Bangkok DSI Acts On Billion Baht Pyramid Schemes

[webfact]

DSI acts on billion baht pyramid schemes

By By Piyanuch Thamnukasetchai

The Nation

The Department of Special Investigation (DSI) yesterday filed separate cases against two pyramid schemes that allegedly duped people to invest money through websites, causing losses of billions of baht.

Piyawat Kingket, head of DSI special criminal cases division, said the DSI had concluded its investigations and passed them on for the public prosecutors’ consideration on whether to file the cases in court.

Firstly Colony Invest had advertised on www.colonyinvest.net and www.colonyinvest.com inviting people to invest at least Bt3,800 with the company. After the investment money was wired into the company’s system, the investors did not have to do anything and could check their dividends around the clock on the website.

The company claimed its headquarters was in Rochester City, New York State, and its financial business was in six fields including Forex trading, hotels and resorts, and property development.

DSI investigation found these websites had no link to the USAbased company but claimed its name only to obtain public credibility. He said hundreds of people were duped, causing damage worth billions of baht.

The other case was a scheme by Blue Ocean Siam that invited people via www.mohart.com, www.blueoceansiam.com and www.webinvester.com, to invest money in Moh Art Dot Com, whose president was identified as Tharawat Phermphokhasap, for the website space renting business. He said 238 people were lured into the scheme and wired money, totalling Bt63 million, to Tharawat’s bank accounts.

Piyawat urged the public to beware similar pyramid schemes which often promised high returns.

-- The Nation 2010-11-11

[Northman061]

So only after 63 BILLION Baht was "invested" was the web site found not to be linked to the real US Markets?

If they had said something anti monarchist or anti Government, they would have been closed in minutes.

Makes you wonder where and why the Governments assests are being used i think.

[AsiaCheese]

There must be a few blue-eyed people with real fat wallets around in Thailand. In the 2nd scheme, the average "investment" runs to THB 264,700 per pair of blue eyes.

There's no number for the first scheme ("billions"), so as it's the plural, let's assume for argument's sake we're talking THB 2 bln. With the minimum "investment" amount, more than half a million people would have invested (???).

Come off it. Someone's kid played with the calculator at the newspaper (again). But no doubt: Thailand is prime grazing ground for GRQ (get rich quick) schemes...

[caughtintheact]

Aside from the fact that the Nation's article seems to have a number of errors, like millions vs. billions? If each investor put in B3800 it would take 16,578,947 investors to get to 63 billion baht, and 16,579 to get to 63 million baht.

In any event, don't blame the government. When "investing" money, the owner of the money is responsible for conducting due diligence - BEFORE putting money into anything. Your money, your risk. In a pyramid scheme the early investors usually get a return, and thus will not complain. The early investors become the "credibility" for other "investors", who eventually lose their money.

There is no law against investing money, so as far as I know, the government cannot do anything until there are complaints. When people see that their money appears to be making money, they do not complain. Since the minimum required investment is relatively small at B3800, and the returns shown on the web site are likely to be much higher than any market rates, why should anyone complain until they are pretty sure that the company will not pay them per the terms of the agreement?

It makes no difference whether you are investing B3800 or B3,800,000. Failure to act responsibly, failure to investigate the company and the people behind the company is not the "fault" of the government. Pyramid and other scams are only profitable if they find greedy, gullible people. The "investors" might get lucky and get some money back, but usually they do not.

[Lumumba]

I put about 19500 baht in colonyinvest and i got about 60000 baht in a bout 3 months, well I just took it as beer money, i was so sad when they stopped paying.

I was tempted to deposit a large sum but I did nt, I looked at their website, and the only thought that came to my mind was either they were minting the cash themselves or stealing from Madoff to make me happy.

[DoctorG]

I do not know the details of this investment but it appears to be more of a ponzi scheme than a pyramid scheme. No real difference I suppose. You still can lose your money.

[BlackJack]

i dont know why people invest in these things when you can make 60% in one of the Thai Bank funds

I suppose people just dont do their homework

[supaprik]

So only after 63 BILLION Baht was "invested" was the web site found not to be linked to the real US Markets?

If they had said something anti monarchist or anti Government, they would have been closed in minutes.

Makes you wonder where and why the Governments assests are being used i think.

An excellent point....AMAZING THAILAND as usual

[asiawatcher]

Pyramid schemes seem to get tagged onto anything fraudulent but obtaining money under false pretenses is the correct deal here as they are not propagating "take from Peter to give Paul" - a true pyramid. DSI and whoever else should burn these people but chances are they are not within Thailand, only another website to beware of. Amazing how they can block porn but not fraud!

[Rabid]

i dont know why people invest in these things when you can make 60% in one of the Thai Bank funds

I suppose people just dont do their homework

You can make 60% in one of the Thai Bank funds???

Please explain.

Time to retire!

[newtronbom]

Aside from the fact that the Nation's article seems to have a number of errors, like millions vs. billions? If each investor put in B3800 it would take 16,578,947 investors to get to 63 billion baht, and 16,579 to get to 63 million baht.

In any event, don't blame the government. When "investing" money, the owner of the money is responsible for conducting due diligence - BEFORE putting money into anything. Your money, your risk. In a pyramid scheme the early investors usually get a return, and thus will not complain. The early investors become the "credibility" for other "investors", who eventually lose their money.

There is no law against investing money, so as far as I know, the government cannot do anything until there are complaints. When people see that their money appears to be making money, they do not complain. Since the minimum required investment is relatively small at B3800, and the returns shown on the web site are likely to be much higher than any market rates, why should anyone complain until they are pretty sure that the company will not pay them per the terms of the agreement?

It makes no difference whether you are investing B3800 or B3,800,000. Failure to act responsibly, failure to investigate the company and the people behind the company is not the "fault" of the government. Pyramid and other scams are only profitable if they find greedy, gullible people. The "investors" might get lucky and get some money back, but usually they do not.

I totally agree with your accurate post. Before anyone thinks about how much to invest, or even begins to start calculating profit not yet accrued, check, check, check. Online is an easy place to start looking, but it is also the easiest place to fake. Doing as much "real world" digging as possible, is much more important for any claimed "high profit" returns. It is quite possible, to get money out of these "rips", but only if one gets in first on the ground so to speak and does not put in a huge amount of money that will warn them off. Lumumba claims this in his post. I too have had some luck this way, but a good rule of thumb(which seems obvious but people will be greedy and ignore it) is that the higher the interest rate offered, the more likely you will be to get ripped, or even lose the money in an honest venture, which is bound by the same laws of return/risk!! If either online or real world digging shows the scheme has been running for more than a few weeks - at most 6 is my own rule(the number of investors can lengthen, or shorten this rule), over that I would forget it. Look at the join date of the first few so called success's, who they shine the light on, "as proof" of their claims if possible. Call these "winners" or email them saying how you don't want to start too early, so the "slow start/low return" is over etc....whatever, but if you can't spin a bit of decent/believable bullshit to convince these "cons" you are real, you shouldn't even begin playing this game - you can always correct any inaccuracies you claim or made by mistake later, if the scheme proves to be genuine. 95% are scams and the other 5% are too high risk to try for most. There are usually some such details regarding the winner, join date, gender, age etc posted along with the people who really have been paid out, as they want them to look to you, as Kosher as poss. Of course some of these "winners??" will be involved in the scam itself - though usually not too many cause of the "greed factor" in the scammers too. I have lost money a couple of times taking this gamble, when I either knew or strongly suspected a fraud. I only blame myself. You need to find out "how to get good info" for yourself, then decide if the risk is worth it. Don't ever invest money that you can not afford to lose. That's one of the most common reasons that gamblers go under or even worse, get crippled or shot. Never gamble or even invest, if you are desperate. I'm sure many posters are yawning and bored shtless by the so obvious points I have made here, but as obvious as they seem to those posters,many here, are people who will still forget - choose to ignore these "obvious" rules when they are either greedy or desperate or whatever. Just hope some if not all the people who need this advice, read this post through. PS: I would love a "PM" from the poster who claims he is getting 60% from a bank(any bank), to tell me which bank it is....Cheers. thebom.

Edited November 11, 2010 by newtronbom

[newtronbom]

Pyramid schemes seem to get tagged onto anything fraudulent but obtaining money under false pretenses is the correct deal here as they are not propagating "take from Peter to give Paul" - a true pyramid. DSI and whoever else should burn these people but chances are they are not within Thailand, only another website to beware of. Amazing how they can block porn but not fraud!

It is also amazing to me, how some person can be caught with a handful of pills and receive 20 odd years to life in many cases, where as the scum who literally take peoples lives away from them in many cases by all these scams(many elderly get stung for all their "life savings), are usually handed down a few years inside to 5 or so, if that. Then this injustice is compounded by the court in its generosity, by whacking a huge, pointless, unpayable fine on the perp, ensuring a return to crime like this or drugs on release to pay for it. What am I missing here? Sure someone will enlighten me.

[phiphidon]

But no one knows which way the DSI will go as this earlier case shows

"DSI clamps down on Best 59 pyramid scheme

By The Nation

Published on January 21, 2010

The Department of Special Investigation (DSI) has frozen all of Best 59's bank accounts for selling products, under the brand of Poodang, through a pyramidscheme.

The Office of Consumer Protection Board (OCPB) has also revoked the company's licence, while the DSI is investigatingall financial transactions. The agency has also detained a Best 59 employee.

"There is solid evidence showing that Best 59 violated the Direct Sales Act," Suwit Wijitsopa, chief of OCPB's direct sales and marketing division said yesterday.He explained that such an offence was punishable by both fines and jail terms.

Best 59 is in trouble for allegedly offering incentives to members for attracting new members and selling products other than those reported to the authorities - two reasonswhy the case comes under DSI's jurisdiction.

"It is about public fraud," Suwit said."

8 months later and a change of personnel at the DSI and this happens;

"DSI admits dropping pyramid scheme case, while another goes to court

By The Nation

Published on September 1, 2010

The highly publicised case against Best 59, which allegedly operated a pyramid scheme via Poodang Kitozan fertiliser products, would not be going to court,Department of Special Investigation (DSI) chief Tharit Pengdit said yesterday.

Tharit insisted there was no lobbying to prevent the case going to court. But a committee assigned by DSI deputy head Narat Sawetanant studiedthe case after investigators agreed to present evidence to public prosecutors - and it ruled that the Poodaeng scheme did not fall within the parameters of defrauding the public.

Given that conclusion, and previous Supreme Court rulings and appeals from the accused for justice, Tharit said he then notified the public prosecutorabout the DSI decision not to pursue the case in court.

Tharit declined to comment on criticism written on Facebook by a DSI investigator about four cases, including Poodaeng, not being taken on courtafter investigators had gathered evidence against various people."

These comments having been written by one of the investigators who recommended the charges against the Democrat Party for allegedly receiving illegal donations, case still to be heard.

[astral]

Anyone remember Madame Chamoy Thipyaso, (Chamoy Kamoy) back in the 80's.

[Estrada]

i dont know why people invest in these things when you can make 60% in one of the Thai Bank funds

I suppose people just dont do their homework

You can make 60% in one of the Thai Bank funds???

Please explain.

Time to retire!

These funds are run by the Thai Banks such as Bangkok Bank under Bualuang Securities which invests in a portfolio of shares or other instruments. The BBL funds have made over 60% in a year (beats the 1% in the BBL savings account). Personally I look after my own investments in the Thai Stock Exchange. I have an online KIM ENG investment broker account in real time. I have made 400% so far since May last year. And yes I have retired. I hope this explains it.

Edited November 11, 2010 by Estrada

[newtronbom]

i dont know why people invest in these things when you can make 60% in one of the Thai Bank funds

I suppose people just dont do their homework

You can make 60% in one of the Thai Bank funds???

Please explain.

Time to retire!

These funds are run by the Thai Banks such as Bangkok Bank under Bualuang Securities which invests in a portfolio of shares or other instruments. The BBL funds have made over 60% in a year (beats the 1% in the BBL savings account). Personally I look after my own investments in the Thai Stock Exchange. I have an online KIM ENG investment broker account in real time. I have made 400% so far since May last year. And yes I have retired. I hope this explains it.

Wow. Some of the rates quoted in these posts....are incredible. I am in the wrong sector it seems.Although the way the calculation is made, like when you think you got a cheap loan, could just have bearing on this me thinks.

Edited November 12, 2010 by newtronbom