Investigation of fraudulent practices

Hi Kin Lian,

The Straits Times Forum publised a letter entitled "Should MAS Act". A week later, the MAS gave a short reply which was off tangent to the key issue. The MAS said that the jurisdications are different.

In the case of the US, the SEC filed charges of malpractices and fraud  against Goldman Sach. It was not about breaching regulations of the US jurisdiction, but was about fraudulent practices and non-disclosures. Fraud is fraud regardless of the jurisdiction in question.

Resources and power to investigate and prove these are way above the capabilities any individual or group of individuals possess. Investigations with access to confidential documents can only be done successfully, just like in the US, with the direct involvement of the authorities.

There are circumstantial evidence to warrant investigations in the US. Goldman Sach in its defence was also reported (in ST's May 2) to have alleged that other US investments banks were also doing similar things, not just it alone. That proves the point of how predatorial these banks were back then and operating in packs.

How can MAS totally ignore this course of action of investigation when even countries in Europe may also be following in the US footsteps.

Of course, entities like Morgan Stanley are innocent until proven guilty. But how can they ever be proven guility if MAS refuses to investigate. What's in MAS's minds and agenda is anyone's guess. But it will be a Himalayan task to attempt a private class action suit in the US on transactions booked in Singapore without the sympathetic support and empowerment of local authorities.

Abuse of car horn

In some cities, it is an offense to use the car horn. except in an emergency or to avoid an accident. The abuse of the horn disturbs the tranquility and affects other car drivers and the public. Car drivers in Singapore have a bad habit of using the horn to express their anger. I hope that this is treated as a public nuisance.

Restructuring of bankrupt companies

Large fees are paid to accountants, lawyers and consultants to handle the restructuring of bankrupt companies. They have to be borne by the shareholders who already lost so much value in their investments. Read this report.

My comment
This is clearly excessive, but nobody seems to care. We are in a world of greed and immorality.

Give way on the road

Last Friday, I was driving along the Central Expressway. There were at least five occasions when the vehicle in front of me signalled the intention to cut into my lane. I slowed down and let them passed. It does not matter if they were bad drivers or could have signalled earlier.

Refund of Pinnacle Notes

Two years ago, a finance company sold $40,000 in a Pinnacle Notes to my wife. She brought back the sales brochure and felt convinced that it was a good investment. She believed in the assurances given by the finance company. She was told that many people rushed to buy the product which would be sold out soon.

I saw the wording on the brochure, "You stand to lose all of the amount that you have invested". I read the brochure for more details, but was told that they are explained in the prospectus and other documents (not made available to my wife). I said, "What kind of rubbish is this?".

At that time, I had a distrust of all structured products as my wife had earlier invested in two series of capital guaranteed  products and got back just 2% after investing for 5 years (when a safe government bond would have earned ber 15% at that time).

I told my wife to cancel the investment and ask the finance company to return the money to her. She said that it was not possible, as she had been told that the investment cannot be rolled back. I told my wife to tell the finance company that if they did not refund the money, I would fight them on a matter of principle.

My wife got back her $40,000. If not, she would have lost nearly all of her invested money as the notes are now worthless.

Lesson: It is important for Singaporeans to think for themselves and be aware of their legal and human rights.

Tan Kin Lian

Two sides to a story

Read this article.

My comment
It is better for the government minister to be above the fray and not be defensive about people presenting the other side. By acknowleding that there is another side, the minister will set the environment for a more open society in Singapore. I continue to be hopeful that our leaders have the integrity and intelligence to understand my message.

Online sale of my books

I was surprised that about 1,000 copies of my Intelligence Quiz Vol 3 has been sold at the bookstores. This is much better than I expected. My online sale of this book has been rather slow. It seems that Singaporeans are still quite traditional in their method of buying. Perhaps, it is quite troublesome to pay through the interent? I allow payment by internet banking, Paypal, ATM and by cheque.

Some people describe the Intelligence Quiz as the "word" version of Sudoku. There is some resemblance. So, Sudoku fans may enjoy this puzzle.

I sold 1,000 copies of the Financial Planning book at the bookstores and about 200 copies through my online shop. In this case, the online sales is doing quite well.

The tangram book is available now and can be ordered online. It will be available in the bookstores by 15 May.

Order books online.

Tan Kin Lian