"Investors caught in '$60m ponzi scam' - The Straits Times May 24, 2015
It started out as a sweet deal involving the buying and selling of properties in Singapore's choicest districts, promising around 30 per cent returns.
Now, around 60 investors have come forward to claim they have been duped in what could be a multi-million-dollar ponzi scam. The investors said the alleged mastermind behind the elaborate scheme, Ms Leong Lai Yee, owes investors more than $60 million in capital alone.
They also told The Sunday Times that the woman, who is in her 50s, cut off contact with them last weekend, but not before telling them that their money was gone and she wanted to take her own life.
At least 10 investors have lodged police reports. The police said in response to queries: "It is inappropriate to comment on investigations." The scheme may have started unravelling only last year, but it has been going on some 15 years. Through the period, Ms Leong allegedly hooked more than 100 investors with her promise of a virtually no-risk programme.
Several investors were with the scheme for over 10 years, while the latest joined just last month. Ms Leong, who was known to friends as Adeline, built up trust and goodwill over the years, even inviting investors over for Chinese New Year parties at her well-decorated semi-detached house in Tanah Merah.
There were even people who pulled out early and got their capital and pro-rated returns back," he said, explaining why no alarm bells went off for so many years. It appeared to be only in the past few years that things started going wrong and Ms Leong tried to raise more funds by offering higher returns of 35 per cent for a six-month contract. This bears the hallmark of a ponzi scheme, in which fresh funds from new investors are used to pay those who joined earlier.
Some of them later received a letter from Ms Leong in which she said she would kill herself. She and her husband have been uncontactable since, investors said.
"This is not a Korean drama, it is real," a certain Mr Goh said ruefully. "There are real people, real families involved.""
Some of my friends said the root cause of this sage is: greed. To certain extent it is. Yet, to put it all to 'greed' may be overly simplified.
Lessons for me are:
1. it probably started off with 'leveraging the rising properties market' and the scheme did make lots of money for the investors in the initial phases. Otherwise they would not have continued and also 'referred' the 'good thing' to their families, friends and associates. Of course, been given a cut of the fund for the referral helped!;
2. as with all 'too good to be true' good thing, there is a turning point. Can anyone call it perfectly? Definitely NOT as the one who wants to wait till the perfect moment normally is the one left carrying the can or without a seat when the merry-go-round music stopped! Many people have made tons of money from speculating and flipping properties in Singapore and other cities and countries. Many people have LOST tons of money too at the receiving end of the same stick! YET, the media and the press are forgetful about the disasters and like the 'success stories';
3. this brings to mind another party in this 'make money from properties' seminar by some gurus advertising in Singapore news papers. I am not sure if Ms Adeline is ONE of those advertised gurus who can 'make you a millionaire with a very low capital outlay dealing in properties'. Of course, IF the properties are overseas ones, the AUTHORITY had recently started to 'examine' inflated claims in advertisement and promotional materials closer! Maybe even banning outright some of these 'standard practices'!!
ALL TOLD, people have to take responsibilities for their actions. In 'scam' like this, if you smarter, you will take the money early and exit. In this case, you are the winner regardless of the ultimate demise of the investment scheme, maybe before it become 'Ponzi-like' as the need to find fresh money to pay the existing investors become acute. The authority can pull its weight too but at least curbing inflated claims by 'investment advisors and so-called gurus'!
While it is NOT Korean drama, it has happened. So, hopefully these investors are losing some spare cash and not their life saving; and that they can still look after themselves with a lower expectation of daily expenses.
It started out as a sweet deal involving the buying and selling of properties in Singapore's choicest districts, promising around 30 per cent returns.
Now, around 60 investors have come forward to claim they have been duped in what could be a multi-million-dollar ponzi scam. The investors said the alleged mastermind behind the elaborate scheme, Ms Leong Lai Yee, owes investors more than $60 million in capital alone.
They also told The Sunday Times that the woman, who is in her 50s, cut off contact with them last weekend, but not before telling them that their money was gone and she wanted to take her own life.
At least 10 investors have lodged police reports. The police said in response to queries: "It is inappropriate to comment on investigations." The scheme may have started unravelling only last year, but it has been going on some 15 years. Through the period, Ms Leong allegedly hooked more than 100 investors with her promise of a virtually no-risk programme.
Several investors were with the scheme for over 10 years, while the latest joined just last month. Ms Leong, who was known to friends as Adeline, built up trust and goodwill over the years, even inviting investors over for Chinese New Year parties at her well-decorated semi-detached house in Tanah Merah.
There were even people who pulled out early and got their capital and pro-rated returns back," he said, explaining why no alarm bells went off for so many years. It appeared to be only in the past few years that things started going wrong and Ms Leong tried to raise more funds by offering higher returns of 35 per cent for a six-month contract. This bears the hallmark of a ponzi scheme, in which fresh funds from new investors are used to pay those who joined earlier.
Some of them later received a letter from Ms Leong in which she said she would kill herself. She and her husband have been uncontactable since, investors said.
"This is not a Korean drama, it is real," a certain Mr Goh said ruefully. "There are real people, real families involved.""
Some of my friends said the root cause of this sage is: greed. To certain extent it is. Yet, to put it all to 'greed' may be overly simplified.
Lessons for me are:
1. it probably started off with 'leveraging the rising properties market' and the scheme did make lots of money for the investors in the initial phases. Otherwise they would not have continued and also 'referred' the 'good thing' to their families, friends and associates. Of course, been given a cut of the fund for the referral helped!;
2. as with all 'too good to be true' good thing, there is a turning point. Can anyone call it perfectly? Definitely NOT as the one who wants to wait till the perfect moment normally is the one left carrying the can or without a seat when the merry-go-round music stopped! Many people have made tons of money from speculating and flipping properties in Singapore and other cities and countries. Many people have LOST tons of money too at the receiving end of the same stick! YET, the media and the press are forgetful about the disasters and like the 'success stories';
3. this brings to mind another party in this 'make money from properties' seminar by some gurus advertising in Singapore news papers. I am not sure if Ms Adeline is ONE of those advertised gurus who can 'make you a millionaire with a very low capital outlay dealing in properties'. Of course, IF the properties are overseas ones, the AUTHORITY had recently started to 'examine' inflated claims in advertisement and promotional materials closer! Maybe even banning outright some of these 'standard practices'!!
ALL TOLD, people have to take responsibilities for their actions. In 'scam' like this, if you smarter, you will take the money early and exit. In this case, you are the winner regardless of the ultimate demise of the investment scheme, maybe before it become 'Ponzi-like' as the need to find fresh money to pay the existing investors become acute. The authority can pull its weight too but at least curbing inflated claims by 'investment advisors and so-called gurus'!
While it is NOT Korean drama, it has happened. So, hopefully these investors are losing some spare cash and not their life saving; and that they can still look after themselves with a lower expectation of daily expenses.
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