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Latest Scam In Malaysia: Island Red Café

Recently I have received a lot of complaint about Island Red Café investment as they claimed that they stopped receiving the vouchers and cash payouts earlier this year. After careful investigation by police, it’s officially announced that this business is a scam.

island_red_cafe_scam

Here, I would like to remind all of you, before making any type of investment, you need to do your own research and don’t fully trust their business plan as they may fool you around. For example, in this situation, you need to see the Island Red Café environment first, and taste their foods & service. Check back my previous articles about Why I Don’t Dare To Invest?

Island Red Café Is A Scam Business

Island Red Cafe collects members RM6, 000 each and promised will give 5% return every month and even give you a name in the black & white agreement as a shareholder but what’s the point if they run away? In fact, you cannot do anything; you just can go to their shop and take all their business equipment such as the furniture (table, chair, fan…) after they declared themselves bankrupt.

Island Red Café Business Plan – Ponzi Scheme

island_red_cafe_scam

I think nowadays Malaysia quite popular with those making easy money opportunities, which come up with various creative ways to attract the public to invest. Many of them operate their business like Ponzi scheme, which made no or just little actual investments from people money; the earlier investors would normally get some returns, compared with the investors who join later.

Many of those who are employed as agents with these businesses do not think such schemes are illegal. They just know to think about how could they earn money from the business plan only. But, they never think about how the business is going to generate money and what is their company’s contingency plan if their business fails in the middle way.

Illegal Business Operate Anywhere In Malaysia

I could see that there are a lot of illegal business operate anywhere in our country. This is because the Malaysia government did not put their effort or there are no strict rules set by authorities to ensure that such business are legal. The most headache part is now it’s becoming somewhat of a trend already.

Those scammers can take this opportunity to navigate their way around existing laws and capitalize on their marketing strategies before the law catches up with them. So, I advise you that it’s better to think twice before making any investment especially those new businesses that we never heard before.

23 Responses to “Latest Scam In Malaysia: Island Red Café”

  1. libraco Says:

    David, nowadays the MLM business already spread across Malaysia. The culprit involve nearly every one in the system, include bankers, authorities, politicians, governments, and people. There is something wrong somewhere in this country. People simply not doing the right thing.



  2. Jayce Says:

    A scam just like Advertlets. :P



  3. Penang Tionghua Says:

    You mentioned in your above blog that:

    “After careful investigation by police, it’s officially announced that this business is a scam.”

    Could we know where (which newspaper, date, page etc) was the announcement made?

    Thank you.



  4. foongpc Says:

    I think the RM50 tax on credit card is a scam too : )



  5. BenWL Says:

    Let’s rewind back to 2001, at that time there were also many illegal MLM schemes that promised fast bucks and returns from your financial investments.

    Now it is back again with a different name! Last time I invested USD$110 for a company called Dragon Summit based in Hong Kong.

    After few months joining I was required to find downline to put money in so I can earn commissions from them. I got nobody to join under me and after few months the site was gone forever and I lost my money.

    In 2005 there’s another company called StudioTraffic. Many people got ripped off by putting money in. I almost got ripped off but got smarted from the 2001 experience and not invest any money in it. The site then got shut down and even the owner use a fake name to operate.

    Just my advice don’t believe and invest any of the online scams because once your hard earned cash is gone only you yourself to be blamed.



  6. n00b Says:

    what about contract farming emerged lately, are those consider a scam? there is one asking you to invest rm26k upfront for a cattle, the company will rear and marketing for you (~8yr), the return is base on milk produced/sales frm the cow u invested.



  7. Penang Tionghua Says:

    Reference my question on 28/10/2009 10:04pm above.

    Kindly let us know when did the police officially announced the scam as claimed by you?



  8. Florence Says:

    Anyone heard before a company named AGEL? it was based in America..they have a very innovative products which use gel suspension technology..a new trend of nutrition supplement…any idea on this network marketing company?



  9. Stanley Says:

    Hi Florence,

    Yes, Agel is in Malaysia already.



  10. Florence Says:

    Thanks stanley for ur info…is Agel in the scam list?



  11. Stanley Says:

    Hi Florence,

    I don’t know whether agel is the scam list as there is no authorised agency to publish the scam list. Mostly are mere opinion and caution.

    Agel is registered under Government with AJL license. At least if you think they have conducted any wrong doing, there is channel for you to complain.

    In conclusion, Agel is regulated.

    By the way, Agel is in business in 54 country currently and still expanding.



  12. John Says:

    Haha, why no reports on STG being a scam also.

    I heard STG was brought over by some other company.

    Now not ‘Steven’s Tea Garden’, is ‘Semangat Teknologi Gagah’. Stupid name. Haha, More like ‘Semangat Teknologi GAGAL’



  13. Stanley Says:

    Yes, better beware of the companies without AJL. They are totally unregulated. Their contracts signed with stamp is less worthless than toilet paper. At leasst toilet paper still can be used…..



  14. zulhanif Says:

    another scam like novalife…



  15. Stanley Says:

    Yes, agree. I think basic guideline is the program need to be registered under AJL or Franchise Act. Malaysia has Akta Francais 1998.



  16. Rodney McKay Says:

    Nice post, intresting read. Keep posting and I’ll come back for some more reading! Thanks!



  17. Ric Says:

    This is all because of Chinese..they lie for money



  18. Edgardo Mondier Says:

    Not long ago I published my personal e-mail address on a blog and started to get a lot of phishing emails I submit them to the phishtrackers web site this can help others recognize the scams.



  19. jenny Says:

    how about melaleuca Malaysia? is it a scam? we are required to join as a member and sign one year contract to purchase their so called non toxic products. Our commitment is 35 points monthly which comes to around RM250 – RM300. We will need to fax them our order list and payment would be by credit card, if we fail to send our order list, they will automatically send us the back up order by courier. Please help thanks.



  20. Stanley Says:

    Melaleuca has build their good reputation, but if you do not want to subscribe for the autoship, then no need to submit as you still can buy the product every month. Now I know why Melaleuca can claim that they have the highest repeat order. Many people cannot cancel it as they have sign a 1 year contract. But you can cancel if you terminate that credit card.

    Jenny, what is your purpose of joining Melaleuca? If just for purchase product, no need to be hurry to sign for 12 years order. If you are building the business, then it is up to you to decide.

    They are not a scam unless your upline misleading you or twisted the info.

    Good luck.



  21. Stanley Says:

    Latest scam is http://www.vgmc.com asking to invest for preference share with good return. But no one knows about the company, no Financial record and no address for the Mine.



  22. mr mnn Says:

    i ready invest in IRC on 2009, then now the member card blocked! so how i going to claim my money???



  23. kelvin Says:

    island red cafe boss same with this co.

    http://www.facebook.com/mbimobilemedia

    and stil got ppl join…waiting die… haha ~



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