SwissCash Scam
I remember this scam surface in our EAP and Money & You email group. Take a look at the TODAY’s article emailed to me by a reader to warn people. In my humble experience, I will be very wary and shy away from investment scheme that promises: Sure/Confirm High Return, Fast and High Return, Minmium Effort (You need not do anything at all).
PYRAMID-LIKE INVESTMENT SCAM HITS S’PORE
—————————————-
Chow Penn Nee
pennnee@mediacorp.com.sg
An investment scam that has been making the rounds in Malaysia has hit Singapore, too. Known as SwissCash or Swiss Mutual Fund, it promises huge returns for a minimum investment of US$1,000 ($1,500).
Marketed through the Internet, the SwissCash website claims that investors can achieve a total of 300 per cent returns in 15 months, or average returns of 25 to 45 per cent per month, through investments in commodities, for exchange and equities.
The firm, Swiss Mutual Fund, is an offshore investment company headquartered in the Commonwealth of Dominica, according to its website www.swissmutualfund.biz.In Malaysia, about 40 investors are believed to have fallen prey to the scam. According to reports, eight men are helping police in their investigations into alleged cheating of about RM20 million ($8.7 million) through the Swiss Cash fund, in October last year. The Swiss Embassy and Central Bank in Malaysia have both issued warnings to investors about the scheme.The Monetary Authority of Singapore (MAS) has confirmed that Swiss Cash or Swiss Mutual Fund is included in the MAS’ Investor Alert List (IAL). This is a list of companies or individuals that may be conducting activities not regulated by the MAS.
The list can be found at
www.moneysense.gov.sg/check_our_list/Consumer_Portal_IAL.html.By giving Singaporean investors the false impression that they are operating in Singapore or by sometimes using names similar to entities regulated by the MAS, these companies are able to attract Singapore consumers, the MAS’ website said.Consumers who deal with firms that are not regulated by the MAS will not get recourse to compensation if they lose money on their investments, the central bank said.
The Swiss Embassy here is also aware of the scam in Singapore, and has posted notices on its website advising against Swiss Cash as an investment. On its website, the embassy said that the company uses the word “Swiss” illegally. “The Swiss Mutual Fund (1948) and or Swiss Cash are not registered companies in Switzerland.”
It added that the promotion of the fund seems to work via agents on a multi-level marketing or MLM system, which appears to closely resemble a pyramid scheme.
Mr Rolf Frei, Deputy Head of Mission at the Swiss Embassy, told Today that it had received three to four enquiries on the investment scheme since half a year ago.
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Adrian Flory, said,
January 25, 2007 @ 9:44 am
Hi,Ken.How about this for a scam??A person places an add stating,How to become very rich!! .Just send $10 to.Po.xyz……To receive everything you need to know.!! Ken,I wonder how many people would send there $10??? Only to receive a letter back saying “If you want to become very rich,place an add telling people to send $10 to Po..xyz”…
Jacqueline said,
January 27, 2007 @ 2:48 pm
Hi Ken,
Glad to know about SwissCash. I’ve been approached a few time & though I felt there was something wrong about it I never could give any proof. I’ll point your blog to some of my friends who are doing SwissCash.
Thanks a lot & nice article.
EAP1-KL
Eric Jonathan Lee said,
January 28, 2007 @ 5:59 am
The Today report is basically a copy-and-paste of old The Star news and is full of inaccuracies. The MyPaper has 5 points of sheer errors.
If anyone is to choose to believe in newspaper reports without analysing the contents, and make an informed judgement, I am afraid there will be simply more myths than truths being propagated.
And indeed, the Today and MyPaper reports are two shoddy pieces that cannot even pass basic standards of journalistic source verification and independent observations.
Cheers!
ken said,
January 29, 2007 @ 9:22 am
Dear Eric Jonathan Lee,
In that case, give us “YOUR TRUTH” then.
Cheers
Ken
Eric Jonathan Lee said,
April 11, 2007 @ 3:10 am
http://www.talkgold.com/forum/showpost.php?p=1767753&postcount=7473
:)
Chris Leong said,
April 19, 2007 @ 9:32 pm
I have been going through forums after forums on swisscash and was surprised that there were comments made even in 2001. If it is a scam, how can it last so long and why is its website still up and running, seemingly problem-less?? I haven’t invested a single cent yet but i have heard that real scam like buyebarrel last only 4 - 5 months, not >6years; maybe this pretend-swiss know something we don’t … just like all the “genuine swiss watches” selling in the night markets are hmmm “to the legal eagles” counterfeit… but they are still selling and making good money.
Eric Jonathan Lee said,
April 27, 2007 @ 1:51 am
Dear Chris,
Let’s forget about allegations, speculations and assumptions.
These are the facts:
1) No one has proved conclusively that SwissCash is a scam.
2) No one has proved conclusively that SwissCash is a real business entity.
3) SwissCash has not missed a single payment since Apr 2005.
Perhaps only SwissCash and Swiss Mutual Fund investors will know for sure.
I won’t go into detail arguments about 1) and 2), there’s too many on the Net, just google it and make up your own mind.
I also have to say that being included inside MAS’ alert list does not mean the companies listed are illegal. It just means that MAS either
1) has no idea about the company operations
or
2) the company is not licensed to operate in Singapore
or
3) MAS does not have the time to investigate into the company
I can give one example of a legitimate business that is listed inside the alert list:
FXCM
I also have to say that Chow’s article is a shoddy piece of internet cut-and-pastes. Reference her article and you will see her source is from a Malaysian tabloid. The part about investors being scammed by SwissCash is wrong. It was a scam using a Swiss bank’s name to solicit funds. Somehow the Malaysian tabloid got confused with SwissCash. This part is so famously wrong that it has been laughed about for months, and Ms Chow did not check her source and verify the content, before she googled, and cut-and-paste.
Very unprofessional.
ken said,
April 28, 2007 @ 10:19 pm
Dear Eric, are you a swiss cash “investor”?
ken said,
May 14, 2007 @ 6:50 pm
Dear All,
My stand is simple:
I will be very wary and shy away from investment scheme that promises: Sure/Confirm High Return, Fast and High Return, Minmium Effort (You need not do anything at all).
P/S: Eric, Please enlighten me on what does Swiss Cash invest in that enable it to generate consistent high return because I can explain in details how Value Investing works? If you cannot explain in a logical manner, then it does smell like a scam. It seems like an old money pyramid game where using new “investor” money to pay the “old” investor until to a point, it will collapse! Yes, you get paid for 6 months, 12 months, maybe even 2 years because as long as the recruitment hype is there,. Evenually it will collapse because it is a zero sum game. There is no value creation. I strongly encourage you to be educated by reading and seek for more successful mentors to understand the world of investment and business. If this system is so good, why isn’t big institutions on the band wagon like UBS and Citibank in it? I here by challenge any Swiss Cash investor go to any bankers and recruit them and see what would savvy financial investors say about your “wonderful” scheme.
PP/S: Eric, if you are not a fan of my blog like what you indicated to others, why are you back to reply other people messages? If you could not provide me any “REAL TRUTH”, stop preaching it like a TRUTH about swiss cash. Period.
ken said,
May 15, 2007 @ 11:29 am
Hi Chris, allow me to share this you, long before Swiss Cash, there is a scheme called PIPS and PicPay from 2003 to 2005. Similar MLM scheme and promised return, same promise of financial freedom etc In fact, people get paid initially and the recruitment hype was so strong! In the end, the whole structure fall because the founder, “Bryan” never invested the money collected and I was told he was arrested for fraud and scam.
I have 2 friends, both get burned in this PIPS & PicPay scheme without mentioning the downlines they recruited. And yes, they got paid from 6 months to 12 months initially! Read below:
http://www.fraudguides.com/pips_investment_scam.asp
I urge you and rest of so called “good opportunity” investors to answer the following:
1. What do Swiss Cash invest in? From their website, it is a load of craps of cut and paste from some financial terms about equity and debts investment etc Any decent fund management house would have a clear guideline on their investment parimeter stated in their prospectus. I see none!
2. Who are the founders? Who is the management team? Who is their key investment strategist? Hey, at least when I invest in SPH shares, I know who is their CEO and board of directors.
3. Call the company and ask to speak to the manager directly and ask for real EIN# issued from an US State and see what you get.
4. Try to google their address:
280 Madison Avenue
912 - 9th Floor
New York, New York
NY 10016
Read more at http://www.hyip-expert.com/tools/blogger/index/blog_id/83/
In a nutshell, this is a Ponzi Scheme. Google it and you will learn more. It is funny people don’t really learn from history because of greed and promised of easy money. Ignorance is not bliss.
Lee said,
June 18, 2007 @ 4:16 pm
I am a very experienced investor. You can say I am an old-timer. I have tried everything from bonds to land banking to shares to hedge funds to… Just looking at the Swiss Cash investment scheme and I feel a great unease. I hope people won’t buy into it. Haha…no agenda here but just a public service. Don’t want to see people loss their hard-earned money. As Ken says: “I will be very wary and shy away from investment scheme that promises: Sure/Confirm High Return, Fast and High Return, Minmium Effort (You need not do anything at all).” I totally agree. Alarms bell must ring when managers promise you high returns in a short period of time.
chungsiew said,
June 18, 2007 @ 6:50 pm
Now the Malaysia government sc bang the website on swisscash. It had just happened recently on this 11th June, how do you look on this, is it really scam?? Even the Govn sc bang the website on www.sip25.com and www.swisscash.net. It can’t access any more.
KL said,
June 20, 2007 @ 8:55 am
In my humble opinion, the intention here is not who’s right or who’s wrong…The first posting is just a warning from 1 person to others. You can believe it or not believe it.
Anyway, if you are going to invest a sum of money, you have better to do your due deligence in no matter what investment. Not only in this but also in all investment. Although 1,000-2,000 in the investment in question of this Swiss Cash thingy may not be much to some, just add another 2zeros behind and see what it feels like. Will you think more critically and check the company’s background?
Of course there’s lots of hype because the fund managers, investment companies, brokers, etc. wants you to part with your money. Basic marketing, non?
Like Ken said, make sure you check the background yeah!
Eric Jonathan Lee said,
June 21, 2007 @ 8:09 am
Dear Ken,
1) Dear Eric, are you a swiss cash “investor”?
> Yes, I am an “investor”, since Oct ‘06
2) My stand is simple:
I will be very wary and shy away from investment scheme that promises: Sure/Confirm High Return, Fast and High Return, Minmium Effort (You need not do anything at all).
> Me too!
3) P/S: Eric, Please enlighten me on what does Swiss Cash invest in that enable it to generate consistent high return because I can explain in details how Value Investing works? If you cannot explain in a logical manner, then it does smell like a scam.
> I have no idea how SwissCash does it, what they are actually doing, what they are actually investing in. I did my due diligence, which I am not completely satisfied with the outcome.
> One fine day, I drew a chart:
> Pro: $1,000 becomes $3,000 450 days later.
> Con: I lose $1,000
> Question: Can I afford to lose $1,000?
> Answer: Yes, just work and make back the money, no sweat.
> Question: What ‘IF’ this is a real-opportunity? What ‘IF’ this is a Fast-Track? Can I afford to lose $1,000?
> Answer: Hm…. perhaps…. this can be seed money for bigger things….
> And so I did what Wendy said, “don’t analyse until paralyse”, and following my heart, following your call, “take action!” (btw, marvellous EAP previews that you did
) and took the plunge.
> 8 months passed, looking back now, I did not regret my following my heart. What the heck! Money lost can be earned back, right?
> Just like EAP was the best money I ever spent. You guys opened up my eyes. And I learned how to dream again.
> Anyway, I know nuts about value investing, that part you are the expert.
> I am not trying to promote SwissCash, I am just sharing what is my experience (most of it on MMG), and pointing out in your blog that, not all news, especially those from a government media, can be entirely believed. We all need to exercise due discretion, observation, and decision whether to believe or not. Even CNN cooperated with the USA government during Desert Storm. What we see on the surface is only what is on the surface, there are much deeper waters that we know not of.
> It is easier for a person not in the know to speculate on what he does not know. But it is much easier for the person not in the know, just to ask the person in the know. Or simply, step inside the know, and find out.
> Speculations remain as speculations.
> Until the truth is known, all else are propositions.
4) I strongly encourage you to be educated by reading and seek for more successful mentors to understand the world of investment and business.
> Thanks! I try to. I especially like Warren Buffet’s “put all your eggs in one basket” investing …. that one is good.
If this system is so good, why isn’t big institutions on the band wagon like UBS and Citibank in it?
> Dunno, I haven’t asked them. Have you?
> If I have George Soro’s number, maybe I can ask him.
I here by challenge any Swiss Cash investor go to any bankers and recruit them and see what would savvy financial investors say about your “wonderful” scheme.
> eh… I heard a few bankers are into it. And I also heard a private investment club said the SwissCash returns is too low, they are into other things like company buyover, venture capital, insider trading, etc. Pity that is in another league closed off to small fries like me.
5) PP/S: Eric, if you are not a fan of my blog like what you indicated to others, why are you back to reply other people messages?
> erm… I googled “SwissCash” and your site appears in the first page?
If you could not provide me any “REAL TRUTH”, stop preaching it like a TRUTH about swiss cash. Period.
> er… I thought in my previous post, I provided facts? Was I not well-balanced? Did I do any promotion at all?
> erm… I wasn’t even talking about SwissCash in my previous posts! I was talking about journalism!
> Ken….. you ate too much banh cuon in Vietnam that got to your head, right?
> Talking about Vietnam, tremendous development since I was there 9 years ago…. do you have any tips how to invest there?
> Full-Stop.
:-)
Ken Chee said,
June 24, 2007 @ 1:52 pm
Dear Eric,
> Yes, I am an “investor”, since Oct ‘06
Did you take part in recruiting and promoting Swiss cash? Meaning to say, do you have downline and earn commission thru ur downline? Do you know this might be a Ponzi Scheme? In fact, it is 99.9% confirmed because of the payout structure since it has no way to justify the return in their “investment”. Do you know what is a Ponzi Scheme? Google it and read.
> I have no idea how SwissCash does it, what they are actually doing, what they are actually investing in. I did my due diligence, which I am not completely satisfied with the outcome.
> One fine day, I drew a chart:
> Pro: $1,000 becomes $3,000 450 days later.
> Con: I lose $1,000
> Question: Can I afford to lose $1,000?
> Answer: Yes, just work and make back the money, no sweat.
> Question: What ‘IF’ this is a real-opportunity? What ‘IF’ this is a Fast-Track? Can I afford to lose $1,000?
> Answer: Hm…. perhaps…. this can be seed money for bigger things….
> And so I did what Wendy said, “don’t analyse until paralyse”, and following my heart, following your call, “take action!” (btw, marvellous EAP previews that you did ) and took the plunge.
> 8 months passed, looking back now, I did not regret my following my heart. What the heck! Money lost can be earned back, right?
> Just like EAP was the best money I ever spent. You guys opened up my eyes. And I learned how to dream again.
Unfortunately, this is the flaw of EAP which I gathered from the past graduates feedback, there is no education and emphasis on the concept of “Value Add & Integrity” in business. More graduates are staying away from the network.
I salute you for taking ACTION. However, please note that Take Action only when it is a NOT ZERO SUM GAME. The game you are playing is a zero sum game because for you to WIN, someone has to LOSE. And by not seeing it when some one lost their house, life saving, family in Thailand, China or Philippine does not mean that you are not responsible (If you promote and support it)
> I am not trying to promote SwissCash, I am just sharing what is my experience (most of it on MMG), and pointing out in your blog that, not all news, especially those from a government media, can be entirely believed. We all need to exercise due discretion, observation, and decision whether to believe or not. Even CNN cooperated with the USA government during Desert Storm. What we see on the surface is only what is on the surface, there are much deeper waters that we know not of.
> It is easier for a person not in the know to speculate on what he does not know. But it is much easier for the person not in the know, just to ask the person in the know. Or simply, step inside the know, and find out.
> Speculations remain as speculations.
> Until the truth is known, all else are propositions.
Thanks! I know your initial intention. I did my investigation and have seen these kind of HYIP scheme come and go. My friends got burnt. The pattern, structure and cult like behavior is always similar. The real people who get really rich is the founder and the top line that start the ball rolling.
The key is not whether you got paid or not, the key issue is that this is a money game and it is illegal because there is no REAL VALUE created except using new investors money to pay the old and until the structure cannot support, it will collapse. By the way, all scam starts to pay out on time and gain the trust initially. Back to a fundamental question, if this Swisscash business is operating with full integrity, why does it need to hid all the financial transactions, the management details and even their real address? The reason is simple, easier for the people to start skip town when they pull the rug. The common folks standing on the rug will suffer.
How would you feel when the people lost their life saving, house etc? People who get burnt most badly are the blue collar workers who know nuts about investment. You have doubts and still support this scheme? By making a decision to keep mum make you a supporter too.
> Dunno, I haven’t asked them. Have you?
> If I have George Soro’s number, maybe I can ask him.
Simple. Because big institution do reference check. I called my investment friend at Citicorp and within 60 mins, they came back with a statement: Scam.
> eh… I heard a few bankers are into it. And I also heard a private investment club said the SwissCash returns is too low, they are into other things like company buyover, venture capital, insider trading, etc. Pity that is in another league closed off to small fries like me.
You heard? Give me names and reference. Or this another lies that generated by Swisscash cult that you heard from?
So what is your stand on Swiss cash? Make clear your stand? What is your intention?
> er… I thought in my previous post, I provided facts? Was I not well-balanced? Did I do any promotion at all?
> erm… I wasn’t even talking about SwissCash in my previous posts! I was talking about journalism!
> Ken….. you ate too much banh cuon in Vietnam that got to your head, right?
Nope, I am only concerned that opportunitists who have shark like behavior using the network for their own benefit rather than adding value.
> Talking about Vietnam, tremendous development since I was there 9 years ago…. do you have any tips how to invest there?
I will share more on Vietnam if I have any investment insight. Nevertheless, SGX is attracting Vietnamese company to list here soon. This the most direct way so far that I know.
Don said,
July 30, 2007 @ 9:07 pm
This Mr Eric Jonathan Lee (Ninth Dimension)
Let’s change his username to (Mr Disclaimer) Do you ever have the guts or balls to stand up for anything about this program?
From your comments , you seem to want to give us the image of you being an innocent Fence Sitter and that’s the last thing you are.
Everytime Ken asks how you feel about your Cheerleading payouts being the result of someone else losing , you sidestep the question with Psycho-Bable BS.
Reality is here , Mr Disclaimer is a full blown cheerleader and always has been for this scam and the Singapore police needs to be notified. I hope every one of these dudes gets alot of prison time for the lives they destroyed.