The Singapore Police Force (SPF) announced that a 29-year-old man has been arrested for his suspected involvement in a series of investment scam.
The Police said that it received several reports on cases of Ponzi Schemes in late September 2016. The suspect is believed to have forged company staff pass to mislead the victims into believing that he is a trader and offered false lucrative trading investment offers to lure the victims. The victims says that after transferring their monies, they do not receive the promised returns.
Ponzi Scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
Officers from Ang Mo Kio Division conducted investigations and arrested the suspect on 27 September 2016 upon receipt of the reports.
The suspect will be charged in Court on 29 Sep 2016 with the offence of Cheating, which carries an imprisonment for a term which may extend to 10 years and a fine.
The Police reminds members of the public to be wary of such Ponzi Schemes if they are considering any type of investment:
- Be cautious of promise of high returns. Investments with high returns usually come with high risks. Always check with a licensed financial advisor before engaging in any investment.
- Do not provide names, identification numbers, passport details, contact details, bank account or credit card details to someone whom they do not know well.
- Be careful when dealing with unregulated entities. If the entity is based outside of Singapore, check with the respective overseas authority if the entity is regulated.