QUOTE(chatwarrior @ Aug 13 2008, 02:53 PM)
You are right. If you do some calculations, such scheme can NEVER sustain too long. It must close at a point when they are no more people joining in. The day comes when they have to pay back every investor every month and less money to collect from new investors, they will run away or strop the scheme. Such schemes work only in the beginning when monies collected from the new members are more than they need to pay the old members.
The profit made from the cafe is definitely not enough to pay back the investors,. It is just a smokescreen for the scheme.
BTW, it is not a matter of legitimate or not in such schemes. All businesses in Malaysia are legal UNTIL they are being stopped. By argueing on the legality of the scheme, the operators will take advantage of it to promote. You know what they have been telling their propects ?
"If this scheme is not legal, how could we get a business license ?"
"You think Sunway Pyramid which is so big and reputable will lease out to an illegal buiusiness ?"
"Some people already notified the SC, if we are illegal, do you think we are still here ?"
So the point is not whether it is legal or not. The point is how long will it last and who will be the victims.
Mobil Wallet, SwissCash, Sunshine Empire and Seaweek venture have all disappeared or have their conditions changed so that they need not pay the investors anymore.
Added on August 13, 2008, 3:18 pmI begin to wonder if you are actually helping him to promote or not.
I think fyire did a better job.
LOL, Me helping him to promote? you must be joking.
One of moderator job is to work out and guide people into the discussion points.
I just want work out something on this thread, don't want to see this thread become personal confrontation. It won't benefit to all. By asking those question, people will find out more the truth behind it, right?
The point I always stress of the legality side, is that any company can be a legal registered company (it is not hard to set up a legal compay), but it is illegal to take in money from public for investment without BNM/Securities Commission approval. Still in term of company, it is legal but running on public money without approval, then this part is illegal.
There is a list of company in Malaysia that can offer public for investment, others than those, it is deem illegal to do so in Malaysia.
There is the distinct difference and the point I want to make and always stress on legal part. Sunshine empire, Swisscash and those scam offer public investment scheme never ever been in the SC approval list before.
This post has been edited by cherroy: Aug 13 2008, 03:50 PM