I was naive back than. I assume VGMC was a MLM scheme but after the Geneva Gold got busted, i finally understand that VGMC is actually a PONZI SCHEME!
Characteristic
1) detailed fabricated information
2)Typically extraordinary returns are promised on the investment
"its an international business, not a local business, by means, it is a legit business" but what it
actually means is, it is an offshore business,you cant sue it
- "hedge futures trading," ( you're among the lucky one to join this)
3) Hedge fund / Secretive and/or complex strategies
Privately open to certain people. usually they make a private gathering and try to convince you how legit the business is. MLM style!
reason: the more people know about this, the faster they are going to get caught red handed. better fool a few stupidos.
4) Initial high returns or reward.
Promoter will pay out high returns or rewards to attract more investors o.Other investors begin to participate, leading to a cascade effect. The "return" to the initial investors is paid out of the investments of new entrants, and not out of profits. (cth: read the instagram comment)
5) Minimize withdrawal in exchange for a higher returns
Promoters also try to minimize withdrawals by offering new plans to investors where money is frozen for a longer period of time, in exchange for higher returns.
From this guy post, the money was frozen for investment to join the Stock exchange by next year.
-IPO Bursa saham. It aint easy to get your company public listed especially when your company is on the suruhanjaya sekurity malaysia
- NYSE ? seriously? hope your transparency, certs and auditors are legit enough to fool New York
6)High investment returns with little or no risk.
this guy is full of optimism. haish
Differences between ponzi scheme and MLM/ pyramid scheme
Unraveling of a Ponzi scheme
When a Ponzi scheme is not stopped by the authorities, it sooner or later falls apart for one of the following reasons: ( copy paste from wikipedia)
1)The promoter vanishes, taking all the remaining investment money (minus payouts to investors already made).
2)Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out
3)External market forces, such as a sharp decline in the economy (for example, the Madoff investment scandal during the market downturn of 2008), cause many investors to withdraw part or all of their funds.
VGMC IS A SCAM. It has:
- no gold
- no gold mines
- no employees
- no trade memberships
- no investments
- no joint ventures
- no government licenses or permits
- no registration on any stock exchange
- no financial statements
- no private placement memoranda
If its a really good investment, the bank would be the first to invested all their money in it.
Btw, where the fuck can you get Thousand tans of gold to pay off a single investor?
They are basically paying off these investor with blank empty papers. Common sense bro.
And why do Bank give out loans for these unsuspected ponzi victim?
Its their job to give out LOANS! Every month they have a benchmark which require them to loan it off!
p/s: MLM/ ponzi victims are either unaware about this or just plain ignorant & egoist. BTW they are so obsess with their product, they tend to act like a cult.
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