hacking skills and inside knowledge of travellers' booking behaviour, these scammers are trapping people daily. This could all end tomorrow, if Barclays met its legal obligations and vetted the identity of account holders.''

Beth King, from Victoria, who owns a holiday rental villa in Seminyak, Bali, said: ''With their sophisticated hacking skills and inside knowledge of travellers' booking behaviour, these scammers are trapping people daily. This could all end tomorrow, if Barclays met its legal obligations and vetted the identity of account holders.''

On Saturday, a Barclays Bank spokesman said the company ''complies with all regulatory requirements''.

''When we are made aware of inappropriate conduct on accounts, we immediately investigate and take the necessary steps to close them,'' he said.

Former two-time Winter Olympian Hannah Campbell-Pegg was one of dozens of victims to contact Fairfax Media after last week's report on the scam. She presumed she had been dealing with the Australian owner of a luxury villa in Canggu, Bali, a fortnight ago, but it was an impostor who had intercepted their communications.

Ms Campbell-Pegg, 30, said: ''I booked through FlipKey. After reading the article, I became sceptical because I also transferred payment into a Barclays account in London.

She added: ''I contacted the owner, only to discover I had not been dealing with her. It seems her reply to my original email never made it through to me. It was intercepted by the scammer who then posed as her and sent one of his own … I consider myself one of the lucky ones. Yes, I lost $1600 but we were taking my partner's daughter on her first big trip overseas. Like countless others, we could so easily have arrived at the villa, only to discover we had nowhere to stay.''

Criminals previously ran the scam using dozens of accounts opened through another Britain-based bank, Lloyds. The bank subsequently tightened its identification process.

The scammers then began swarming Barclays branches across London, starting some 18 months ago.

Money continues to pour in from around the globe. Last November, Jennifer Bobyk, from Sydney, booked a three-month stay in Chiang Mai, Thailand, through online travel site TripAdvisor, forwarding a $2000 cash transfer via Barclays.

''We took a taxi to the estate but the owner said she had not received the booking or the money. When I Googled the address of the account holder (in England), it was a house for sale. I contacted TripAdvisor, our bank and the ACCC. Nobody was interested.''

Fiona Melia, from Merimbula on the NSW south coast, parted with $2900 in February to book a luxury villa in Seminyak, where she was due to arrive next week. When the property owner recently contacted her to ask whether she was still interested in staying, the truth unravelled.

''The scammer intercepted my email, then acted as the owner. He replied to all my individual emails about particulars like breakfast. Everything appeared normal.''

The Barclays spokesman said the bank regularly provides advice to help customers avoid fraud, including ''using reputable third-party payment processing sites rather than making a direct transfer to the seller's bank account."

FlipKey failed to respond to questions from Fairfax Media but HomeAway, which lists more than a 1000 privately owned rental villas and apartments in Bali alone, said it had launched a ''massive education effort'' and a basic rental guarantee which reimburses phishing victims up to $1000.

General manager James Cassidy advised travellers to always ''call the owner before they send any money, to confirm their reservation''.

Stung speak out against litany of lies

Victims of the scam open up:

Anna Jaques, Sydney: ''My 21-year-old daughter Laura rented a condo in Miami advertised via Vacation Rentals [a subsidiary of HomeAway]. This was her first trip away from home after completing school. She rang me in hysterics. When she arrived in March, she was told by the manager she had been scammed. The scammer had intercepted communications between vacation rentals and himself, subsequently taking his name to conduct business. She is still travelling the US. I have filed a fraud complaint with the ACCC and Barclays Bank, London. I've heard nothing.''

Nicole Leighton, Sydney: ''We booked and paid for a villa in Ubud, Bali, for seven nights (in March). The villa owner had no record of our booking … he had had four other cases. He helped us contact Barclays Bank. Barclays simply said 'thanks for the call' and advised us if we wanted our money back, we would have to hire a lawyer to do so.''

Jon Jones: owner of Villa Amrita, Ubud, Bali: ''The latest person who believed he was coming to stay with us arrived Wednesday. I have been trying to speak to Barclays since January. I told them, 'look at the pattern. You have a bunch of accounts receiving wires from all over the world'. They wouldn't even let me submit any documentary evidence to demonstrate what's happening. They don' t want to know.''

Robyn Graham, Melbourne: ''We sent through a request on HomeAway.com and began email exchanges with the 'owner' of a luxury villa in Bali. We were sent a rental agreement and paid £950 into an English Barclays account. We were due to arrive this Tuesday. But we became suspicious when we had to chase the owner to make sure the money had gone through. When we Googled the name attached to the bank account, pages of scams appeared. He had done the same to people around the world. The most horrible part is, a renowned website put us in direct touch with him. Their response, to date, has been appalling.''

Nicole Harding: ''In January 2013 I sent a booking request through HomeAway.com requesting availability of dates in October for Villa Zara in Bali. I transferred $2025 to Barclays as payment for the accommodation on February 27, 2013, after numerous emails back and forth between myself and 'Paul' confirming dates. As Paul never replied, I did a Google search and found … sites advising of the scam.''

Full statement by Barclays Bank

“Barclays can confirm that in opening and managing accounts, it complies with all regulatory requirements including in respect of identification and verification.  When we are made aware of inappropriate conduct on accounts, we will immediately investigate and take the necessary steps to close them.

“We recognise that some consumers’ interests have been damaged as a result of the conduct of some customers and that money has been lost.  Regrettably, we are unable to provide any refund for individuals who lost money before we were made aware of the situation.

“We regularly give advice to our customers to help them to avoid this type of fraud for example by using reputable third party payment processing sites rather than making a direct transfer to the seller’s bank account.”

The Gold Guarantee Blowing Up In Singapore?

Source: http://www.zerohedge.com/news/2013-01-25/guest-post-gold-guarantee-blowing-singapore
Originally posted at The World Complex blog Tuesday, January 22, 2013

Today's reminder of the importance of taking physical delivery of gold at the best price possible comes from Singapore.

The Gold Guarantee is (was?) a company based in Singapore allowing "investments" in gold. They had two separate schemes. One allowed victims to take delivery of their gold, but at an approximately 30% premium,  albeit with a monthly repayment of a small portion of the premium for as long as the gold was held (and the company remained solvent) and an option for the company to buy back the gold at a price related to the spot price. The other scheme offered a gold certificate and a higher monthly payout.

The monthly payouts amounted to over 20% p.a. I am unaware of any method by which a company could sustain such payouts through normal business practices. Were I aware of such a business, I would invest in it.

Today's Straits Times reports (unfortunately this story is not in the free online section) that the owner of the company is unreachable, and the offices have been shuttered since about January 9. The last communication most shareholders had was an email sent on January 8, announcing a merger between The Gold Guarantee and a similar company called Asia Pacific Bullion.

Customers have been dropping by the office and showing up at the CEO's home since he vanished, but to no avail. Some are facing losses of hundreds of thousands of dollars.

The latest gold price reported on the company's website is dated January 7. What appears to be an apologist blog posting for the company is dated January 3.

Here is a link to a discussion group which includes some unfortunates who bought gold from this company within the last few months. Note the advice they have received.

The scheme looks like a carbon-copy of the Geneva scam which fell apart in October.

Avoid certificates, and if you take delivery of gold, verify the spot price (it should be part of your due diligence).

Update:

Here is an article on the topic by a local financial blogger.