Post by Khoo Boon Han

𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 Some geniuses believe they can outsmart the fundraising or deposit-taking law with creative engineering. Let’s go through below some some classic disguises to dodge CMSA, Companies Act, Interest Schemes Act, BAFIA, and other securities laws: 1. 𝐓𝐫𝐮𝐬𝐭 Promoter ask each investor to sets up a private trust. Investors become “settlors,” and put in cash in the trust disguised as funds to be used by beneficiaries to cover emergency death espenses. Trustee takes instructions from Investor to pour the money into the promoter’s business. Claim: “Not fundraising, just trust services.” 2. 𝐊𝐨𝐩𝐞𝐫𝐚𝐬𝐢 Promoter takes over a koperasi. Only members can contribute funds to koperasi, so they quickly shove “investors” into membership. Funds then use by Koperasi to invest in promoter’s business. Claim: “Not public, just among members.” 3. 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐏𝐚𝐫𝐭𝐧𝐞𝐫𝐬𝐡𝐢𝐩 (𝐋𝐋𝐏) Promoter forms an LLP, signs up hundreds of “limited partners” and uses their capital. Claim: “Not fundraising, just partnership contributions.” 4. 𝐂𝐨𝐮𝐩𝐨𝐧𝐬 / 𝐕𝐨𝐮𝐜𝐡𝐞𝐫𝐬 Promotors sells to the public coupons redeemable for services or products… or, if unused, buy them back at a higher price. Claim: “Not fundraising, just selling future services.” 𝐓𝐡𝐞 𝐰𝐫𝐚𝐩𝐩𝐞𝐫𝐬 𝐝𝐨𝐧’𝐭 𝐦𝐚𝐭𝐭𝐞𝐫. 𝐈𝐟 𝐢𝐭 𝐥𝐨𝐨𝐤𝐬 𝐥𝐢𝐤𝐞 𝐟𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠, 𝐬𝐦𝐞𝐥𝐥𝐬 𝐥𝐢𝐤𝐞 𝐟𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠, 𝐚𝐧𝐝 𝐩𝐚𝐲𝐬 𝐥𝐢𝐤𝐞 𝐟𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠, 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐬 𝐰𝐢𝐥𝐥 𝐜𝐚𝐥𝐥 𝐢𝐭 𝐟𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐚𝐧𝐝 𝐰𝐚𝐧𝐭𝐬 𝐢𝐭 𝐭𝐨 𝐛𝐞 𝐥𝐢𝐜𝐞𝐧𝐬𝐞𝐝 𝐚𝐧𝐝 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐞𝐝.. If you still believe these tricks work, go get a reputable law firm to issue you a written opinion and indemnify you. If you can find one that actually signs off please tag me, I’ll happily pay their legal fee. 𝘗.𝘚. : 𝘗𝘩𝘰𝘵𝘰 𝘩𝘢𝘴 𝘯𝘰𝘵𝘩𝘪𝘯𝘨 𝘵𝘰 𝘥𝘰 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘢𝘣𝘰𝘷𝘦. 𝘛𝘎𝘐𝘍. 𝘩𝘢𝘷𝘦 𝘢 𝘨𝘳𝘦𝘢𝘵 𝘸𝘦𝘦𝘬𝘦𝘯𝘥. #kbhsays