Financial Planning Central

Genneva Sdn Bhd Acquitted, Judge Says Its Genuine Gold Trading

Tiang Chuan — Fri, 17 May 2013 01:32:03 +0000

The Malaysian Court has acquitted the 3 directors and a former director of 224 charges of money laundering and 5 charges of illegal deposit-taking.

Judge Rozana Ali Yusof made the judgement that Genneva gold buy-back scheme is just a marketing strategy employed by the firm.

Bank Negara Malaysia (BNM) will file an appeal.

Note that this is a different company to Genneva Malaysia Pte Ltd and Genneva Pte Ltd in Singapore.

The Star Online 13-05-16 - Genneva: Judge says it’s genuine gold trading; acquits directors

The Star Online 13-05-17 - Four Genneva directors acquitted

Bank Negara Malaysia - Notice of Appeal to be filed on Genneva Sdn. Bhd. Case

Boron Scheme Not Sustainable – Court Told

Tiang Chuan — Thu, 25 Apr 2013 02:07:54 +0000

In the continuation of the hearing of the Profitable Plots case, a prosecution witness told the Court yesterday that the Boron scheme was “not viable”, reports the 25th April 2013 edition of The Straits Times (Investment scheme was ’not viable’).

A specialist in evaluating business sustainability from auditing firm Ernst & Young, Accountant Andre Toh Sern told the Court that the Boron scheme had US$4m in cash balance in November 2008 by had dwindled to just US$406,000 by August 2010 as payments exceeded revenue.

Just US$215 worth of Boron products was sold in Singapore during November 2008 to August 2010 when the brochure on the Boron scheme stated that the products had been pre-sold to major corporations.

The trial continues.

Profitable Plots Back In Court

Tiang Chuan — Tue, 23 Apr 2013 01:42:20 +0000

The trial of the 3 directors of landbanking firm Profitable Plots began yesterday, reported the 23th April 2013 edition of The Straits Times (Sham investment plot motivated by directors’ greed: DPP).

Deputy Public Prosecutor Luke Tan said that Profitable Plots’ directors were motivated by greed in coming up with the alleged fraudulent schemes, cheating 86 clients of US$8m. Each of the directors were faces 86 charges of allegedly conspiring with each other to cheat clients.

The DPP alleged that the trio came up with the Boron scheme (Boron CLS Bond), which involves the financing the sale of a lubricant to major corporation, to ease cash-flow problems at the group’s main business of selling land in the UK when it suffered losses due to the financial crisis in 2007 and 2008. The Boron CLS Bond came with returns as high as 12.5% in 6 months.

One of the witnesses, Mr Lim Kok Meng from the Commercial Affairs Department (CAD), told the Court that the 3 directors paid themselves huge salaries, bonuses and dividends.

The trial continues.

The Straits Times - Sham investment plot motivated by directors’ greed: DPP

The Business Times - Three directors hatched investment scam: DPP – Profitable Plots case

The Gold Guarantee Investigation Extends To Affiliated Companies

Tiang Chuan — Mon, 15 Apr 2013 05:42:47 +0000

CAD’s investigation into gold buyback firm The Gold Guarantee has been extended to 6 other affiliated firms. The 6 companies are:

Asia Pacific Bullion Pte Ltd
Singapore Precious Metals Pte Ltd
The Discovery Group Pte Ltd
Emperor Grand Pte Ltd
SG One Pte Ltd
The Gold Treasury Pte Ltd

CAD’s FAQ on the investigation into The Gold Guarantee has been updated with the following information.

Q. I am a customer of a company affiliated with The Gold Guarantee Pte Ltd. Is the CAD investigating companies affiliated with The Gold Guarantee Pte Ltd?
A. As part of the investigation into The Gold Guarantee Pte Ltd, the CAD is also looking into the business practices of some companies which are affiliated to The Gold Guarantee Pte Ltd. The companies are Asia Pacific Bullion Pte Ltd, Singapore Precious Metals Pte Ltd, The Discovery Group Pte Ltd, Emperor Grand Pte Ltd, SG One Pte Ltd and The Gold Treasury Pte Ltd. We are not at liberty to comment further on the details or scope of the investigation.

It was also reported on Channel 8 news on 14th April 2013 that The Gold Guarantee’s founder Lee Song Teck is still missing and he has owed credit card debts amounting to more than $150,000.

Another Gold Buyback Firm SG Gold Collapses

Tiang Chuan — Tue, 09 Apr 2013 11:24:20 +0000

Yet another gold buyback firm has collapsed. Channel 8 news reported on the 09th April 2013 that around 400 clients of SG Gold are affected after the firm closed down last month. SG Gold cited the slump in gold prices as the reason for closing down.

SG Gold unsuccessfully tried to find a buyer for the gold buyback business in December last year.

The gold buyback firm attracted clients from another gold buyback firm Genneva last year. Genneva is currently under investigation by CAD.

SG Gold the offered to pay former Genneva customers 2% a month for 6 months before buying over the gold. The catch is that the customer must pay $1,800 per 100 gram of gold upfront.

The police declined to comment if SG Gold is currently under investigation.

180 The Gold Guarantee Investors Turn Up At Hong Lim

Tiang Chuan — Thu, 07 Mar 2013 02:23:22 +0000

More than 180 investors of gold buyback firm The Gold Guarantee (TGG) turned up at The Speakers Corner at Hong Lim Park on the 06th March 2013 to sign a petition hoping to spur the authorities to expedite investigations into TGG, reports the 07th March 2013 edition of The Straits Times (180 investors ink petition, urge action on gold trader).

Attendees also called for regulation on such gold buyback operations as it does not come under MAS’s jurisdiction. Former clients and agents of TGG have also received text messages from another similar gold buyback firm offering similar schemes after news of TGG’s problems broke.

A family member of one of the investors said his family lost close to a million dollars on TGG.

Below is the coverage on Channel News Asia

TGG founder Lee Song Teck have remained uncontactable since January 8 this year.

The Straits Times - 180 investors ink petition, urge action on gold trader

CNA - Gold investors up in arms after another buyback scheme goes wrong

xinmsn - 逾百黄金投资者聚集芳林公园讨公道

The Gold Guarantee Investors To Collect Petition Signatures At Hong Lim Park

Tiang Chuan — Sat, 02 Mar 2013 11:48:57 +0000

Following months of failure to contact The Gold Guarantee (TGG) founder Lee Song Teck and the slow progress in CAD’s investigation, anxious investors of TGG will be collecting petition signatures for submission to the authorities at Hong Lim Park. Details as follows:

Where: Hong Lim Park

When: Wednesday, 06th of March, 2013

Time: 11.30am to 1pm.

Investors who would like to know the latest developments and to get in touch with other investors can make their way to Hong Lim Park at the above mentioned date and time.

Good luck to all!

The Gold Guarantee Investors Can’t Sell Their Gold

Tiang Chuan — Wed, 06 Feb 2013 02:10:51 +0000

It has been said that investors who took physical possession of their gold has less to worry about compared to those who left it with The Gold Guarantee (TGG) for higher ‘interest’ as they can still sell it to pawnshops or banks. Now, some investors are facing difficulties trying to sell their gold holdings. The 06th February 2013 issue of The Straits Times (Gold investors find no guarantee in their assets) reported that some pawnshops are refusing to take in gold associated with TGG due to the CAD probe.

A local bank may decide to buy back the gold although they are not obliged to do so. However, the bank may take in the gold at a discounted price if the seal from the bank remains intact.

A lawyer warned that investors have to check their contract to see if they can sell their gold. They may not be able to sell the gold to a third party if the contract explicitly stated that they have to sell it back to TGG. Investors may want to seek legal advice on the possible legal repercussions against TGG before selling their gold.

CAD Investigates The Gold Guarantee

Tiang Chuan — Sat, 02 Feb 2013 08:15:07 +0000

The Commercial Affairs Department (CAD) has stepped in to investigate gold buyback firm The Gold Guarantee (TGG) after investors made police reports. TGG founder Lee Song Teck has remained uncontactable since Jan 8. CAD has also listed a FAQ page on the investigation into TGG. Below are the page contents:

Q What is the status of the investigation?

A The investigation is underway. The CAD will inform of the final outcome of the investigation.

Q I have entered into agreements with The Gold Guarantee Pte Ltd to buy gold products. In these agreements, The Gold Guarantee Pte Ltd has promised regular monetary payouts and also offered to purchase my gold at the end of the contract. Can The Gold Guarantee Pte Ltd continue to fulfil its obligations under these agreements in view of the investigation by CAD?

A Queries pertaining to monetary payouts and offers to purchase by The Gold Guarantee Pte Ltd under the agreements should be addressed to the company.

Q I am holding a warrant which states that The Gold Guarantee Pte Ltd unconditionally undertakes to deliver a specified quantity of gold to me in exchange for the warrant. Will I still be able to effect the exchange?

A Queries on matters related to the warrants issued by The Gold Guarantee Pte Ltd should be addressed to the company.

Q Do I need to make a report if I have entered into agreements with The Gold Guarantee Pte Ltd to purchase gold products?

A If you have not been contacted by the CAD to provide information on your payments to The Gold Guarantee Pte Ltd and you wish to lodge a police report, you may contact the CAD office at 9660 5603 during office hours to make arrangements. Our office hours are 8.30am to 6.00pm on Mondays to Thursdays and 8.30am to 5.30pm on Fridays. Alternatively, you may go to the nearest Neighbourhood Police Centre to lodge a police report.

Q I have paid a deposit to buy gold products from The Gold Guarantee Pte Ltd. Will the CAD assist to recover the deposits placed with The Gold Guarantee Pte Ltd?

A The purpose of the investigation is to determine whether any criminal offence has been committed. If there is criminal wrongdoing, the CAD will do its best to ensure that monies that have been illegally obtained are recovered and properly dealt with according to the law.

Q Can the CAD confirm whether the funds I deposited with The Gold Guarantee Pte Ltd recently have been seized by the CAD?

A At this time, the CAD is not at liberty to publicly release the details of assets seized in the course of the investigation into The Gold Guarantee Pte Ltd. As such, we are not able to confirm whether what items anyone has deposited with The Gold Guarantee Pte Ltd are among the assets seized.

Q I paid money to The Gold Guarantee Pte Ltd recently and have not received my returns which are due. If the CAD has seized the money I paid to The Gold Guarantee Pte Ltd, can I take it back now from the CAD?

A The properties which the CAD seized during the course of the investigation cannot be dealt with except at the direction of the Court. The CAD will apply to the Court to deal with the seized properties at the conclusion of investigation and any resulting criminal proceedings. The properties will be kept in safe custody until then. Information on whether and how to file a claim will be publicly released after these proceedings have concluded. At this time, we are unable to estimate the length of time these proceedings will take.

Q How do I contact the CAD if I have queries on the matter?
A You can contact the CAD office at 9660 5603 during office hours. Our office hours are 8:30am to 6:00pm on Mondays to Thursdays and 8:30am to 5:30pm on Fridays.

The Gold Guarantee’s Customers Lodge Police Report

Tiang Chuan — Sat, 26 Jan 2013 01:38:30 +0000

More customers of beleaguered gold buyback company The Gold Guarantee (TGG) have lodged police reports after its founder and CEO Lee Song Teck remains uncontactable, reports the 26th January 2013 edition of The Straits Times (Customers lodge police report after CEO goes missing).

It was reported that about 2 dozen customers made their way to the Commercial Affairs Department (CAD) on the 25th January. An officer briefed investors that the police are investigating but no details were given.

One TGG customer shared that he saw a couple from China buying 30kg of gold. This would work out to be nearly S$3 million. He also said that others have sold their property to invest with TGG.

The article highlighted that TGG’s employees were “forced to sign ‘release and resignation’ letters” on 18th January terminating their employment on the very day.

Senior management had removed computers hastily a few days before the 18th January and staff also made photocopies of invoices and other documents.

The plot is thickening for this saga…