16-05-2013, 05:10 PM
I saw this in online newspaper so i am sharing. I think it is 100 percent correct point by point.
Similarities between Sunfeast’s outsourced jobs and a Ponzi scheme
Sunfeast insists it’s a genuine company with a viable business model. We leave it to the readers and jittery investors to decide
Ponzi scheme
1. A ponzi scheme is an investment scam where investors are promised, and seemingly delivered, unusually high rates of return.
2. In a ponzi scheme, scam artists pool funds received from victims, living off some and paying a portion back to the investors as interest or gains.
3. The scam artist supplies the victim with documentation or account statements making it appear as if their investment is still intact and earning an exceptional rate of return.
4. Blinded by the returns, investors sink in more money as well as publicise this great investment to their friends and other potential investors.
5. When investors request refund plus earnings, scam artists reach a point where they cannot collect enough new money to pay off the old investors. The scheme collapses and the authorities become involved.
Sunfeast model
1. Sunfeast promised and gave unusually high returns for simple data entry jobs – something a fifth grader who knows how to type on a computer can do.
2. Sunfeast used funds from investors to expand their business (they opened their second office in Dubai in less than two years) and paid back initial investors.
3. Sunfeast issued passbooks to investors, assuring them their investments were safe, but never came out in the open about the clients who they were outsourcing jobs for.
4. Many victims XPRESS spoke to confirmed they were enticed to join Sunfeast after seeing high returns of their friends and neighbours.
5. Sunfeast job outsourcing scheme roped in thousands of investors in no time. It collapsed as quickly when some investors demanded a refund of their security plus their earnings and contacted authorities.
Similarities between Sunfeast’s outsourced jobs and a Ponzi scheme
Sunfeast insists it’s a genuine company with a viable business model. We leave it to the readers and jittery investors to decide
Ponzi scheme
1. A ponzi scheme is an investment scam where investors are promised, and seemingly delivered, unusually high rates of return.
2. In a ponzi scheme, scam artists pool funds received from victims, living off some and paying a portion back to the investors as interest or gains.
3. The scam artist supplies the victim with documentation or account statements making it appear as if their investment is still intact and earning an exceptional rate of return.
4. Blinded by the returns, investors sink in more money as well as publicise this great investment to their friends and other potential investors.
5. When investors request refund plus earnings, scam artists reach a point where they cannot collect enough new money to pay off the old investors. The scheme collapses and the authorities become involved.
Sunfeast model
1. Sunfeast promised and gave unusually high returns for simple data entry jobs – something a fifth grader who knows how to type on a computer can do.
2. Sunfeast used funds from investors to expand their business (they opened their second office in Dubai in less than two years) and paid back initial investors.
3. Sunfeast issued passbooks to investors, assuring them their investments were safe, but never came out in the open about the clients who they were outsourcing jobs for.
4. Many victims XPRESS spoke to confirmed they were enticed to join Sunfeast after seeing high returns of their friends and neighbours.
5. Sunfeast job outsourcing scheme roped in thousands of investors in no time. It collapsed as quickly when some investors demanded a refund of their security plus their earnings and contacted authorities.