Potential scam; savings lost?

[HOOD Robin]

another example of GREED..... if your friend (or was it you ? ) sees something "unrealistic" and "too good to be true", why you dont make your due dilligence for 1000% first ?

[Jonmarleesco]

There's no indication of just how much return your friend was promised, but the old adage, Let the Buyer Beware, exists for a reason. Why do people never learn? If it sounds too good to be true, it probably is. Is it any wonder the likes of Madoff manage to do what they do?

[Showbags]

So whom ever is in control of the money for X % has promised XX % return and has loaned it out shark style for XXX % return and is waiting to get his cash, or take possession of the land he probably took as collateral for the loan and/or cannot sell it.

[how241]

Check out this Bank of Thailand, Financial Consumer Protection Center web page. Link

There is also a link on above page showing a list of financial products/services above Center can deal with since the products/services on the list are governed by Bank of Thailand regulations. If your friend's institution is not on the list then that institution is probably an unregulated financial company, or worst yet a scam.

Good info. Thank you

[DGIE]

Thank you PIB, that is a start. He was the told the money was "borrowed" and would be repaid. I personally believe the cooperative there may have been borrowing, theft or investments gone sour with the recent downturn in the SET. Being a farang, I want an investigation by the authorities to be sure everything is on the up and up. Names, who is accountable, legally responsible, etc. Hopefully the BOT has some oversight in this situation.

You are posting like you lost your money?

Why should be you to have it investigated? Not your friend?

[ThaiBob]

Thaibob

I would suggest that your friend get in touch with others that use the service and find out what they re doing. He may want to get in touch with the police or the amphur to see what they know.

i would also advise your friend to talk to a lawyer so that he can start any legal proceedings that are possible. I am sure he is not the only person so if a group of them hire the same lawyer they can cut their costs and get answers quickly.

Does your friend have any papers from the lender to outline anything or make any statements. They would also help.

I live in the area where is this business located?

There are about six Thai friends involved. They all have savings account passbooks just like you get at a regular bank. The coop pays interest every June. The group will contact the Consumer Protection Office on the BOT website. Based on the answers they get, they may hire a lawyer. The coop is located by the DMC temple. Enter the temple grounds off Klong Luang, and go right around the roundabout to the large three story business complex to the east of the main temple.

[barmatt]

In other words, a chit fund.

Most chit funds end when one of it's members takes the money and runs.

Thats called a Shit fund

[Beetlejuice]

Sorry to say but I`m afraid your friend can kiss his money goodbye.

With many of these get rich quick schemes the usually ploy is to declare the company bankrupt and with the company also goes their investors money.

These companies are not covered by the Bank of Thailand, Financial Consumer Protection, the same as Insurance company savings schemes. Or in other words, those who invest money with these companies do so at their own risk and discretion, it`s a gamble, some ya win, some ya lose.

[DGIE]

Thank you PIB, that is a start. He was the told the money was "borrowed" and would be repaid. I personally believe the cooperative there may have been borrowing, theft or investments gone sour with the recent downturn in the SET. Being a farang, I want an investigation by the authorities to be sure everything is on the up and up. Names, who is accountable, legally responsible, etc. Hopefully the BOT has some oversight in this situation.

"I personally believe the cooperative there may have been borrowing, theft or investments gone sour with the recent downturn in the SET. Being a farang, I want an investigation by the authorities to be sure everything is on the up and up..."

Absent any proof, it sounds like you don't really know what's going on and have assumed the worst ... "being a farang."

Unless s/he has appointed you to represent him/her, you may end up causing more problems than you solve. Announcing that you want an investigation by the authorities sounds like you could easily upset the very people best positioned to help your friend. You'll probably get more clarity by asking for assistance in understanding the problem rather than throwing about accusations and demanding investigations regarding an account that isn't yours.

Do you even have a copy of the rules regarding account withdrawals? If the money on deposit is meant to be almost fully invested there may be some quite legitimate notice period required for making withdrawals over a certain amount.

Your friend is already scammed.

Even if you have a copy of the rules in hand, scammers can make document as if it is genuine and authentic.

With the length of period you are not allowed to withdraw, they will be gone before the time you know you can withdraw.

I think that cooperative you are saying was the one who offers 20% interest for any amount invested on them. They employ staffs who call for potential investors.

A part-time staff said to have also invested her own money and already fast grew with its interest earned. Easily grew as she said because of the unbelievable interest her money earned.

It may be true that she invested or just her way to convince people to invest. She even said to think to resign at her teaching job because she was offered by the employer higher than the 40K she was earning as a teacher (directly employed).

But from the very start, I strongly didn't believe. Until, I learned from another person that the staff suddenly became silent and stopped recruiting investors.

[ThaiBob]

Thank you PIB, that is a start. He was the told the money was "borrowed" and would be repaid. I personally believe the cooperative there may have been borrowing, theft or investments gone sour with the recent downturn in the SET. Being a farang, I want an investigation by the authorities to be sure everything is on the up and up. Names, who is accountable, legally responsible, etc. Hopefully the BOT has some oversight in this situation.

"I personally believe the cooperative there may have been borrowing, theft or investments gone sour with the recent downturn in the SET. Being a farang, I want an investigation by the authorities to be sure everything is on the up and up..."

Absent any proof, it sounds like you don't really know what's going on and have assumed the worst ... "being a farang."

Unless s/he has appointed you to represent him/her, you may end up causing more problems than you solve. Announcing that you want an investigation by the authorities sounds like you could easily upset the very people best positioned to help your friend. You'll probably get more clarity by asking for assistance in understanding the problem rather than throwing about accusations and demanding investigations regarding an account that isn't yours.

Do you even have a copy of the rules regarding account withdrawals? If the money on deposit is meant to be almost fully invested there may be some quite legitimate notice period required for making withdrawals over a certain amount.

Your friend is already scammed.

Even if you have a copy of the rules in hand, scammers can make document as if it is genuine and authentic.

With the length of period you are not allowed to withdraw, they will be gone before the time you know you can withdraw.

I think that cooperative you are saying was the one who offers 20% interest for any amount invested on them. They employ staffs who call for potential investors.

A part-time staff said to have also invested her own money and already fast grew with its interest earned. Easily grew as she said because of the unbelievable interest her money earned.

It may be true that she invested or just her way to convince people to invest. She even said to think to resign at her teaching job because she was offered by the employer higher than the 40K she was earning as a teacher (directly employed).

But from the very start, I strongly didn't believe. Until, I learned from another person that the staff suddenly became silent and stopped recruiting investors.

Hopefully we are not talking about the same company. This coop has a large office and staff. There is no recruitment of investors.

[rotary]

Sounds like where the American Social Security system is headed

[ThaiBob]

Sorry to say but I`m afraid your friend can kiss his money goodbye.

With many of these get rich quick schemes the usually ploy is to declare the company bankrupt and with the company also goes their investors money.

These companies are not covered by the Bank of Thailand, Financial Consumer Protection, the same as Insurance company savings schemes. Or in other words, those who invest money with these companies do so at their own risk and discretion, it`s a gamble, some ya win, some ya lose.

Not good news, hopefully not true, maybe some other alternative.

[little mary sunshine]

Sounds like he was screwed............Live and Learn.....IF IT SOUNDS TO GOOD< IT IS A FRAUD !!!!!

[Showbags]

How much was the interest rate ?

[Gumballl]

Good advice, this is not my money, if it were things would be different. I can only provide information, it will be up to the Thais to take the initiative.

Advise your Thai friends to go to the co-op, and take out a sizable loan... say around 400,000 baht. And if they are successful, then advise them not to pay it back (i.e. default on it).

Edited February 1, 2014 by Gumballl

[gaucho]

if the facts r as stated then the dough is gone ...its a scam and relies on word of mouth ...more people invest and the rate is better than average and then voila ,,,,the disappearing act ..this guy would be one of many thats been ripped off ....they rely on victims feeling foolish ...and not saying anything ....its amazing and sad how many decent people lose their life savings and then join the flying club .....cheers

[cloghead]

Potential scam? Ain't nothing "potential" about it Bob

Your money is long gone with no way to get it back.

Ever heard the saying "a fool and his money"...?

[tirekicker]

No one will be responsible, because no one is ever responsible here.

Never a truer word spoken. .....

[meatboy]

if the facts r as stated then the dough is gone ...its a scam and relies on word of mouth ...more people invest and the rate is better than average and then voila ,,,,the disappearing act ..this guy would be one of many thats been ripped off ....they rely on victims feeling foolish ...and not saying anything ....its amazing and sad how many decent people lose their life savings and then join the flying club .....cheers

I know a few that fell for the pyramid scam last yr. but they wernt foolish people just GREEDY GREEDY GREEDY FOOLS

[ThaiBob]

Potential scam? Ain't nothing "potential" about it Bob

Your money is long gone with no way to get it back.

Ever heard the saying "a fool and his money"...?

For the record it is not my money. I certainly would have done my due diligence before putting any savings in an uninsured account.

[louse1953]

Thank you PIB, that is a start. He was the told the money was "borrowed" and would be repaid. I personally believe the cooperative there may have been borrowing, theft or investments gone sour with the recent downturn in the SET. Being a farang, I want an investigation by the authorities to be sure everything is on the up and up. Names, who is accountable, legally responsible, etc. Hopefully the BOT has some oversight in this situation.

You are posting like you lost your money?

Nope, I don't think a farang can have an account there. Just concerned as a good friend. He has other friends in the same situation. They are all worried but they have the attitude nothing can be done. I get upset when I see poor people like them get jacked around by some rich Thai or the system. People like this can be preyed upon because the perpetrators know they won't fight back.

Greed is the root problem here,on both sides.Happy to take the extra %.

[SheungWan]

Good advice, this is not my money, if it were things would be different. I can only provide information, it will be up to the Thais to take the initiative.

Advise your Thai friends to go to the co-op, and take out a sizable loan... say around 400,000 baht. And if they are successful, then advise them not to pay it back (i.e. default on it).

Probably the daftest solution I have read yet.