Sunday, December 17, 2006

Wikipedia’s definition on HYIP

Wikipedia’s definition on HYIP

A High Yield Investment Program, or HYIP, is a purported investment program normally offered via the Internet. HYIPs typically accept investments of $500 or less while promising high returns
No HYIP has, as yet, survived for very long without turning out to be a scam. HYIPs are Ponzi schemes, in which new investors (usually unwittingly) provide the cash to pay a profit to existing investors, which they typically then withdraw leaving nothing to pay the new investor. This approach allows the scam to continue as long as new investors are found and/or old investors leave their money in the scheme, known as compounding (because even higher profits are promised).

HYIPs are frequently advertised in HYIP monitors (see below), spam emails, forums, mailing lists and Google AdWords. People are typically given a commission (for example, 9% of invested funds) when they provide a referral of a new customer.

HYIPs typically are not based in places such as the United States, western Europe, or Japan - which have strong enforcement against unregistered investment opportunities. Most HYIPs disclose little or no detail about the underlying management, location, or other aspects of how money is to be invested, and relatively little information (other than asserting that they do various types of trading on various stock and other exchanges) on how they actually generate the returns they purport. They are sometimes presented with some form of an emotional appeal, appeals for faith, and promises that they will help investors achieve financial freedom.

Arguably, the largest HYIP scam that has existed on the internet was PIPS (People in Profit System or Pure Investors)[1][2]. The investment scheme was started by Bryan Marsden in early 2004, (according to the Wayback Machine record of and spanned more than 20 countries. PIPS was investigated by Bank Negara Malaysia in 2005 which resulted in Marsden and his wife being charged in a Malaysian court with 97 counts of money laundering involving more than RM77 million - US$20 million - (copy of New Straits Times article dated 11 Oct 2006).

The introduction of e-currencies has made it possible for HYIPs to operate on the internet and cross international boundaries, and to accept large numbers of small investments. HYIPs usually accept e-gold, e-bullion, INTGold, and until Feburary 2006, StormPay.


Check out the above write up in red. Malaysia Boleh at it again, this guy Bryan Marsden – (lucky not Malaysia another orang putih using our country to do their dirty deeds)
set up a really profitable investment scheme that rack in 20 million USD from all over the world by setting up base here in Malaysia. Below is a copy of news article from the New Strait Times on the above case.

Dirty money accused faces 7 more charges 11 Oct 2006

SEREMBAN: A British national and his Malaysian wife, facing 97 counts of money laundering amounting to RM77 million, had their bail reduced by RM100,000 on appeal yesterday.

After hearing arguments from the prosecution and defence counsel, Sessions Court judge Allaudeen Ismail allowed the two — Bryan John Marsden and Phan Sew Ken — bail of RM400,000 instead of RM500,000 imposed when they were first charged on Aug 30.

Marsden, 58, had appealed for his bail to be reduced to RM100,000 and Phan, 50, asked the court to set hers at RM50,000.

They were each charged at the Sessions Court here with 41 counts of collecting funds, totalling RM26.7 million, from illegal online activities.

Later, Marsden was taken to the Kuala Lumpur Sessions Court to face seven more charges involving funds totalling RM7 million. All the offences were allegedly committed between Aug 12, 2003 and Jan 4, 2005.

These offences, under Section 4(1) of the Anti-Money Laundering Act 2001, are punishable by a fine of up to RM5 million, or a maximum of five years’ jail, or both, on each count.

On Sept 19, they were back at the Sessions Court here to face another six charges of accepting a total of RM11.78 million.

The couple allegedly committed the offences between Jan 4 and June 14 last year at the EON Bank in Taman Semarak, Nilai, near here.

Allaudeen fixed Nov 24 for re-mention of the case.


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