Profitable Plots

[Musicwhiz]

This is a very sad case.......for all those who invested.

Nov 11, 2010
CAD: Profitable Plots' liabilities exceed assets
By Francis Chan, Companies Correspondent

AGGRIEVED clients of investment firm Profitable Plots yesterday gave a mixed reaction to details of a police probe that were unveiled for the first time in the High Court.

Most welcomed the news that the Commercial Affairs Department (CAD) was making headway in its investigation into the firm. Some, however, said it came as cold comfort, given that they were resigned to losing their money on British land and other investments made through the company.

'The latest update by CAD is good news, but is not of any consolation for me,' said Mr Jimmy Lim, who sunk about $100,000 into land in Britain after a sleek sales pitch by Profitable Plots a few years ago.

'It's about time the CAD made some progress - it's been a long time but the worry now is that if the company goes down because of the investigations, will I ever get my money back?' asked another investor who bought into $125,000 worth of products from the firm.

On Tuesday, details of the CAD investigation were made public for the first time during a High Court hearing related to a complaint by Profitable Plots about the seizure of its bank accounts by the police.

White-collar crime detectives had raided Profitable Plots' Stanley Street offices in August and seized cartons of documents.

They also took the firm's directors in for questioning and froze the firm's three bank accounts, which held $277,590 in total.

The High Court has since ordered a partial release of the firm's accounts held by the CAD, and directed the Attorney-General's Chambers (AGC) to foot Profitable Plots' legal bill for the case.

The CAD was also asked by Justice Lee Seiu Kin to provide an update of its investigations on Dec9, so the court can decide if it should retain custody of Profitable Plots' bank accounts.

A report dated Oct 12 - submitted by the CAD as part of court proceedings - showed that 106 complaints related to $9.5 million worth of investments were made against the firm.

The CAD report revealed that Profitable Plots' liabilities and obligations to its clients far exceeded its assets, giving the police grounds to suspect that the firm's investment schemes were 'introduced to defraud its clients'.

Set up in 2005 by a group of British expatriates, Profitable Plots became known for its TV commercials featuring former professional footballers urging viewers to 'Buy UK land'.

Business was brisk in its early years, with the firm holding regular roadshows at major shopping malls and advertising extensively on cable TV football channels.

But things went sour last year after some investors began complaining that returns from their investments were either delayed or held back.

A group of 12 investors stormed Profitable Plots' premises in May to demand answers on when they could get their money back, while another 40 turned up at Speakers' Corner in June to protest against the firm.

Initially the firm's directors brushed off the complaints, reportedly saying they came from people who did not understand the complexities of land investing and Britain's land laws.

Lawyer Wendell Wong of Drew & Napier, who is representing Profitable Plots in the matter against the AGC, told The Straits Times yesterday that his client was not facing any criminal charges from the CAD at this time.

'We took up an application to review the freezing order... no charges were filed (against Profitable Plots) yet,' said Mr Wong.

[Musicwhiz]

Profitable Plots staff to be paid due salaries
Staff of troubled investment firm to be paid due salaries: Court

Teo Xuanwei | Dec 1, 2010 6:00 AM

More money released from frozen bank accounts

SINGAPORE - Troubled land investment firm Profitable Plots, which is currently under probe, is left with only $60,000 in its coffers after the High Court released more money yesterday from its frozen bank accounts to pay off staff salaries.

The sum remaining may be all that the 106 people who went to the Commercial Affairs Department (CAD), claiming that their investment returns were either delayed or unpaid, can recover should allegations of fraud stand against the firm.

The 106 investors have collectively invested some $9.5 million. Profitable Plots has some 1,000 clients here.

No criminal charges have been pressed against the company but three of its directors are believed to be assisting investigations by white-collar police following a raid on its Stanley Street premises in August.

According to court documents, a CAD report dated Oct 12 said Profitable Plots' liabilities and obligations to clients far exceed assets, which gives "grounds to suspect that (the company's investment) schemes are introduced to defraud its clients".

Profitable Plots lawyer Wendell Wong told the court yesterday that, according to calculations, salaries owed to his client's 39 employees, including Central Provident Fund contributions, amount to nearly $218,000.

This is $61,000 more than the amount reported when a High Court allowed a partial unfreezing of the company's three Citibank accounts last month.

Urging the court to release more money, Mr Wong said these employees were let go in the first week of September and have not received their pay since August.

Deputy Public Prosecutor David Khoo argued, however, that no more money should be released until next Thursday, when the Attorney-General's Chambers has to update the court on the CAD's investigations.

Justice Lee Sieu Kin acceded to Mr Wong's application, noting that investigations have not shown the employees to be complicit in any alleged fraud. These employees were left without a job through no fault of theirs and the court has to consider the financial obligations they may be faced with, the judge said.

Justice Lee also asked how much difference it would make to the purported victims even if he were to reject Mr Wong's application, since the company had only $277,000 when the CAD stepped in.

[Musicwhiz]

SINGAPORE: The Commercial Affairs Department (CAD) is at an "advanced stage of investigation" into 229 complaints made against Profitable Plots Pte Limited (PPPL), a District Court heard Wednesday morning.

The complaints were from investors alleging that the company had cheated them into investing various sums of monies, totaling about S$23.5 million, in various schemes promoted by Profitable Plots.

Investigations began last August, with the Public Prosecutor seeking to freeze about S$55,548 seized by CAD for a further six months, Wednesday morning.

In his two-page report, investigating officer, Assistant Superintendent (ASP) Ho Ban Hsiung, said the Department has sought assistance from overseas law enforcement agencies and are awaiting their replies.

ASP Ho added, "We are also in the process of appointing an accounting firm to prepare an expert report on aspects of PPPL's business."

Deputy Public Prosecutor, Christopher Ong, added that CAD's investigations would probably be concluded within six months.

But Profitable Plots' lawyer, Mr Wendell Wong, argued for the immediate release of the money held by the white-collar police, adding that the company's directors have found it increasingly impossible to conduct its daily affairs.

District Judge Roy Neighbour said he would only grant the Public Prosecutor a further four months to complete their investigations.

-CNA/jl

[Musicwhiz]

Mar 10, 2011
INVESTIGATION INTO PAYOUT COMPLAINTS AT INVESTMENT FIRM
CAD wrapping up Profitable Plots probe
Court expects update by July 8; accounting firm to be appointed to case
By Francis Chan, Companies Correspondent

INVESTIGATIONS into an investment firm that has come under fire from hundreds of investors demanding payouts are expected to be wrapped up soon and a decision taken on whether to press charges.

District Judge Roy Neighbour yesterday ordered the Commercial Affairs Department (CAD) to provide the next update on its probe into Profitable Plots on July 8.

The court had earlier heard that CAD investigations were in an 'advanced stage and likely to be concluded soon'.

Profitable Plots came under the scrutiny of the white-collar cops after clients complained that the firm was dragging its feet over payouts that were due.

The clients - mainly retail investors - had put their cash into land in the United Kingdom and the Philippines and an industrial lubricant called Boron, among other investments sold by Profitable Plots.

In December, the CAD reported that it had received 174 complaints relating to $18.5 million worth of investment schemes the firm promoted.

That number has now risen to 229 complaints involving about $23.5 million.

No charges have been laid against the firm's directors but the prosecution maintain that the 'principal investments and/or returns owing to the complainants upon maturity... had significantly exceeded the amount seized from the bank accounts'.

Profitable Plots posted a consolidated group revenue of $35.4 million last year and $32.8 million in 2008, said the CAD in earlier hearings.

An earlier CAD report on Oct 12, submitted as part of court proceedings late last year, showed that Profitable Plots' liabilities and obligations to clients far exceeded its assets.

This gave police grounds to suspect that the company's investment schemes were 'introduced to defraud its clients'.

The police are in the process of appointing an accounting firm to help produce an expert report on the case and are also waiting for responses from foreign law enforcement agencies that are assisting in the investigation.

When it was set up here in 2004, Profitable Plots was known for its TV commercials featuring former professional footballers urging viewers to 'Buy UK land'.

It came to the attention of the authorities earlier last year when a dozen angry clients stormed its offices demanding what they claimed were overdue payouts.

The CAD raided the Profitable Plots' Stanley Street headquarters on Aug 11 and seized boxes of documents.

The following day, the CAD froze the firm's three Citibank accounts that held a total of $277,590.

That amount was reduced to $55,548.42 after Profitable Plots managed to get the courts to order the release of some funds to pay staff wages.

Lawyer Wendell Wong of Drew & Napier, who is representing Profitable Plots, applied for the release of the remaining funds yesterday.

He said the cash would go a long way in helping the firm, which may be facing civil proceedings, stay afloat.

'Liquidation is a very real option that has to be considered,' said Mr Wong.

'The company is now grasping for air; if it is starved of oxygen, it dies.'

The prosecution, however, argued against the release of the funds, saying the money is potentially the proceeds of crime and should not be returned to Profitable Plots.

Justice Neighbour agreed.

The case has been fixed for a hearing on July 8.

franchan@sph.com.sg

[Musicwhiz]

Sometimes I wonder if the current crop of "Gold" companies will also end up like Profitable Plots?

Business Times - 26 Apr 2011

SIAS looks into plight over Profitable Plot

Meeting open to shareholders who are SIAS members

By MICHELLE QUAH

THE Securities Investors Association of Singapore (Sias) will be meeting disgruntled investors of Profitable Plot next month 'to understand their plight'.

The unhappiness that some investors have had with the investment firm - once well known for its tagline, 'Buy UK land, we did!' - has been much publicised in the media.

Their complaints, dating back to the middle of last year, have resulted in the white collar crime police investigating the claims. The Commercial Affairs Department (CAD) told the court last month that its probe was in an 'advanced stage and likely to be concluded soon'.

SIAS said yesterday that it 'has been aware of the plight of investors, who are SIAS members, that have invested their hard-earned monies in various Profitable Plot products'.

The minority rights champion went on to say: 'While the company is currently under CAD probe, investors are anxious about their investments. It is estimated that there are 1,500 local investors and a total of 4,000 investors affected globally.'

The CAD, after raiding Profitable Plot's office on Aug 11 last year, froze the firm's three Citibank accounts - that held a total of $277,590 - the next day. That amount was subsequently reduced to $55,548.42 after Profitable Plot managed to get the courts to order the release of some funds to pay staff wages.

SIAS said that the investors claim they have been kept in the dark by Profitable Plot with respect to their investments.

'A group of Profitable Plot investors has approached SIAS to seek help to fight for their rights and assist in the recovery of their investments,' it said.

'Some of the investors say that they should not have been sold these products in the first place. According to them, they have placed their hard-earned retirement funds and savings into investment schemes that have not been contractually honoured.

'Investors claim that the risks were never fully explained and were presented with promises of high returns. Now, they say, they are in a quandary.'

SIAS said that it was conducting a dialogue session with all Profitable Plot investors on May 28, at 7pm, at the MND Auditorium, 'to understand their plight as investors and to discuss possible actions they may choose to take to recover their investments'.

It also said that it would assist with legal counsel.

It said that concerned Profitable Plot investors who wish to attend this dialogue session can do so by registering online at the SIAS website (www.sias.org.sg), but that attendees must be SIAS members.

The case will next go before the courts on July 8.

Profitable Plot started out in Singapore as a strategic land investment firm by a group of British expatriates in 2004.

Profitable Plot is part of global investment entity Profitable Group, which has offices in Malaysia, Canada and Brunei, among other countries.

[lonewolf]

Not trying to OT but why do I get the feeling that this is an recruitment exercise for SIAS??

If 2/3 of the '1500 local investors' signed up with SIAS to 'champion their rights', that's 1000 x $28 = $28,000 into SIAS's kitty.

I dun know why but SIAS reminds me of CASE. It irks me that we need to be 'members' before they will take up our cause.

Just out of curiosity, is anyone here at VB SIAS members?

Hopefully when the 'lemon' law get past, CASE can go the way of the dinosaur. But I doubt it.

As for Profitable Plots, I wonder if those football pundits who declared 'we did!' are also caught with their pants down.

[Musicwhiz]

Look at the section in bold - this is a really a sad case, with retirees possibly losing ALL their life savings! Hence, it is important to know what you are investing in!

May 25, 2011
Don't keep clients in the dark: Sias
Profitable Plots urged to communicate with investors, explain itself
By Yasmine Yahya

A BODY championing the rights of retail investors has urged the directors of Profitable Plots to communicate with its clients immediately, instead of leaving them to wonder about what has happened to their money.

The Securities Investors Association of Singapore (Sias) is also calling on the authorities to look into regulating alternative investments such as land banking - one of the areas of investment that Profitable Plots was involved in.

Land banking is the practice of purchasing undeveloped land with the intention of holding onto it and later selling it, usually to a developer, at a profit.

Profitable Plots has been under probe by the Commercial Affairs Department (CAD) since last August, when it received complaints from investors claiming the investment firm owed them money.

By March this year, the white-collar police had received 229 complaints relating to $23.5 million worth of investments.

The company's clients, mostly retail investors, had put their money into various investments offered by Profitable Plots, including land in Britain and the Philippines, and an industrial lubricant called Boron.

As part of proceedings relating to the freezing of company assets, District Judge Roy Neighbour has ordered the CAD to provide the next update on its investigation on July 8.

However, investors are hoping that they will hear from Profitable Plots sooner, as they have been kept in the dark about the state of their investments, said Sias president David Gerald.

One of these investors, 48-year-old business owner Raj Chotrani, told The Straits Times that investors have been trying to speak to the company directors since the middle of last year, when they realised they were not receiving payments owed to them. 'If a company fails to make a payment or can't honour a contractual agreement, they have to explain why - that's the decent thing to do,' he said.

Mr Gerald said that since the CAD raided the company's Stanley Street office in August last year, attempts to contact the firm's directors have been met with a standard reply by the directors' lawyers, saying that they cannot communicate as investigations are under way.

'This conduct compelled investors to believe that the company's standards of corporate governance were abysmal, and even frightened a few that their investments are being mismanaged,' he told a media briefing yesterday.

Among other things, the investors want to know what went wrong and whether the company had ever intended to honour its promise to pay a 12.5 per cent return on their investments in Boron and a real estate project in the Philippines.

They would also like Profitable Plots to explain why its auditors were changed thrice between 2005 and 2009, and why its company secretary was changed several times.

'This case raises the need for land banking investments to be regulated,' noted Mr Gerald. 'It would appear that anyone can set up such businesses in Singapore, easily leveraging on the brand name of Singapore, and citizens and foreigners who have confidence in our system invest without hesitating on the promise of higher returns.'

He noted that an estimated 1,500 Singaporeans and 4,000 foreigners are believed to have invested their money with Profitable Plots.

Some of these investors are retirees who have sunk significant amounts of their life savings into investments with the firm, he said.

Several of the foreign investors told Sias that they had chosen to invest with the firm because it was based here, and they were confident about Singapore's reputation as a financial hub with strict enforcement of regulations, he added.

When asked if the Monetary Authority of Singapore (MAS) would consider regulating land banking investments, a MAS spokesman pointed The Straits Times to a guide on land banking on its website.

The guide says that the Securities and Futures Act (SFA) and the Financial Advisers Act (FAA) give MAS regulatory powers over financial markets.

'However, land banking investments typically involve investors acquiring direct interests in real estate rather than securities related to real estate. As such, land banking investment typically falls outside the scope of the SFA and FAA,' the guide adds.

yasminey@sph.com.sg

[Zelphon]

How about Walton Land Banking??

[Drizzt]

Walton seems to be going strong. my friend works for Walton

[Musicwhiz]

Business Times - 02 Jun 2011

Profitable Plots responds to investor concerns with statement

CAD probe ongoing; clients still own products bought

By MICHELLE QUAH

(SINGAPORE) The directors of Profitable Plots - the land banking company currently being investigated by the white-collar crime police for allegedly not paying its investors - have responded to calls from Singapore's minority rights group to explain themselves to their investors.

The Securities Investors Association of Singapore (SIAS) last week urged the directors of Profitable Plots to communicate with their investors immediately; SIAS president and CEO David Gerald said that, despite investors' constant complaints that the company had not explained its failure to meet the guaranteed annual payments, the directors had never even called a public meeting with investors to give reasons for the defaults.

In a statement yesterday, the directors of Profitable Plots said: 'The company would like to place on record that they have received no communication of any sort from SIAS. The company has, however, received over 700 enquiries from clients and has replied to all of these enquires. The company had consulted its lawyers on the nature of reply to be furnished given that the CAD's (Commercial Affairs Department) investigations are still ongoing.'

The directors added that 'many clients have asked about the status of the products they purchased from the company'.

They said 'the company can inform its clients that a contract to sell a major piece of land in the Philippines was signed on Aug 4, 2010; was notarised in Singapore on Aug 5, 2010; was witnessed and sealed by the Philippines Embassy in Singapore on Aug 6, 2010; was sent to the Philippines on Aug 7, 2010, and arrived in the Philippines on Aug 10, 2010.

'CAD raided the offices of the company on Aug 11, 2010, and removed all documentation of the company. On Aug 12, 2010, the CAD froze all bank accounts belonging to the company. The CAD's investigations from Aug 11, 2010 have led to the suspension of the contract (signed on Aug 4) by the purchaser. The purchaser has informed the company that it will reopen negotiations with the company only after CAD investigations are completed,' the directors said.

They said the CAD investigations were also partly to blame for the company not holding an annual general meeting (AGM) or filing a statutory annual return - which caused three directors to be fined $1,000 each, a fine they paid on May 30.

The statement said the return could not be filed because the necessary documents had been seized by the CAD, while the company's bank accounts were frozen.

'The directors were placed in an impossible position as they were unable to finish the audit and hold the AGM. Not all the directors of the company were charged with the offences,' it said.

It went on to say that 'the directors of the company have continued to work, at their own cost, to protect the interests of the clients and the company'.

'The company can confirm that no clients have lost ownership of the products they purchased from the company. The company will endeavour to release further information as and when appropriate. The company will not, however, be communicating with groups claiming to represent clients who have obtained client details through illegal means or blogs populated with comments by unidentified persons,' the directors' statement concluded.

Profitable Plots was created in Singapore in 2004 as a land investment firm, and was made famous by a series of advertisements which featured football celebrities on and off the pitch urging people to 'Buy UK Land! We did!'.

Previous reports have estimated that about 1,500 Singaporeans and 4,000 foreigners have invested in Profitable Plots. One of these investors, 48-year- old business owner Raj Chotrani, told The Straits Times that investors have been trying to speak to the company directors since the middle of last year, when they realised they were not receiving payments owed to them.

Mr Gerald of SIAS said last week the case highlights the need for land banking investments to be regulated.