A LEGACY OF SCAM-BUGS

Pt. Barnum once said, “THERE’S A SUCKER BORN EVERY MINUTE”. First there was Multitel, then Manchester Royal, then Francswiss, then there was Performance Investments (PIP) and now, it’s The Legacy Group of Companies, and if we are to believe Pt Barnum, there will be more (investment scams and their usual victims) in the future, when will we ever learn? We also have that impression, that only the less umm sophisticated (financially) fall for this kind of scam, look closely, victims of PIP, Francswiss also includes people from Dasma and Forbes, and lest we forget, the US Sub-prime also includes Wall Street as its willing victims. That quote by PT. Barnum should be expanded “THERES A SUCKER BORN EVERY MINUTE-EVERYWHERE”.
Going back to Legacy (yes it was “The Group” that I alluded to in my last blog-“Rural Banks and Double your Money Schemes”, also an article by Dr. Raval) this is one instance that we’ve been issuing warnings and dissuading friends from investing, as early as December of 2005, because some officers of the Legacy group were overheard blaming it (again) at the US Sub-prime. when actually, the problem with legacy goes back 2-3 years ago.,( the current sub-prime crisis only blew up 4 months ago). Even during that time, it already looked like a pyramiding scam. Some of my friends listened, but most didn’t, and to think that it was during those times when Francswiss and the PIP scam were hugging the headlines. I even showed them how to tell a scam. Actually I wasn’t even aware of the full extent until last march, when my Partner informed me that the Regional Director of DTI (CARAGA) was already alarmed because the total investments at Legacy in CARAGA alone had already reached more than P500M, mostly from retirees, and probably their separation or pension. In short-all the money they have in the world.
I heard they had a meeting at one of the hotels here, they were expecting officers of the company to arrive all the way from Manila to clear things or maybe assure them, but none showed up. Now they are contemplating a class suit, in the hopes that once all the assets of Legacy will be liquidated, they will be paid, and some are starting to believe a story going around that there’s an interested buyer, and once Legacy is bought, they will be paid. I wish them good luck. since we’re all intelligent to know a scam when we see one, and we didn’t fall for this one, because were not bugs (and we know the meaning of scam) still its worth remembering: ”If it’s too good to be true..it probably is”.



P.S. If you had purchased $1,000 of Delta Air Lines stocks one year ago, you would have $49 left. With Fannie Mae, you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.
But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminium recycling REFUND, you would have $214 cash.
Based on the above, the best current investment advice is to drink heavily and recycle.