It was reported in Today’s newspaper that Profitable Group, a company providing UK land investment opportunities, was being investigated by CAD.

CAD Steps into Profitable Group Case (Today Online)

The office of  Profitable Group (Plots) was closed when Today visited it yesterday.

The police declined any comments when asked.

Rumors of a raid by CAD were also circulated on the Hardwarezone forum. In the forum, investors who were not paid their proceeds on an investment opportunity called Boron were discussing methods on how to recover their money. Boron is a fuel addictive product and investors were supposed to get a 12.5% returns in a period of 6 months when they invested.

Another investment that was mentioned was called AAA.

Many of these investors could now be left high and dry.

Additional Roporting:

CAD Investigates The Profitable Group (Lianhe Zaobao)

Profitable Plots in CAD probe (Straits Times)

MAS has (through the MoneySense program), recently published a consumer warning on land banking investments.

The warning highlights the risk of investing in land banking products. It also reiterates the fact that land banking is not regulated by MAS as it involves a direct interest in real estate and not securities (such as collective investment schemes).

Interestingly, the UK’s FSA has adopted an approach that some of these land banking investments can be considered a collective investment scheme and has determined that such operators would be in breech of the financial regulation regime if they did not obtain authorisation from FSA. They have actually closed down a number of land banking companies since 2007.

They also said that “if you have entered an agreement to participate in a Landbanking collective investment scheme which is run by an unauthorised person, you may have a statutory right to recover your money and compensation for any consequent losses. This is because agreements which an unauthorised person enters into while operating, advising on or arranging for persons to participate in a collective investment scheme cannot necessarily be enforced.”

The warning from MAS must have came as a result of recent publicity in the press about some investors’ bad experience with a particular land banking company in Singapore. For those investors who had invested with a couple of these companies here (some of which had been operating in Singapore from as early as five years ago), this warning might come as “too little, too late”.

The speech by Tan Kin Lian on land banking can be found here:

Land banking speech by Tan Kin Lian

There appears to be limited recourse for the first group of buyers as it is really a willing buyer, willing seller transaction.

In any case, it remains to be seen whether the original selling company has the means to buy back all the plots from affected investors even if a judgement against the company can be obtained.

Some recent news relating to Profitable Group, a company that deals with alternative products (investments). They started a few years back promoting land investment opportunities in the UK.

None of these news has been carried in our mainstream newspaper, The Straits Times, yet. There was also some coverage in Lianhe Wanpao but the link is not available.

Drama as Investors Turn Up at Profitable Group Office (The New Paper – 25th May 2010)

MAS puts Profitable Group on its Investor Alert List (Today Newspaper – 27th May 2010)

Police summoned to settle dispute between disgruntled investors & Profitable Group (938 live – 27th May 2010)

Green Gateway Hotel Plan Turned Down in Colchester (Gazette News – 28th May 2010)

Profitable Group Slams Irate Investors (Today Newspaper – 29th May 2010)

Profitable Plots Investor Sues to Get Her $31,500 Back (Today Newspaper – 1st June 2010)

Looks like Land International Far East is another busted UK land banking scam.

Interested readers can follow the post here:

Land Banking: Land International Far East (Land Wealth Centre)

Any affected victims who would like to share his or her story with the media can email Hanqing at hanqing@sph.com.sg.