Can’t answer these 5 questions? Stay clear of crowdfunding
June 23, 2016
In barely a week’s time, two crowdfunding projects have gone wrong. Investors grieved for failure to receive the promised returns and to recover their principal sums.
An investment scheme that claimed to finance a builder known as Soilwood (listed company Soilbuild Group sound-alike) has stopped paying the guaranteed 4 to 6 percent quarterly return (“Investors cry foul over builder’s crowdfunding”, Straits Times, June 11).
Another project that promised investors a generous dividend of up to 24 percent by investing in security services firm Glen Iris has been wound up last October (“Another crowdfunding scheme goes sour“, Straits Times, June 18).
Both projects are marketed by a so-called financial advisory firm Noble Consulting Group.
What puzzled me is that the victims are not the ignorant and simple-minded, but include professionals with the capital, knowledge and experience in investment. Some even come from a finance background.
Crowdfunding schemes that went belly up
Scams and defaults arising from crowdfunding investment plans are first exposed with complaints from the victims, followed by announcements of involved companies being put under MAS alert list, before finally being covered in the news... read the full version