14-03-2012, 05:55 PM
Another scam!
8% and 12% per annum guaranteed? There's no free lunch in this world. Most of the time if you can get 5-6% returns consistently, year on year, you'd be considered a pretty good investor.
The Straits Times
Published on Mar 14, 2012
Ex-financial adviser jailed 22 months for cheating clients
By Khushwant Singh
A financial adviser gained the trust of his clients by chalking up healthy returns on their Central Provident Fund (CPF) investments through his firm, Elpis Financial.
Edwin Lim Gee Chai then cooked up an investment scam that purportedly guaranteed the principal amount while paying high interest. These investments had to be in cash and three clients lost a total of $265,000 between 2006 and 2008.
He pleaded guilty on Wednesday to cheating and forgery and was sentenced to a year and 10 months in jail. He had forged documents with the Elpis letterhead to fool his victims.
A district court heard that in 2006, air-con technician Yong Si, 59, invested $4,800 of his CPF funds through Elpis.
A month later, Lim convinced Mr Yong to put $40,000 in the bogus investment scheme after promising a guaranteed annual profit of eight per cent. Mr Yong did receive $3,200 in 2007 as 'profit' but nothing after that.
Lim also cheated Ms Chong Sook Siang, 32, and her 61-year-old mother of a total of $225,000.
The daughter, a product development executive, ran a background check on Elpis before she committed her CPF money in a unit trust.
Later that year, in 2007, Lim introduced his bogus investment scheme to Ms Chong and her mother, a canteen assistant, promising them a monthly return of one per cent with the principal sum assured.
The court heard that only $27,700 has been recovered by police
8% and 12% per annum guaranteed? There's no free lunch in this world. Most of the time if you can get 5-6% returns consistently, year on year, you'd be considered a pretty good investor.
The Straits Times
Published on Mar 14, 2012
Ex-financial adviser jailed 22 months for cheating clients
By Khushwant Singh
A financial adviser gained the trust of his clients by chalking up healthy returns on their Central Provident Fund (CPF) investments through his firm, Elpis Financial.
Edwin Lim Gee Chai then cooked up an investment scam that purportedly guaranteed the principal amount while paying high interest. These investments had to be in cash and three clients lost a total of $265,000 between 2006 and 2008.
He pleaded guilty on Wednesday to cheating and forgery and was sentenced to a year and 10 months in jail. He had forged documents with the Elpis letterhead to fool his victims.
A district court heard that in 2006, air-con technician Yong Si, 59, invested $4,800 of his CPF funds through Elpis.
A month later, Lim convinced Mr Yong to put $40,000 in the bogus investment scheme after promising a guaranteed annual profit of eight per cent. Mr Yong did receive $3,200 in 2007 as 'profit' but nothing after that.
Lim also cheated Ms Chong Sook Siang, 32, and her 61-year-old mother of a total of $225,000.
The daughter, a product development executive, ran a background check on Elpis before she committed her CPF money in a unit trust.
Later that year, in 2007, Lim introduced his bogus investment scheme to Ms Chong and her mother, a canteen assistant, promising them a monthly return of one per cent with the principal sum assured.
The court heard that only $27,700 has been recovered by police