Bao Jing Trading, a company that offered a gold investment scheme, appears to have defaulted.
Investors with Bao Jing Trading were promised monthly returns of 1.5% to 3% through an elaborate buyback scheme. If they left their gold bars with the company, the returns could go up to even 7-10%.
At least 120 investors are now feared to have lost up to S$40 million with their gold investments.
The office of Bao Jin in Rochor is currently empty and the Malaysian owners have also since gone missing.
Many investors were also afraid to make a police report as the owners had threatened them that they would not be able to get back their money if they did so.
According to ACRA, the Bao Jing Trading was registered using a HDB flat address in Jurong East. The owner of the flat denied any links with the company.
Actually, there were already tell tale signs a couple of years back that Bao Jing was in trouble. According to this article in the Straits Times back in February 2009, an investor who invested $5000 with Bao Jing and was promised a monthly return of $150 had problems getting back his money when he tried to end the agreement.
Despite this, the company was able to continue operating for another two years and con Singaporeans of their hard earned money.
If there is any company out there that promises to give you a guaranteed monthly return of 2-3%, you better be very careful. Because if it turns out to be a scam, you are very much on your own and can forget about getting back any money.