Friday, May 26, 2017

THE CASH PLUS SAGA: GREEDY, STUPID OR JUST PLAIN NAIVE?


       I remember the day when I was introduced to the Pyramid Scheme. I went with my boyfriend and his friends to a meeting at the then Oceana Hotel in downtown Kingston. The meeting was held in the room of the organizer of the Pyramid Scheme, which was filled to the brim with persons from all walks of life. Now this gentleman had the gift of the gab. By the time he finished explaining the concept of the scheme everyone was ready to offer his or her cash. Everyone was interested in making a few extra dollars. As a government worker earning $38.56 a week it seemed like a blessing in disguise. All I had to do was to convince four persons, which seemed fairly easy, to also join and I would get some extra money. This was my first experience in this sort of thing and with the encouragement of my boyfriend I signed up to be a part of it. Was I stupid, greedy or just naive to think this could work? As someone who placed bets
on horses I was already a risk taker so what was there to lose? Anyway I found my four persons and I got paid. The problems started when my four persons could not find their four persons so they couldn't get paid. Well we all know what happened to the Pyramid Scheme.

       Fast forward to the Jamomes Developers Limited Scheme. Like my fellow civil servants I attended the meetings where we were encouraged to invest our government bonds into this company. The proposed returns on our investment sounded good, but I was now older and wiser and had actually learned some things about investment risks so I was a bit hesitant in handing over my bonds to people I knew nothing about. There was no Google then and I did not have access to any Internet. Anyway, I weighed the option of collecting a dividend every six months over waiting on never ever before being able to collect anything. I was pressured by a few persons to change my mind but I was adamant, I would keep my bonds. I was called stupid because I was holding on to a piece of paper that the government would probably not honor.

       Fast forward again to Cash Plus. A couple of my friends invested in it. I know that there were more who invested and kept quiet about it because they didn't want anyone to know how they were getting their extra cash. One was getting her 10% interest every month but didn't pull it, allowing it to ‘roll-over’ because she wanted to buy a car that was a necessity to take her children to school and herself to work. Another borrowed $100,000.00 from the Credit Union to 'try her luck' because she was tired of living in a rented house and wanted a down payment for a home in a decent area. Another friend of mine, who is self-employed, invested his savings of over $5 million so that he would have a good pension in his old age and be able to educate his five children. I did not have the money to invest in Cash Plus; maybe if I had the money I would because I actually saw persons receiving their monthly returns and this I believe is why persons were attracted to Cash Plus.

       I personally do not believe or think that all those who invested were stupid or greedy. Some probably were, but certainly not all. A gamble is a gamble, you win or you lose after the dice have been cast or the races run. In the case of Cash Plus the race was scrapped while the horses were running and the end result was chaos and distrust. The sad thing is that persons who bought bets in this race did not demand a refund of their money. Maybe they didn’t want anyone to know that they gambled. Many of these ‘gamblers’ were churchgoers and would definitely not want their fellow congregants to know of their 'little' discretion.  Then there are those who are so ashamed because it was their pastors who encouraged them to invest in Cash Plus. Those who tried to get back their money were not given the opportunity to present their case as to why they should get a refund. The organizers of the race will always want to retain the purse and with the help of a legal system that is sadly skewed in their favor they will always win.

       Not all the investors were naïve; some knew exactly what they were getting into. The smarter ones with the business savvy knew when to jump ship. As soon as they made back their investment and a little profit they withdrew from Cash Plus. I recall travelling overseas and persons asking me if I knew of Cash Plus and told me how much money they had invested in it. They loved the fact that the US returns were great. My friend who lost his money lost it because he hesitated and took too long to join.  His friends had been telling him about it but he was too afraid to risk his money. The same week he joined was the same week the government clamped down on Cash Plus. In his case, he did not do due diligence on the principals of the company and his naivety cost him his life savings. He was not an intellect; he was just a mere common man with not much schooling. When I asked him what would he do if he did not get back the money his response was that it was just money. He was a Christian, a firm believer in God and believed that there was a lesson to be learned in all that happened. He did not owe anyone, he said, so he was not worried. Happy to say that since then, due to the type of business that he operates, he has probably made back three times the millions he lost.

       I have no doubt that the principals of Cash Plus will have their day of reckoning. There will be consequences and a judgement to every perceived wrongdoing. Will this judgement be swift or slow in happening? Only God knows.

No comments:

Post a Comment