As a member
of Bo Sanchez’ TrulyRichClub, I
constantly receives 11 Blessings from him every month. And one of these
blessings I like is the so-called Wealth Strategies Newsletter which he sends
to every member twice a month for FREE. It’s
just the usual letter actually, but a very helpful one. Here’s one of
the tips I received from Bo Sanchez which will surely be a big help to you.
---Note---
How to Smell a Scam a Mile Away
Here’s the first rule of money: If you earn it, don’t lose it.
I’m telling you this because there have been many financial scams
in the Philippines. You need to learn how to protect yourself from a scam. It’s
useless to earn good money and then lose it all to a financial fraud.
Here are the six signs of a scam…
1.
Insane Interest Rates
Multitel (Multinational Telecom Investors Corp.), started by
Rosario “Rose” Baladjay, was probably the biggest scam in Philippine history.
Some news reports say that two million people invested in this
company—which probably reached P100 billion. Reason: This Company accepted
small investors—even as small as P10, 000. This company was so believable; they
got many military and police officers to invest.
Why? Multitel promised four percent to five percent interest a
month. They also had another offer where you could double your money in 18
months.
Did you notice? That’s 60 percent growth a year.
That’s what I call an insane interest rate.
Insanely high interest rates means a pyramid scam is going on: The
Company gets money from new clients to pay off the interest of old clients. (This
is what you call a Ponzi scheme, named after one of the most celebrated
scammers in the history of America, Charles Ponzi.) This charade continues
until there isn’t enough new money to pay off the interest rates of older
clients. Soon, everything implodes.
For example, Rose Baladjay started by promising 1.1 percent a
month interest to her investors.
But by
its very structure, you’ll need more and more money to pay older clients, so
Multitel had to keep raising the interest rates to attract more customers.
Soon, it promised five percent returns a month.
But after Multitel was shut down by the government, people didn’t
learn. Cyrus Yap Hao, who worked with Baladjay in Multitel, set up his own
pyramid scheme. He founded Royal Manchester Five (RMF). His company promised
insane high returns as well—and many more were duped and lost their money.
Through Powerhomes, they dangled the promise of P3 million in earnings
plus a house and lot. Around P2 billion of clients’ money was lost in RMF.
In 2008, FrancsSwiss did the same thing. It promised four percent
a day for 60 days straight or 270 percent returns. But despite the insanity of
those interest rates, many executives and celebrities were lured into its
bottomless pit. (I know of one Vice President who sent them P10 million and
lost it all.)
Remember, if the promised interest rates are too high, stop.
There’s something fishy going on.