Ponzi model and MLM model are different, legit MLM model will not asking for expensive membership fees. (ok, put a stop here I don't want discuss MLM here as many of you might not agree)

Ponzi model, people on top will gain a lot while people down there will have to keep on digging out money....

after this incident, my mom really quiet already and not to talk about this infront of me. Pity her also cuz she never listened to me and blindly follow her friend and "invest" this kind of thing, can't blame her also cuz our elders like to follow what friends do. Not to say she is lacking money of what, she has various of investments - let it be mutual fund, shares, mlm, FD and have earn some extra pocket money but when she trying to step her feet on this gold "investment"...
I already sound her to open account with bank and invest via bank but she is not listening and we ended up quarrel few times. I shown her all the facts (like you all showing) and compared with all the investments she has (shares, mlm, mutual funds, FD) and told her that all the things she invested/doing are much more legit than this gold "investment" .... I even shown her BNM website saying this company been raided before while the other things she involved still actively doing biz and don't have any wrong doing and raided by BNM but what to do....parents always think they are "old" enough and know thing more than us
She brought me to their seminar regarding the laws or acts and all the things they presented were protecting themselves more than so called investors.
Lost is not much but for me is a very valuable lesson for her.

Really sad and thanks for sharing your experience. I believe alot of people cannot accept the ROI being stop suddenly. As some mentioned, they are after the hibah rather than the gold on hand, coz the gold now can't generate any recurrence income until it reaches 40% above thier buying price.

Just comfort her i guess, you needed to acknowledge as a lesson learned, she still got the gold, its not 100% lost 

Of cos must shared out the real life experience so that people don't stepped their legs on this kind of investment.

I am not scare people like us, what i scare is our eldery cuz they tot they "eat salt more than we eat rice" (meaning they have experience more than us) and blindly follow what other friends do..
lucky she didn't ask anyone to join, if not she lost another thing - which is the friendship

True la... infact elder people that is educated are pretty firm on their standing on the things they intend to do .. no doubt about it...i guess u need to take it easy la... apabila this things happen they really need support rather than bombard....

I think nobody here know what evidence BNM have that granted them the permission to freeze the company asset. Also, freezing the asset will help in investigation n prevent them manipulate their asset or transfer it out of the country.

I think under AMLA BNM can freeze the assets based on suspicion only, no need court order. correct me if I'm wrong.....

Possible to end up like genneva

Ponzi model and MLM model are different, legit MLM model will not asking for expensive membership fees. (ok, put a stop here I don't want discuss MLM here as many of you might not agree)

Ponzi model, people on top will gain a lot while people down there will have to keep on digging out money....

after this incident, my mom really quiet already and not to talk about this infront of me. Pity her also cuz she never listened to me and blindly follow her friend and "invest" this kind of thing, can't blame her also cuz our elders like to follow what friends do. Not to say she is lacking money of what, she has various of investments - let it be mutual fund, shares, mlm, FD and have earn some extra pocket money but when she trying to step her feet on this gold "investment"...
I already sound her to open account with bank and invest via bank but she is not listening and we ended up quarrel few times. I shown her all the facts (like you all showing) and compared with all the investments she has (shares, mlm, mutual funds, FD) and told her that all the things she invested/doing are much more legit than this gold "investment" .... I even shown her BNM website saying this company been raided before while the other things she involved still actively doing biz and don't have any wrong doing and raided by BNM but what to do....parents always think they are "old" enough and know thing more than us
She brought me to their seminar regarding the laws or acts and all the things they presented were protecting themselves more than so called investors.
Lost is not much but for me is a very valuable lesson for her.

yeah. i didn't blame them just don't want to mention this again, don't want to add salt on her wound

True it helps the investigation & prevent further manipulation, but it's kinda scarry that BNM can stop you anytime they like innit?
I think at a minimum they should have a court order or warrant la... at least look legit to rush, if not later you get a bunch of 20 ppl who wear uniform and then go raid a bank or Poh Kong.. then how?

We humans are emotional people but we like to think of ourselves as logical people. There are people out there who knows this very well and exploit this fact. They know how to push our buttons and make us act based on emotions rather than logic.

If you follow logic, you will never invest because the plan does not make sense. Here's how it works:

1. They sell you gold at a 25% premium. This means you are buying the gold at 125% price.
2. They give you 2% 'hibah' per month as incentive for you to continue with the contract. This means if you stay for 1 year you get 24% from your investment.
3. If you calculate properly at the end of year 1 you are still behind on your investment by 1% (125% paid in advance minus off 24% 'hibah' returns after 12 months = 1% outstanding on your investment).

Thus to make any money at all you need to wait at least 1 year plus 1 month when they pay the 2% again on the 13th month.

Of course they blind you to this fact by saying that you get to keep the physical gold. This seems like a good opportunity but the gold you are holding is at best only at 100% of your initial investment value. Thus your exposure is really the 25% premium that you paid up front.

Logically you are investing the 25% premium and to see any profit on that 25% you need to wait at least 13 months and even then the return is a paltry 1%.

Does this seem like a good deal anymore?

True it helps the investigation & prevent further manipulation, but it's kinda scarry that BNM can stop you anytime they like innit?

Well, I don't know whether they should have at least court order or not. The Act gives them such power, so they act within their power. Go tell them to amend the Act.

The Act states BNM should act based on suspicion, not just suka2. If I'm doing legit business, I don't find it scary anyway, because my business is legit, and nothing to raise the suspicion.

If many people make a hu-ha regarding the absolute power given by the Act to BNM, maybe this issue will get tabled in the parliament, and see if can amend or not. No people make noise, so I guess the lawmaker assume everyone is fine with it......

Like others say, if u have nothing to hide then why scary ? Somemore, its on case to case basis, in this case, the amount of money, the numbers of ppls involved n the impact on the country are too big to put on risk.

The thing with investment is nobody wants to know how it works i.e. understand the risk. Everyone wants a "sure win" situation where in life, and investment 101; there is no such thing! But human nature is gullible. Who would advise one to dump all the life savings into investment and hope it will grow? Who is guilty of that? The so called "half-assed" agents whom do not understand investment 101?!

Like others say, if u have nothing to hide then why scary ? Somemore, its on case to case basis, in this case, the amount of money, the numbers of ppls involved n the impact on the country are too big to put on risk.

Erm, if la... Genneva is legit then I think they will need to look into this or maybe people will make noise to get this rule amended.

There is a big difference between suspision and reports/complaints. Further more the freezing of a company will have adverse effects on the company portfolio, trust and other, not forgetting the potential business and stuffs.

I still think they should at least get a court order or warrant. Because in order for them to do that, they will need to show the court sufficient and relevant evidence.

Yeah I agree with your point no 3. need hu-ha first then they will change. Sad the current government not so smart. 

No la I was refering to the adverse effects on the company.

Imagine a legit company gets Frozen... wah lau, they not only lose potential business & face liao... a lot more things they rugi... question is who gonna pay for it... you get me?

No la I was refering to the adverse effects on the company.

Imagine a legit company gets Frozen... wah lau, they not only lose potential business & face liao... a lot more things they rugi... question is who gonna pay for it... you get me?

No la I was refering to the adverse effects on the company.

Imagine a legit company gets Frozen... wah lau, they not only lose potential business & face liao... a lot more things they rugi... question is who gonna pay for it... you get me?