Pyramid Scam

Just lately, news on a new pyramid scam that swept investors in the internet has been in the limelight. Franc Swiss, an allegedly legitimate site has been luring investors to invest a minimum of 1000 US$ with the promise that within a few days, your moneywill double until it is multiplied beyond your imagination. Isn’t it too good to be true?? The catch is, for your money to double beyond your wildest dreams, you have to invest more and “invite” your friends to pool in their resources (a.k.a. invest). The more friends joining your circle, the more money you will make.

To attract more potential investors, the original “investors” (who by the way are nowhere to be found now) are telling the masses that media personalities and big names in the showbiz industry are investing too. Because you trust the upper investors and your friends, you deposit your hard-earned money (some even go into debt just to produce 2to 5000 US$).

I wonder why people can still be duped with this kind of scenario when in fact this type of pyramid networking was prohibited by the Securities and Exchage Commission (SEC) after pensioners lost their lifetime savings upon investing in this kind of set-up. Well, not only the pensionners but  a lot of people gullible enough to believe that their money could increase exponentially within a small time frame. I thought the bitter of the lessons in the past would be enough to deter people from investing. I suspect people did not expect the FrancSwiss to be illegitimate because their website looked so good (I saw this on TV since their website is now closed) that it appears to be true.

Now, swindled investors are filing a class suit to FrancSwiss. My question is, can they ran after the creators of the website who might be out of the country now enjoying their millions or even billions?

Lesson for all of us: If an offer is too good to be true– almost always it is really too good to be true!

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4 thoughts on “Pyramid Scam

  1. Hello TNP,

    You are absolutely right- with all the lessons from the past, it seems that there are still those who get swindled in this manner. What’s painful is that people are investing their hard-earned money in this get-rich-quick scheme… We have a saying in our country that states “walang manloloko pag walang magpaloko” (There will be no swindlers if no one will allow swindling)…Trite but true.

  2. I think it was Baladjay before, our friend was her victim…from rugs to riches and now rugs again because their victims pursued them…Good thing she turned back to God and had paid all her debts.

  3. Hi bing,

    If I’m not mistaken I think she was jailed too. It’s a bitter and painful lesson for everybody because you not only lose money but you also lose the trust of friends who invested in the “network” because of you.

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