| Azlan Othman |
BRUNEIANS continue to lose money in forex trading schemes even after repeated warnings from authorities against associating with such speculative operations.
Depositors from the Sultanate are among customers of a money game operator which is currently in dire straits as a result of heavy losses in foreign exchange trading, Malaysian media reported yesterday.
Other depositors come from countries like Indonesia, the Philippines, Singapore, Cambodia, Australia and Hong Kong.
The Penang-based company, the fourth such game operator in the state to come under the spotlight recently, took a bad hit after the pound dived following the shocking British election results on Friday.
“Two of our top fund managers suffered about 95 per cent losses this week to the tune of several hundred million Malaysian ringgits. This is a huge blow to the company,” said a supporter of the company.
Although his upline had told him to wait for further announcements from the company, he was not convinced the mess could be sorted out that easily.
“Things sure don’t look good. I have about RM50,000 in the scheme since two years ago,” he said.
The company, which was started in 2012, has the largest base in Malaysia at 55 per cent, followed by China at 19 per cent.
Depositors from the Sultanate are among customers of a Penang-based company which is currently in dire straits as a result of heavy losses in forex trading. – MUIZ MATDANI
The minimum investment is $100 (RM420) with the promise of a passive monthly return of between 10 per cent and 30 per cent.
Members can earn a five per cent referral commission on funds invested by their recruits and opt for pips rebate or profit sharing.
A 51-year-old businesswoman from Tanjong Bungah said she invested about RM220,000 in the scheme last year.
“I started with RM50,000 last January and topped up the amount gradually,” she said.
Early this year, the company announced on its website that it was in partnership with English Premier League club, West Bromwich Albion FC, she said.
“It has been around for five years and was doing so well before this.
“Many people, including a lot of my friends, will get burnt if the company goes bust,” she said.
This is a potential fourth setback in money game schemes for her after JJPTR, Richway Global Venture and CYL collapsed one by one.
“The companies collapsed in just less than two months. It’s like a chain reaction,” she said.
A self-employed victim said he is keeping his fingers crossed that everything would be fine. He first invested $1,000 (RM4,200) in January, and earned $300 (RM1,260) by March. It was then that he topped up another $1,000.
“The scheme looks convincing. We can even set our limit of investment losses by percentage. For example, if your investment is RM4,200 and you set 30 per cent as the limit, then the most you stand to lose is only RM1,260. And the fund managers did really well, until recently when the losses came up to about 90 per cent. I just hope we do not have to bear the losses. Just pay us the balance based on the limit of losses that we set,” he said.
Autoriti Monetari Brunei Darussalam (AMBD) regularly reminds the public to be careful when participating in any financial schemes or transactions. In a recent statement, AMBD advised them not to be easily enticed by any investment advertisements and to conduct due diligence and check the legitimacy of such individuals/companies as well as the inherent risks associated before agreeing into any financial transactions.
If the company is based outside Brunei Darussalam, investors need to check with the overseas authorities about its credentials, urged the financial regulator.
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