Failed developer Ralan "a ponzi scheme that targeted Chinese buyers"

Discussion in 'Property Market Economics' started by Waterboy, 15th Aug, 2019.

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  1. Waterboy

    Waterboy Well-Known Member

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  2. Beano

    Beano Well-Known Member

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    What did they offer the purchasers to release the deposit early ?
    So the people that said no to the early deposit release lost nothing?
     
  3. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    I read somewhere that they were offering returns of 15%pa in exchange for releasing deposits or larger than usual deposits.
     
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  4. Waterboy

    Waterboy Well-Known Member

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    Returns that are probably too good to be true.
     
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  5. SatayKing

    SatayKing Well-Known Member

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  6. virgo

    virgo Well-Known Member

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    I wonder if Ralan is the only property group that employs this type of backend 15% strategy?

    In the last few years, there has been a few "interesting" buyer's companies/groups in Sydney that mainly target the Chinese community...and i am sure they are pretty "innovative" too:)
     
  7. sash

    sash Well-Known Member

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    I see this all the time.....the Chinese community seems to also trust only their own people...which adds to misinformation. The Chinese also seem to have a pack mentality to investing which is not good. Not good..but clearly shows that some of it may be language/communication related.
     
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  8. Gen-Y

    Gen-Y Well-Known Member

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    It isn't just the Chinese mentality.
    I have seen it with Arabs, Jews, Indians, Malays just a name a few groups. I am sure I have left out a few groups in there. Feel free to chime in.
    Investment congregation thinking is fairly normal as they see their people doing it.

    Monkey see, Monkey do.... :rolleyes:
     
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  9. Sackie

    Sackie Well-Known Member

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    Hard to generalise. Alot of these ' monkey' communities are very close and leverage information/resources/knowledge to support each other to succeed. I can specifically speak to the Jewish community being experts at doing this and doing it very successfully.
     
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  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    This strategy is common to most ventures that are about to fail. They seek access to the deposits as lender of last resort finance. They could promise 30% as its unlikely that the project will survive at that point unless a major financier can be misled. They most likely had already sought a new venture partner and failed.

    Often certain ethnic groups are targetted as a means to achieve trust and it makes detection harder since ASIC etc tend to rely on english language information. They also try to infliltrate church groups etc Classic spruiker acts. when you build a house of cards. People start pulling out the bottom cards and the inevitable occurs.
     
  11. Human

    Human Active Member

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    Syndicated Property Investment !!!
     
  12. sash

    sash Well-Known Member

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    Agreed..but the Chinese are the worst..they are like sheep...definitely seeing the ethnic masses do it.....but from a legal perspective...they can try to get them under unconsionable conduct. But no good if they are bankrupt...
     
  13. Blueshoes99

    Blueshoes99 Well-Known Member

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    When things are too good to be true you better ask a million questions and do your due diligence on the matter. 15% return? Get real people. Major red flag alert.

    Also Ralan required to get a license from ASIC as they’ve sourced investor money but they didn’t!
     
  14. Waterboy

    Waterboy Well-Known Member

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  15. Blueshoes99

    Blueshoes99 Well-Known Member

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    Just watched the 7:30 report. Poor people. Life savings - gone
     
  16. Empire

    Empire Well-Known Member

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    If they have been in business 20+ years you would be inclined to trust them.
     
  17. Waterboy

    Waterboy Well-Known Member

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    Bernie Madoff's US$20 Billion Ponzi Scheme has gone undetected from early 1990s to 2008.

    He was sentenced to 150 years in prison with restitution of US$170 billion.


    [​IMG]
     
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  18. Blueshoes99

    Blueshoes99 Well-Known Member

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    I understand your point but even with my stock holding I run through due diligence every few months and understand if I should continue to hold them.

    Plus it’s 15% return... like this was a major ‘Santa claus’ is real situation and Red flag alert. Beep beep whoop whoop evacuate now evacuate now.
     
  19. ms420

    ms420 Well-Known Member

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    Where are these communities congregating? Any online forums or offline?
     
  20. virgo

    virgo Well-Known Member

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    Many years ago, i read that when one Jewish boy reaches Bar Mitzvah(?) age, his father would reach out to all his own friends ; the boy would have a pick to any of the business of these friends that he would be interested in...he would then be allowed to follow that Uncle for a period of time to see and learn...

    Then the process repeats itself whenever someone else's son comes of age...

    That way, the knowledge and wealth keeps circulating tight within their own community...
     
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