We have started to see a few types of IRC members:


1) those justifying their "investment" by saying the progress is "so far so good" (monthly returns OK, food voucher usable) , so things will be OK in the future. << overly optimistic and in some ways, ignorant.

2) those who know IRC won't last and will eventually "victimize" the late members. And since they're early joiners and benefiting from it now, they don't care that much about the people signing up under their name. All they wanted is their current status is OK (and they will bail out when the time is 'ripe'). And as for how much "losses" they downlines and further downlines will get, its none of their business also. << scums of of societies who go very far to deceive and cheat in order to expand downlines (alot of these [censored] in various MLMs)

Group (2) are the scums that that if we happens to be frens and relatives to them, we must avoid them as their are ethically/morally corrupting.

The most basic is that:

No company can start or run an investment scheme as well as taking in public money's deposit for investment without SC approval.

So if one said it is investment scheme then SC needs to clarify it.

I don't know the scheme in details so no comment whether it is legitimate or not.
A lot of things can be run or happened to be in grey area.

A real highly profitable company generally won't need to seek for other's money, as if they really need to they can through :
1. bank loan
2. become public listed company.

which in this way, the financing cost is way way cheaper than other alternatives.

If one is joining in a private company as shareholder, scheme, or whatever plan, which has no SC approval or trustee on behalf, your risk is fully exposed to the company management sincerity, liking and whatever they wish to which one is powerless to do anything.

Don't mean to comment on IRC, just a brief comment on some general questions asked.

This is another Sunshine Empire. =)

Cherroy, IRC have a new scheme which is a "binary MLM", you can refer my post #284. I think we should discuss the legitimate of the new scheme (binary MLM) instead of the old scheme (investment).

Please include some fact or point to discussion. We can't said IRC is scam without any proves. Thank you.

Actually any scheme or plan offered out there, the main risk or question we should always ask is what is the intention behind of those scheme besides the legitimate issue.

In any scheme, we must sort out both legitimate issue and intention behind of running it.

MLM doesn't mean is an investment scheme, 2 different front, but there are some grey area in between, that's for sure.

If as you said, they run MLM, does it have MLM license?
Yes, then you proceed to another aspect.

Does the MLM cross the line of investment?
Yes, then we have a problem with SC.
No, ok proceed to another aspect.

A company can apply MLM business and getting MLM license to run its business, but the company can just run based on recruitment purposes to generate fee and profit and money to the company, it is still legal, even you see it from left to right. Just we know it is not a sustainable way to do it.

One can set up an MLM company that required member to put deposit or memberships deposit fee of 1000, if they can get 1000 member then it is 1 million cash that company can utilise upon without any sweat nor paying interest to those money. Imagine that MLM structure of 10,000 member, 10 million at stake.
That's why BNM is setting a rule that ordinary company cannot take in deposit without any approval being granted.

In the recruitment based MLM,
Does it legal? Yes
Does it making profit to those joining? Yes, as long as there are late comers to pay the early birds. But number or members are not indefinite, there is some point, it will hit the saturated point.
Does it a ponzi scheme? Company and members will claim definite no, it is MLM business as it has MLM license. But we know it is no different and thin hair line difference between.

Beside the legitimate issue, old scheme or new scheme doesn't matter, it is the intention why the company want to do it in the first place. Satisfy this question is the most important issue, no matter how the scheme is run.

Take a bigger picture and see from the top side, instead of surrounding round and round below at the surface. No offence.

Cheers.

Above statement is none nor anything related to IRC or comment on it.

Sooner IRC new outlet is going to land on Pan Palace Plaza (SUNSHINE LIP SIN) Penang island. I hear is June 2009....n_n

my friend who doing this MLM irc tell me that they have buy over another company which it has license to run MLM.
and they change the old scheme to new scheme is probably the old scheme is not running well so they change to new one. compare the old and the new scheme, the new scheme is much clearer and more easy to understood.

Good explanation from Cherroy, so now the question is coming.

IRC don't have AJL license, http://www.kpdnhep.gov.my/index.php?option...=215&Itemid=216. As whitegoh said, IRC have buy over another company which it has license to run MLM. May I know what is the company name ?

Isn't this similar to what Bernard Madoff did, he used other people's money to make money. Similiarity to a ponzi scheme?

I had heard about this IRC thing, as much as it sounds like a good deal, who gives away free money for long term ? This really just sounds too good to be true.

If anyone has MLM no license yet, and if now already been running an MLM scheme, then it is not right in the first place.

Is this the same as Steven's Corner?

You mean Steven Tea Garden?

Madoff ponzi scheme exposed because a lot of investor decided to withdraw their investment and Madoff could not afford to pay them, hence the bubble burst
i believe IRC been tracking by BNM, but they can't prove this is ponzi scheme because they did not stop the payment monthly

for those who think this is a "good" investment, think twice, even share market cannot guarantee 100% return in 5 years time, remember high return = high risk, u all should know this in your mind
what i hate about MLM is their scheme, dragging one and another into deep hole and hoping another one join them in order to profit/breakeven

Investments itself does not have risk.
Risky or not, is depend upon the investor.

For me I can get high return but very low risk.
I personally known some are able to do that too.


I like to emphasize again, this is not an MLM.
It's a scam.

every investment tend to have risk, even putting money into FD also got risk, is just the matter high or low
even through i do not agree this plan, i won't call them as scam, because they still maintain the payment every month, and u don't have evidence to label them as scam

There are reports from forumer, some getting delay payments.
I will still call it a scam.
Even a legal MLM can be turn into a scam.

Crossing a road have a risk.
Low risk or high risk depends on how you cross the road.
If you don't cross it, where is the risk?

All investments that investor invest in will have risk.
In one investment vehicle, most investor make it high risk, while some are able to make it low risk.

This post has been edited by jasonhanjk: May 23 2009, 08:43 AM

Sidenote, (not IRC direct discussion),

I don't agree on the statement "they still maintain the payment, then we can't label it is not a scam".

As long as a investment scheme is built on non-sustainable pymarid structure of using late comers' money to pay the early birds, then it is already a scam in the first place. Just how long it goes before collapsing.

or

an investment scheme is without SC approval, it is illegal in the first place.

i totally agree with cherroy . without security commission approval , everything is illegal ... altho everyone is doing it !



This post has been edited by steventan85: May 23 2009, 07:35 PM

ha ha, near my house

this is not true, it depends on which umbrella the business is regulated under ie. Bank Negara, SC or SSM. Although all 3 bodies falls under Min of Finance, not all investment goes under SC.

This post has been edited by DannyOP: May 24 2009, 10:19 AM