jokach
September 14th, 2005, 06:37 PM
Here is another excerpt from the ireland newspaper "The Sunday Business Post" concerning PIPS. I know Ireland is particularly interested in the PIPS scam since many of their residents were sucked into the scheme and invested heavily in it. This article is interesting because it presents some of the promises, and marketing nonsense the PIPS team claimed in order to get people to signup ....
Reposted from:
http://www.sbpost.ie/post/pages/p/story.aspx-qqqid=7857-qqqx=1.asp
Pyramid scam promised returns of over 14,000%
11 September 2005 By Louise McBride
The promoters of an international pyramid scheme, which conned people in Co Meath out of at least €2 million, told investors they could pay off a €200,000 mortgage in two years by investing just €20,000.
Investors were promised returns of more than 14,000 per cent a year. At least 500 locals in Kells and surrounding areas were caught out by the Malaysian-based People in Profit System (PIPS) pyramid scheme.
Most lost between €3,000 and €4,000, but some lost as much as €40,000. Investors were invited to lend €450 or more to PIPS for about six months.
Loans were to be repaid at a rate of 2 per cent interest a day.
At that rate, a loan of €1,000 would have earned about €21.6 million in two years. The pyramid scheme was introduced to Kells last year by a local man.
One investor, who lost €2,000, said that money from the original PIPS scheme dried up last December. To cover their losses, some investors encouraged other locals to invest in the scheme, and then pocketed the money, he said.
“At least six locals pocketed between €150,000 and €200,000,” said the source.
In an e-mail apparently sent from a PIPS convention in Hawaii, the man who introduced the scheme to Kells said investors could pay off their mortgages within two years by depositing 10 per cent of their outstanding mortgage balance into the scheme.
He also claimed that PIPS supported international humanitarian efforts, including a “global flying hospital'‘. A spokeswoman for the Money Advice and Budgeting Service in Kells said that a lot of families had been caught out by the scam.
“We would definitely expect to see the repercussions of this before Christmas,” she said.
jokach
Reposted from:
http://www.sbpost.ie/post/pages/p/story.aspx-qqqid=7857-qqqx=1.asp
Pyramid scam promised returns of over 14,000%
11 September 2005 By Louise McBride
The promoters of an international pyramid scheme, which conned people in Co Meath out of at least €2 million, told investors they could pay off a €200,000 mortgage in two years by investing just €20,000.
Investors were promised returns of more than 14,000 per cent a year. At least 500 locals in Kells and surrounding areas were caught out by the Malaysian-based People in Profit System (PIPS) pyramid scheme.
Most lost between €3,000 and €4,000, but some lost as much as €40,000. Investors were invited to lend €450 or more to PIPS for about six months.
Loans were to be repaid at a rate of 2 per cent interest a day.
At that rate, a loan of €1,000 would have earned about €21.6 million in two years. The pyramid scheme was introduced to Kells last year by a local man.
One investor, who lost €2,000, said that money from the original PIPS scheme dried up last December. To cover their losses, some investors encouraged other locals to invest in the scheme, and then pocketed the money, he said.
“At least six locals pocketed between €150,000 and €200,000,” said the source.
In an e-mail apparently sent from a PIPS convention in Hawaii, the man who introduced the scheme to Kells said investors could pay off their mortgages within two years by depositing 10 per cent of their outstanding mortgage balance into the scheme.
He also claimed that PIPS supported international humanitarian efforts, including a “global flying hospital'‘. A spokeswoman for the Money Advice and Budgeting Service in Kells said that a lot of families had been caught out by the scam.
“We would definitely expect to see the repercussions of this before Christmas,” she said.
jokach