Singaporeans lured by alleged pyramid scheme linked to investment opportunities in China

“Ultimately, we discussed, and I think since we didn’t have to pay upfront, we just said yes and then got out (of the room),” recalled Mr Tan, adding that they did not follow through with payment nor put money into the scheme.

But it was a different story for Rachel, who visited Nanning in 2016.

Despite some reservations, she said she ultimately felt she could trust her host and other investors she had met.

“They are all older than me. I thought they were more savvy than me. If they recognised this as a good business opportunity, maybe I should consider,” said Rachel.

She and Michelle also described being advised on how to raise the funds required to join the scheme.

“(She) taught me to pawn things from my own assets… Also, (she said) you can cash out your (insurance) policy. You can pawn your Rolex. You can sell (other things),” recalled Rachel.

“You can borrow a few S$1,000 from your family members. You can slowly return them.”

Rachel said she eventually chose to sell off her insurance policies and raised S$45,000. She then transferred S$45,000 to her host’s Singapore bank account.

REALISATION AND REGRETS

After investing, those who signed on to the scheme were offered training sessions and workshops. No photos and videos were allowed at these sessions in Singapore.

Rachel said they included lessons on rules of engagement and how to approach prospective investors, including family members whom they were told to approach first.

She eventually asked her cousin if he was interested.

“He was asking, how much is the amount you need to put in, and how much is the interest?” said Rachel. “He said it cannot be so good.”

Her cousin showed her the online news articles about such a scheme but she was initially in denial. Nevertheless, she looked into it more and realised that the details outlined in the articles were similar to what she had experienced.

She then began thinking of ways to exit the scheme.

“I would not want anybody to take over my place just because I want to get my money back. So I said no. This option is out,” said Rachel.

She told her recruiter that her family needed the funds back urgently. This, however, was initially met with refusal and frustration.

Rachel said she persisted by calling her recruiter every day for a month, before she finally relented.

Her recruiter told her the S$45,000 she had transferred over would be returned to her via the account which she had opened in Nanning.

For many weeks, Rachel would withdraw the maximum allowed each day from her Nanning account and has so far retrieved about S$20,000.

“I consider myself lucky to get (some) money back,” said Rachel. “I feel so naive.”

Others like Michelle were less fortunate and are trying in vain to recover the money they have put in. 

POLICE REPORTS AND SPEAKING OUT

Despite not putting money into the programme, Mr Tan made a police report following the trip.

He was among three interviewees to do so.

He decided to recount his 2018 experience in a LinkedIn post in July, after a friend told him more Singaporeans were being invited to Nanning in recent times.

The post prompted numerous people to contact him.

“A lot of people reached out to me …  Some of them had worse experiences than me,” he said.

Rachel said she has tried to warn others whom she got to know on the Nanning trip or those who may have been interested in investing.

“I called all my girlfriends … if anyone tells you to go to Nanning, please be mindful,” said Rachel.

“The experience itself is one whole big lesson.”

Financial experts stressed the need for individuals to be discerning about investment opportunities.

Professor Lawrence Loh, who is Director of Governance and Sustainability at the National University of Singapore Business School, said individuals should approach investment opportunities with caution, particularly when they are asked to commit significant sums of money.

“Whenever something comes… always try to validate the information, even through multiple channels,” he said.