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 Island Red Cafe, MLM Business 5% fixed return

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stopscams007
post Apr 22 2008, 07:33 PM

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Joined: Jan 2008
QUOTE(rstusa @ Jan 19 2008, 11:25 AM)
Yesterday i just heard my friend said pandan indah got a cafe called island red cafe, like oldtown style restaurant, now got 4 branches in malaysia, they're melaka, penang, puchong & pandan indah. It is doing mlm way like recruiting more member to join then got commission. He said only need to invest RM6000 then enjoy every month 5% fixed guarantee return without recruiting any members.

Any guys here heard of this?
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This is a SCAM !! Such schemes take money from new members to pay the old members. Better tell your friend to pray hard they will not close shop and run away before your friend get back his capital but tell your friend NOT to promote it. You never know when they will close shop. It's not worth losing friends by taking them to such schemes.


Added on April 22, 2008, 7:45 pm
QUOTE(Playbook @ Apr 21 2008, 03:15 PM)
It's not so much MLM, but what they are doing is promoting the offering of shares to public which falls under the prospectus regulations of the Capital Market & Services Act.

Not to worry, I have informed the Securities Commission authorities and they will undertake their own undercover investigations.

My advice, meanwhile, is to avoid such things.
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Keep it up !! Friend, such scams must be stopped !!

I heard this Red Island Cafe is just among 1 of the shop next to the Mid-point shopping centre which is very easy to find and the owner also owns the mobil phone shop next to it.

You know Sunshine Empire also using such scheme ? Sunshine Empire's boss is even smarter. Recently he claimed the Singapore government has freezed their bank account(which of course is not true, they won't be so stupid to keep all monies in the Company account) so they will not pay back the monthly dues to members. They will only pay e-points and members who earned the points are "forced" to work harder to victimise and recruit new members to take their cash to exchange for it. The reason such scams will be 100% sure-success because members who deposited their monies are afraid to lose their monies if the Company closed. Thus, they will never badmouth the Company and instead promote for them.

Even some licenesed MLM Companies are using such schemes.

Nulife from HK is using such scheme and actively recruiting members under their new scheme now. I know who is involved with them too. Can I contact the Securities Commissions authories to inform them ?

This post has been edited by stopscams007: Apr 22 2008, 07:45 PM
stopscams007
post May 1 2008, 10:43 PM

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QUOTE(sooyeshun @ Apr 25 2008, 03:38 AM)
when it sounds so good to be true...
then you might inside the trap.

please tell me what company can get back capital in 20months?
I rather put the money into mutual funds , than risking the 100% with this Red Island thing.
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Please note that even if someone can get back their capital in 20 months or shorter don't mean that anyone or you should believe in it. Don't be surprise that when they last that long, someone or those who joined early are sure to get back their money but at the expense of the newcomers. Those who join last will be caught and lost. Thats how these scams worked.


Added on May 1, 2008, 10:50 pm
QUOTE(cappuccino @ May 1 2008, 08:47 PM)
From the Deed of Mutual Agreement:

7. Further, should the Business be wound-up either voluntarily or upon a Court Order, the proceeds from the sale and/or disposal of the Licensor and the Licensee’s assets, upon being realized, shall be distributed to Shareholders who have not received their first twenty (20) monthly payments, and thence to be followed by the other Shareholders, again in the proportion to the lots held, and shall be treated as if the Shareholders were secured creditors.

It is ok if u dun believe it nw.
Perhaps u can wait until IRC become famous and opened more than 10 outlets in Malaysia and only invest on it.
Everyone must measure the risk & return & if ok with it then only invest.

Since this is another type of investment, I wouldn't say this business will 100% success, what I can help to make IRC work is make sure i recommend more friends to hv their meal there,  smile.gif.
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Why would I want my name to be involved in a Company or ROC knowing very well the scheme is a scam ? When the Company wind up, there will be nothing left, maybe LIABILITIES. You think the master-mind founder/s will leave any much money there ?


Added on May 1, 2008, 10:58 pm
QUOTE(KooHei @ Apr 25 2008, 12:39 PM)
what other business gives similar returns like IRC... 5% fixed...

does anyone here involved in this MLM and successfully gained the 5%?
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Some gave even higher than 5%. Yes, many have received their money successfully BUT you don't want to harm others. These monies are taken from the newcomers. When there is less newcomers and more money to be paid out, the founders will make a report to the police of authorities to go after them so that they can give an excuse for closing shop and run away.


Added on May 1, 2008, 11:06 pmcappuccino,

Why don't you let us know the full marketing and commissions scheme for recruiting new investors ?


QUOTE(cappuccino @ May 1 2008, 05:22 PM)
Hi all, I'm one of the investor in this Island Red Cafe.
First time i heard this, I feel that the concept is awesome. Anyway, I still spent more than 1 month period to do some survey before decided to invest it. I even seek opinion from a lawyer about the legalize & the S&P lawyer letter provided by IRC for the benefit guarantees.
Let me summarize the information i have about this investment concept.

Island Red Cafe (IRC) Global Partnership Franchise Business:

1. Whenever the region accumulated 50 slots investment, an IRC will be opened. 1 slot = RM6000. The investor will be the shareholder of the company & the royal customer and definitely will brings up more customers to the cafe. In short, win win situation for the shareholders and the company.

2. Shareholder's benefits:
i. Fix return RM300/slot (5% of the investment) for 1st and 2nd year = RM7200
  Fix return RM150/slot (2.5% of the investment) for 3rd, 4th & 5th year = RM 5400
ii. RM100/slot food voucher given every month & will be give for total 5 years = RM6000
iii. VIP member discount 15%
iv. Birthday discount 30%

Total up the fix return & food voucher, the return is equal to RM18600, which is around 3x return of ur investment.
Imagine if u invest RM2 millions, ur return are RM6 millions after 5 years,  tongue.gif

After 5 years, no more fix return but company will distribute 49% of the net profit to share among all the shareholders.

3. IRC's strengths:
i. Delicious food with vary choices.
ii. Reasonable price, with 6 star expenses but 3 star fees
iii. Good strategy and business plan, whereby the shareholders can share the company's profit
iv. All the shareholder's benefits are black & white guarantee with S/P & stamping from the lawyer, clarify the shareholder's benefits and protect the shareholder's rights.

4. Currently there are 3 IRC outlets already officially opened & operating.

i. IRC Cheras:
15G, Pandan Indah 1/23 B,
Pandan Indah,
55100 Kuala Lumpur

ii. IRC Puchong:
68, Jalan Puteri 5/1, Puteri Avenue,
Puchong 47100,
Selangor Darul Ehsan

iii. IRC Malacca:
G30,
Plaza Malacca Raya,
75000 Malacca

Feel free to ask me more questions & i'll answer it genuine, smile.gif


Added on May 1, 2008, 5:38 pm
Yes, ur name will be listed inside the company license.
U can check it at the  Register Of Company...


Added on May 1, 2008, 5:48 pm

em, the cafe will only be opened if there is 50 slots or more than that...
so no matter how, the cafe will hv a group of royal customers...
take me as example, i hv RM100 voucher...definitely i will go there to eat frequenctly....
when i go there to eat, i will always ask my family or friends....


Added on May 1, 2008, 5:54 pm

did u try all the food there? different people will hv different taste.
what i can say is the food there is the food i eat every day in other place.
so it give me an idea that, since eat the same thing, y not go bek to the cafe i invested?

drink u may try the island red cafe (hot) or ice blended laici....i prefered this 2... smile.gif
food u may try the penang prawn mee, red sate, island nasi lemak, chicken wings...


Added on May 1, 2008, 6:03 pm

we need to compare the cash generator btw sunshine empire & island red cafe...
the cash generator i mean is the business & method of how the company generator profit...
wat i can see that is the cash generator in sunshine empire haven't completely setup but they need to pay out more return to the investor...

island red cafe already hv 3 branches operating and generating profit...
in the coming may, johor skudai IRC will be opening soon....it will the the largest cafe in malaysia....
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This post has been edited by stopscams007: May 1 2008, 11:06 PM

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