I spoke to an investor in a land banking product. He has invested for nearly two years and is still waiting for his invested sum to be returned to him. He has not even collected the interest payment of 12.5%. He has since lost his job and his money is tied up in this investment. He has been promised a few times that the company is finalising the sale of the land and expects to repay the investment in the near future. It never materialised but he still remained hopeful and naive.
He is reluctant to lodge a complain with the authority or talk to the newspaper as it might cause the company to collapse. He still harboured the hope that his money will be repaid to him in the future. He even hoped that the company would be successful in the sales to new investors, so that they can collect the money to repay him. This is a selfish attitude, which reflects a shameful character of many Singaporeans.
What this investor does not realise is that there is virtually no chance of getting approval to develop the land or for the land being sold at a profit. The company tells a false story to keep the naive investors from taking action to enforce their rights. As time goes by, their chance of recovering their invested money will diminish, and it will soon be too late. Even if the company is able to get new funds, they will not repay the naive and weak investors. They will just cook up another excuse to give false hope.
If you are caught in this situation and you wish to meet other investors in the same situation, give your particulars here.
Tuesday, March 16, 2010
Trapped in a bad investment
Note: If you are trapped in this type of investment and wish to meet other investors in similar situation, give your details HERE.
A company selling foreign land plots and other products gave a put option to the investor to sell back the product at the end of 6 months with interest at 12.5%. Many investors invested on this product on the basis of the put option. At the end of 6 months, the investor exercise the put option, but the company refused to honor it. They gave many excuses and did not pay back the money as promised. In the meantime, the company continued to sell similar products to many new investors.
The investors were at a loss. Some engaged a lawyer to take legal action, but it is taking a long time, is costly and uncertain. Some complained to the authority, but were told that it is a civil matter for which they have to engage a lawyer. What is the best way for the investor to act now?
Can the authority stand by and do nothing, while more investors are being trapped in this type of investment?
Tan Kin Lian
A company selling foreign land plots and other products gave a put option to the investor to sell back the product at the end of 6 months with interest at 12.5%. Many investors invested on this product on the basis of the put option. At the end of 6 months, the investor exercise the put option, but the company refused to honor it. They gave many excuses and did not pay back the money as promised. In the meantime, the company continued to sell similar products to many new investors.
The investors were at a loss. Some engaged a lawyer to take legal action, but it is taking a long time, is costly and uncertain. Some complained to the authority, but were told that it is a civil matter for which they have to engage a lawyer. What is the best way for the investor to act now?
Can the authority stand by and do nothing, while more investors are being trapped in this type of investment?
Tan Kin Lian
Singapore's Big Bet is about to Pay Off
Here is an optimistic report about the impact of the two integrated resort on tourism and economic growth for Singapore.
Monday, March 15, 2010
Leaders should address important issues
For many years since its independence, Singapore has been a model of excellence in governance. However, the situation has grown to be quite pathetic during in recent years. Here are some of the problems:
a) rampant cheating, e.g. land banking, toxic products
b) escalating cost of living and housing prices
c) stagnant wages, stressful and poor quality of life
d) wastefulness, such as the episode on payTV platforms
It is time for our leaders to address these issues.
Tan Kin Lian
a) rampant cheating, e.g. land banking, toxic products
b) escalating cost of living and housing prices
c) stagnant wages, stressful and poor quality of life
d) wastefulness, such as the episode on payTV platforms
It is time for our leaders to address these issues.
Tan Kin Lian
Unwillingness to take responsibility
There is a company that advertises regularly on television that sells land banking and other products.
For the past two years, they have been offering their products to investors with an option for the purchaser to cash out at the end of 6 months with interest at 12.5%. On maturity, they find many excuses to delay the payment and kept some investors waiting for more than a year.
Several investors had lodged a complaint with the Monetary Authority of Singapore and the Commercial Affairs Department, but were told to engage their own lawyer on this matter.
This company continued its mode of operation and more unwary investors are being caught in this type of investment. I was told that several millions of dollars are being collected each month. The company was even able to produce a certificate of "Singapore Quality" issued by Spring Singapore.
Some investors asked me, "Mr. Tan, why is the Government not willing to act on this matter, when many ordinary people have complained about being cheated? Does this company have strong connections with certain people in the Government?". I replied that this is not likely to be the reason.
The likely reason is that one agency will point finger that it is the responsibility of another agency, and nobody wishes to take responsibility to act. This is quite typical of Singapore and is a shameful state of affairs.
Tan Kin Lian
For the past two years, they have been offering their products to investors with an option for the purchaser to cash out at the end of 6 months with interest at 12.5%. On maturity, they find many excuses to delay the payment and kept some investors waiting for more than a year.
Several investors had lodged a complaint with the Monetary Authority of Singapore and the Commercial Affairs Department, but were told to engage their own lawyer on this matter.
This company continued its mode of operation and more unwary investors are being caught in this type of investment. I was told that several millions of dollars are being collected each month. The company was even able to produce a certificate of "Singapore Quality" issued by Spring Singapore.
Some investors asked me, "Mr. Tan, why is the Government not willing to act on this matter, when many ordinary people have complained about being cheated? Does this company have strong connections with certain people in the Government?". I replied that this is not likely to be the reason.
The likely reason is that one agency will point finger that it is the responsibility of another agency, and nobody wishes to take responsibility to act. This is quite typical of Singapore and is a shameful state of affairs.
Tan Kin Lian
Professional fees and moral values
Several months ago, I received a letter from a big legal firm in Singapore threatening to take legal action against me for posting an article in my blog about a land banking company. The article was reproduced from the website of a UK newspaper. The article made several allegations about the operations of this land banking company that operates in Singapore.
The letter from the lawyer asked me to prove the facts that were contained in my blog. I asked if their client had written to the UK newspaper to correct the facts, but they refused to answer my question and continued to threaten and harass me.
When I related this matter to a friend, she asked the question, "Does this reputable legal firm feel ashamed of acting for a company that goes about to cheat the public?" Some time later, the legal firm suddenly dropped the matter for reasons that are not clear to me.
I now read a report about Lehman Brothers and the large fees earned by their auditors and lawyers in helping to hide the facts about the financial situation of the company during its last few months. Are the fees for these reputable firms more important than moral and ethical values?
Tan Kin Lian
The letter from the lawyer asked me to prove the facts that were contained in my blog. I asked if their client had written to the UK newspaper to correct the facts, but they refused to answer my question and continued to threaten and harass me.
When I related this matter to a friend, she asked the question, "Does this reputable legal firm feel ashamed of acting for a company that goes about to cheat the public?" Some time later, the legal firm suddenly dropped the matter for reasons that are not clear to me.
I now read a report about Lehman Brothers and the large fees earned by their auditors and lawyers in helping to hide the facts about the financial situation of the company during its last few months. Are the fees for these reputable firms more important than moral and ethical values?
Tan Kin Lian
Coffee shop and the bank
I had a bowl of wanton noodle for $2.50 at a coffee shop. I looked at the ingredients that make up this meal - noodle, soup, meat, chili and more. I thought about at the labor that went into the preparation and the rental that has to be paid for the stall. How can the stall holder survive on the profit margin that goes into this bowl of noodles?
I then thought about the charge of $50 that my bank imposes on a late payment on a credit card and the charge of $80 to transfer a small sum of money. How much does it cost the bank to handle each transaction? It seems to take less labor that making a bowl of noodle.
The banks, which makes billions of dollars of profit a year, forget that many people in Singapore have to work 8 hours a day to earn $50, which is the amount that they charge for a small banking service. Perhaps our Government, which gives the licence to the bank to operate the essential banking service, also forgets this point.
We cannot rely on the free market to determine the banking fees, as there is virtually no competition and the banks are happy to operate a cartel on these excessive charges. The Government has to regulate the fees charged by banks for essential banking services to be at a reasonable level.
Tan Kin Lian
I then thought about the charge of $50 that my bank imposes on a late payment on a credit card and the charge of $80 to transfer a small sum of money. How much does it cost the bank to handle each transaction? It seems to take less labor that making a bowl of noodle.
The banks, which makes billions of dollars of profit a year, forget that many people in Singapore have to work 8 hours a day to earn $50, which is the amount that they charge for a small banking service. Perhaps our Government, which gives the licence to the bank to operate the essential banking service, also forgets this point.
We cannot rely on the free market to determine the banking fees, as there is virtually no competition and the banks are happy to operate a cartel on these excessive charges. The Government has to regulate the fees charged by banks for essential banking services to be at a reasonable level.
Tan Kin Lian
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