Nooruladha’s Weblog


Investment scam (VC Gold) part 1
July 7, 2009, 7:06 am
Filed under: Investment Story, Thoughts

This is a story of mine, how did I become involved in investment (scam?) in Malaysia.

Today, I surfed and discovered this website expose tentang vc gold. Kemudian, googling result shows vc-gold.net (official website) is no longer available.

The story started when I visited my buddy who worked as a unit trust consultant (Can you guess which bank, and which office? *Only for Malaysian*). Inside his fancy office, there is one Malay lady, who should remain nameless. She talked to me, after some chatting about unit trust etc, about this new *gold investment* opportunity. She was a seller of two product, one unit trust, and the other was this gold stuff.
The story is simple, you invest in 100g gold at market value. Then, the company will pay you dividend of 3% every month, for six month. Furthermore, if the price of gold increase after the six month, you can sell it back at the company at the higher price.  So, during the time, each 1g would cost about RM100. So, dividend each month will be RM300. So, assuming the price reached 120 per gram, it means at the end of six months I should get 13180, which is roughly 31.8% profit. Mouthwatering, isnt it?
Anyway, I didnt straight away jump to buy, I asked her questions.
1. How did your company make profit? So, she answered that her company buy bulk from Swiss (It does make sense at the time that you can buy bulk cheaply, but later I realized, why would anyone wanted to buy the only scarce commodity at a discount?) She explained that their company buy the gold about 5 years ago, when the gold price is just at 50 per g. Plus, the gold that she hasnt sold, they have put them in the Ar-Rahnu investment vehicle by Bank Rakyat.
2. Is there a contract? She replied, yeah, a standard document about 20 pages long, lawyery stuff in it. Everyone will signed it, the company CEO, me, a public notary, and stamp posted it. (It was my mistake that I didnt insist bringing those to a lawyer, cause now I knew that stamp post means squat. It only means that the agreement is valid, but if the company goes down, change name, it will take forever to chase them in court)
3. Really, how does the company makes profit? She also told me that the company buy and sell 916 gold, like a local trader (Habib, Poh Kong etc).
4. Then she invited me to their main offices. It was two storey building in Jalan Ampang. The office was busy, have body guard at the front, main counter, main office. A lot of activity. She told me their clients were from all over Malaysia, some even buying 2mil worth of gold. I didnt know what to think at the time, to much information.
5. The usual coffee stuff. They bring u some coffee, maybe if you are lucky, some nasi lemak or donut.
6. She said, I have an option of bringing back the gold home if I dont trust the company. But, if I joined the Al-Rahnu program, the company will give the dividend of 3%
Lo, and behold, I bought a 100g worth of gold.
to be continued…….
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7 Comments so far
Leave a comment

Is this website you are saying is thegoldlabel.com? Have to becareful, cos recent newspaper mention about this scheme. Thegoldlabel company is too good to be true. same thing as what you’ve mentioned, was mentioned in their faq..

Comment by littlegold

Hi,

Thank you for the write up on gold scams. A friend of mine was recently conned into this and I’m desperately finding ways to get her money back.
I would like to know how you got out of this scam. (and the ending of the story, if thats ok.)

Cheers!
VJ

Comment by Vijay

Hi vijay,
sorrry to hear about your friend. As in any pyramid scheme, those who comes out earlier, is the luckier ones. As for the advice to come out of this, go to the office of the agent, as them for refund and take no for an answer. Be adamant. However, if you read the news lately, EtikaEmas has been shut down by Bank Negara for “illegal deposit taking”, which means the fund they have is being frozen. Which also means, they don’t have a license to operate as fund management. FYI, only banks and unit trust management has this kind of license. However, that is why they operate under so-called Co-operative license.

As for my story, after six month, i took everything out as I am uncomfortable. Yeah, I got some profit, but I think it is someone else’s money, not a a halal and pure return of my investment. During the time, the so-called scam is just in early stage, so they have no problem in paying me. Okay, take care now, and be safe.

Comment by nooruladha

hi guys..
im raziman frm BNM. fyi as for today gold label sdn bhd is an legitimate organization that are registered under bnm and mof. pls take note
tq

Comment by raziman

Interesting post. Thank you for posting

Comment by MikixIuy2

I’m also a victim of VC Gold investment scam…just thinking if there is any way to get back our money from Wahab….any better suggestion

Comment by tee kh

That reason we need to get a secure company.. Apparently, u all can try on Menara Standard Charted Kuala Lumpur (Jalatama Management) which also helping client to invest primarly on gold and silver, which i found out it is quite good. I think it is quite good and secure…

U can call this person which i deal with . Steven 016 2727326

Comment by kah kit




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