05-60 Is ‘PIPS’ (People in Profit System) a Pie in the Sky?
Thursday 17 March 2005
In recent weeks, the Australian Securities and Investments Commission (ASIC) has received inquiries and complaints about promotions for a wealth creation scheme called PIPS or People in Profit System.
PIPS website asserts that members can design their own individual wealth creation plan. As an example, it is represented that returns of at least 2% every trading day can be earned from one particular 'wealth creation' option. That's more than 14,000% each year if compounded daily over 252 trading days. At that rate, if you put in $1,000, you would have $21,601,632 in just two years.
'Not surprisingly, PIPS has already received several nominations for ASIC's 2005 'Pie in the sky' awards,' ASIC's Executive Director of Consumer Protection, Mr Greg Tanzer said.
Apparently based offshore, PIPS is promoted over the internet and in face to face meetings arranged by local agents. Information received by ASIC suggests that PIPS has recently become active in Australia.
'As result of public inquiries and complaints, ASIC has already begun inquiries into this scheme, and we invite anyone who has information about its Australian promoters to come forward and assist us. Just email us at infoline@asic.gov.au or call 1300 300 630,' Mr Tanzer said.
'If you want to invest money, deal with licensed Australian financial services businesses. That way, you have far more protection if anything goes wrong.'
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