What’s Forex 3D and why are so many people being deceived?

Forex-3D is the name of a foreign currency futures investment project created by the forex brokerage firm “RMS Familia”. Founded in2015, the company advertises to invite the general public to invest in forex futures with returns. Approximately 10% per month from the required minimum investment of 5,000 baht due to attractive returns. Many people are interested and invested in this project. Use the same method as the previous Mae Manee project. Investors get good returns as promised, enabling them to encourage them to invest more. At the same time, the investors will receive an additional5% commission if they are able to persuade new investors to join the Forex-3D program.

Meanwhile, the investors need to create a personal profile to increase their credibility. Buying expensive things makes people understand that this investment will earn much money, including recruiting many celebrities in the entertainment industry to act as brokers and persuade others to invest in this business. Which during the peak of this business? There are tens of thousands of people participating in this project. with a value of tens of billions of baht.

However, in 2019 the company started to experience liquidity problems and began to default on paying returns to some customers. Because new investments are reduced and they could no longer pay all the returns to investors. The liquidity problem intensified, until many of the investors decided to file complaints with the Justice Ministry, urging the Department ofSpecial Investigation to inspect the company.

As a result, a large number of investors and solicitors have been searched. Some of them are famous celebrities who use their own reputations to persuade people to be interested and to invest. Some people are not famous, but they buy expensive items as a credit to defend themselves and show the general public that this investment can make a lot of money. Thus, making people believe and invest a lot.  When people invest a large amount of profit. Therefore, the company's internal finances began to lack liquidity, causing some investors to lose money and began to complain.

According to Justice Minister Somsak Thepsuthin, 9,804 investor shave lodged complaints against the company since 2019, demanding compensation for damage estimated at 1.9 billion baht. About 570 million baht in assets, which include condominium units, land title deeds, cars, and bank accounts, have been impounded. 25 suspects have been indicted. And16 more people are to be questioned by DSI officials for alleged involvement in the scam.

“Rotating savings and credit” illegal or not?

            In general, inThailand, rotating savings and credit are not illegal. But must be under the Rotating savings and credit act B.E. 2543 (1991) (Share act).  Rotating savings will be illegal in the case of a natural person being an organizer or holding any rotating savings and credit with any of the following characteristics (1)Being an organizer or holding more than three rotating savings credit associations in total. (2) A total member of all rotating savings and credit associations is more than thirty. (3) A total central fund of all rotating savings and credit associations is more than thirty thousand (4) An organizer or a person holding rotating savings and credit receives any benefit other than the right to receive the central fund in one of the specified periods without any duty to pay interest when joining rotating savings and credit. Following the -Rotating savings and credit act B.E. 2543 (1991) (Share act) Section 6,  it is forbidden to invite the public to join a revolving savings and credit association. Following the Rotating savings and credit act B.E. 2543 (1991) (Share act) Section 9.

            Besides following the Rotating savings and credit act B.E. 2543 (1991) (Share act), if there is a case of impersonating the member's name to bid on the central fund and, in the end, the organizer takes the- money from the central fund, in this case, it’s an offence of cheating and fraud. Following the Thailand criminal codeB.E. 2499 (1956) section 341.

            If there is a rescission of the contract, the organizer and the member who won the bid must proceed in statu quo, videlicet, the member who won the bid must pay back the other member, and the organizer must pay back every member. Following the Thailand Civil and Commercial Code Section 391.

            But in the case of Forex 3D is a Ponzi scheme. It is a case of tricking people into investing by deceiving them that the returns are high and guaranteed returns, and there are endless invitations or scams to invest, it is an offence of borrowing which is  regarded as public cheating and fraud. Following the- Borrowings which are regarded as PublicCheating and Fraud act B.E. 2527 (1984) section 4. Those who invite advertising to the public to invest are also offence. Following the Borrowings which are regarded as Public Cheating and Fraud act B.E. 2527 (1984) section 5.

How to observe not to fall prey to Ponzi scheme.

            Everyone has probably heard the term “the investment is the risk; investors should study the- information before making a decision to invest”.Consequently, if someone persuades you to invest and cites that investment is risk-free and get a good profit, it is impossible for investors to predict whether they will make a profit or not.Therefore, the person who will invest is obliged to study the information about the investment well, not to make arbitrary investment decisions and search for information from The Office of theSecurities and Exchange Commission.

CITATIONS

Thailand criminal code B.E. 2499 (1956)

Thailand Civil and Commercial Code

Rotating savings and credit act B.E. 2543 (1991) (Share act)

Borrowings which are regarded as Public Cheating and Fraud act B.E.2527 (1984)

“Background to the Forex-3D swindle,” Thai PBS, accessed on 5October 2022, from https://www.thaipbsworld.com/background-to-the-forex-3d-swindle/

นางสาวอริยพร โพธิใส, “การเล่นแชร์เป็นความผิดต่อกฎหมายหรือไม่” <https://www.senate.go.th/assets/portals/93/fileups/272/files/S%E0%B9%88ub_Jun/11all/all73.pdf>accessed 3 October 2022.

“รู้ทัน...แชร์ลูกโซ่ผลตอบแทนดี ๆ ที่ไม่มีอยู่จริง”<https://oomtang.gsb.or.th/kms/kms_view/19> accessed 3 October 2022.

Photo by Maxim Hopman on Unsplash 

CONTRIBUTORS

Prakrontam Musikauptam

Napatsakorn Setsaengsri

Naruechit Sailao

Kanyawee Boontuek