I don't want to be a killjoy when it comes to investing, but I've been called as such. I don't mind because I am just protecting myself and my finances. With the pandemic and the strain that it has brought upon our pockets, it's but natural for us to look at other sources of income. However, we still need to be mindful - extra mindful actually because these are also the times when others take advantage of the gullible and desperate.
This came to mind because a lot of people from my province got scammed. It was basically a Ponzi scheme that they called "repa." I don't know what that means, but admins of the so-called "repa" scheme ran away with millions of pesos. Now, they are nowhere to be found. I also don't understand this since our province is a small island province. It should be quite difficult to run away and hide, especially with the stricter quarantine regulations in place.
I feel for the victims. I'm not one who would say "I told you so" to people who are already worried and desperate. Their desperation is evident on my FB feed. These days, there are too many rush sales of property/land, gadgets, and even furniture so that they'll be able to pay those who bought slots from them.
From what I understand, there is one overall administrator or head of this repa scheme. Then, there are administrators or admins who are the ones who sell "slots." To illustrate, let's say Admin A asks X to invest his hard-earned savings, say 100,000, with the promise of turning it to 150,000 the next month. Isn't that amazing? The interest rate is through the roof! If X is willing, then Admin A has 100,000 already, right? Then Admin A asks another person, say Y, to invest another 100,000. He convinces Y, and then moves on to Z. Let's say Z is skeptical and asks for proof. So then, Admin A, who now has 200,000 from X and Y, will then give the 150,000 (of the 200,000) to X. X tells Z that it's absolutely legit! So, Z is then convinced and invests his 100,000 as well. The process goes on and on, but this cannot be sustained as the money that goes out is so much higher than the amount that is collected. The money is never invested in actual stocks or bonds. It is only redistributed. Once it all crashes down, only the head and perhaps a select number of admins will get the money.
What irks me is how others seem to find this funny. How could they find humor in people's distress? How could they be so unfeeling? Why do they have to put salt in the wounds of the desperate who are perhaps only clinging to a sliver of hope? What if, with that one mean remark, an affected individual would then choose to end his life? Who then should be blamed? Would this still be funny?
Sadly, I've seen many of my acquaintances on FB poke fun at the victims of this Ponzi scheme. Some are even supposedly respected and influential individuals. It makes you think twice about what makes a person respected, right? Influential, well, so many have that capability these days, even teenagers. But what is influence without compassion?
I pray that the victims will find justice soon. I hope that they'll get their money back, although it seems impossible now, especially since there are rumors that the backer of this scheme is someone who holds a high office in the province. (So high that he/they were even able to stop a national TV station from doing a story about this scheme). How scary if it's true. But it does reiterate the message that those in power will continue to become more powerful, while the masses will continue to suffer. How unfair is this world? I could scream in frustration, but nothing will happen. Nothing will change. Society will always favor the rich and powerful.
