Malaysians fall for Ponzi-like scheme in China

11 Feb 2014 / 22:22 H.

    KUALA LUMPUR (Feb 11, 2014): A syndicate operating a Ponzi-like scheme from Nanning, in Guangxi Province, China, has been attracting Malaysians by the dozens.
    Under the "Pure Capital Investment" get-rich-quick scheme, all one needs to do is to invest 69,800 renminbi (RM38,474) up front and get at least three downliners (new investors) to become a multi-millionaire as the investment is supposed to generate a return of more than 100 fold i.e. 7.8 million renminbi (RM4.3 million) in two years.
    A China Press reporter who went undercover to expose the "money makes money" scheme that the low-profile syndicate says is treading a fine line between a scam and a legal operation, reported today that at least 100 Malaysians have invested in the scheme and are unknowingly abetting the operator by recruiting downliners.
    The report said the syndicate uses its local contacts, or middlemen, to lure potential investors/victims with all-expenses paid trips to the southern China city where they are brainwashed by "professionals" into believing that Pure Capital Investment is their chance of a lifetime to become multi-millionaires in a short time.
    The reporter was told during a series of brainwashing talks that the scheme is neither legal nor illegal as it is operating in some grey area in between, and that it is supported by the central and provincial governments.
    The syndicate also gives investors the impression that get-rich-quick investments are always operating in the grey areas of the law and that investing in Pure Capital Investment is not against the law.
    It is understood that although many of the Malaysian investors are businessmen with spare cash at hand, others are retirees living on pensions who risk losing their life savings should Pure Capital Investment collapses on itself, as Ponzi schemes always do when new investments stop.

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