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Pay ins and pay outs....again

June 04, 2019 - Tuesday 4:06 AM by Allan Nawal

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Much has been said about investment entities that have sprouted like mushrooms in the past months.

In the beginning, the returns promised were not that alarming at 15-25 percent, but people began swarming their offices when they started promising more.

There is this one company that eventually pledged up to 40 percent of your invested money each month.

In effect, it created a much louder buzz and people have started posting on social media their experience -- the pay out is real.

The social media posts have created a sort of free advertisement for the investment entity masquerading as a religious group and in a short time, the number of people putting money in it so it can grow its alleged business, including foreign exchange operation, also grew maybe 1,000 times. And yes, the pay out continues to this day so it must be real, according to members.

"Our forex business must be going strong," one member said.

As the pay ins increased, several other companies sprouted. And unlike the first ones, the new players are far more aggressive -- offering returns of up to 500 percent.

Like the first one, the new companies also touted that they are making much money from their forex trading.

But is forex trading that profitable? Yes, if you have large capital.

Granting that these companies are indeed into forex and are making big bucks using the pay ins, the investors must be happy.

But wait, forex trading is quite complicated when done online.

First, you have to have a large capital, an established platform, a bank account to which your earnings are deposited so you can withdraw it in your country of origin or send to your country of destination such as the Philippines. In this case, the receiving company in the destination country should also have a bank account.

If the claims are true, these companies must have been moving in large amount of money via bank transfer.

No, Western Union and Moneygram do not accept so much money that can be used for the pay outs.

It should pass the banks, but large money coming in also means the Anti Money Laundering Council must have been alerted.

But so far, the AMLC has not been alerted, meaning there must have been no such large amount of money being transferred to your investment company's bank account, which it will use to pay you and other investors out.

It can also mean it did not have any bank account, therefore, there is also no forex trading.

So this would leave us with a single conclusion.

Investors' money just changed hands. The money that new investors put in goes to the old investors. With more investors coming in, the pay outs remained.

But when the chain gets disrupted, all these things will crumble....like a cookie.

So if any of these investment companies want to challenge my conclusion, all they have to do is present to me a verified bank account statement and the tax payment certificate they got from the Bureau of Internal Revenue.

If they can show me these and I find it very convincing, I might put in money too -- even pawning the only car I got.

I'll do everything to raise cash to invest because if the documents would show favorable results, I know I'll recoup my investment in a short period of time.

But if they cannot present me the documents I have asked from them, it is clear that they are scamming people of their hard-earned money -- similar to what Mr. Charles Ponzi did in the US in the 1920s to take money away from his victims.