The Money Lending Scams

 It took me quite some time to fully grasp the money lending scam that Rashpal and Ranjeet had unleased to the market. When I first invested in one of the Ranjeet’s scheme/scam (I dint know it then), Ranjeet promised payment of 2% per month. When I asked him how would he would make returns in excess of 24% p.a. to justify his business, he simply replied that money lending business do not charge anything less than 10% per month. Only very much later I discovered that licensed money lending companies are not allowed to charge borrowers anything more than 18% per annum. This led me to wonder how is Ranjeet and also Rashpal doing this so openly. Only after Satpal’s cousin met me did I understand how the scam and scheme work. 

Whenever Ranjeet raises funds through some purported scheme, which in essence are scams, the funds are spent in more or less the following manner. Rashpal does not at all get involved in fund raising exercise as he deems it embarrassing. Hence this task only handled by Ranjeet through a few fronting organisations such as Tricapital Ventures, Peninsular Asia Capital, Koperasi Usahawan Putrajaya Berhad, Asia Golf Network, Vasseti, Vascory and some other companies I cannot recall. Back to the modus operandi, about 10% of the funds raised are used as commission payment to investment agents or wealth advisers hired by Ranjeet. The remaining funds are split into 3 parts of equal 30% from total fund. 30% goes to money lending activities in Asoke, G&P companies and through some indirect channel to Knight Capital. All these are licensed money lending companies and people like Satpal, Hafiza, Ali and few others are tasked to search and bring in genuine borrowers of money. The last 2 portion of 30%each goes to Rashpal and Ranjeet, which Ranjeet arranges the money changes in his syndicate to launder to the Blind Offshore Trusts controlled by them. Clean upfront 60% of investor’s money (including my money) gets pocketed by these 2 bastards without any need to repay back. Then you would ask how investors are repaid monthly interest. Well that the scam that took me longest to understand and discover. 

As I mentioned earlier, 30% of the funds goes to actual money lending business. The interest charges are fixed at 10% per month. When a borrower comes to these licensed money lending companies owned by Ranjeet and Rashpal, they are made to sign some fictitious agreement, which will be used as genuine record for authorities to check. Assuming one person wants to borrow $120,000 for one year, then the interest element based on 10% interest per month will amount to 10% x 12 months x $120,000 capital totalling to $144,000. Include the original loan sum of $120k will total $264k to repay back to the licensed money lending companies within one year. The borrower need to pay monthly a sum of $264k ÷ 12 = $22,000 per month. 

So if the money lending agreement stated exactly as this, Ranjeet’s and Rashpal’s licensed money lending companies will end up in plenty of legal trouble with the government for charging exorbitant interest rates. So let me then explain properly as how Satpal’s cousin explained.  

We need to do a bit of reverse calculation to understand these bastard’s scams.  

 

Now assuming if one had gone to a genuine money lending company that charges maximum allowable interest of 1.5% per month or 18% per annum and that the borrower had agreed to repay $22,000 per month. How much borrowed sum would he have been able to take you may ask? The arithmetic will show that he would be able to borrow $224,000 with 18% interest per annum to justify his repayment of $22,000 per month. 

 

Now these bastards, despite lending only $100k to the borrower, will force the borrower sign a fictitious money lending agreement (purportedly saying 18% interest per month) for an enlarged amount of $224k and with repayment of $22,000 per month. This is the record kept in the books of all the licensed money lending companies they control such as Asoke, G&P Solutions, G&P Resources and also Knight Capital. 

 

Apparently Rashpal had devised this genius scheme whereby they are able to evade tax and avoid going against the law. Additionally, this will allow 60% of the total funds raised from investors using various investment schemes/scams by Ranjeet be siphoned on day one by Rashpal and Ranjeet! As an icing on the cake, these money lending entities will be able to show bloated capital usage to justify monies that had been siphoned out. Imagine their lending companies only lent $120,000 while the books will show they have lent $224k! Just like that $104k was seemingly created in the thin air. But that is not the case. Investors like me were duped to give money to Ranjeet which in turn was used to do illegal money lending business that oppressed another set of victims who had borrowed from them at exorbitant rates of 10% per month. 

 

Through this money lending scheme, both Ranjeet and Rashpal were able to cheat by evasion the government millions of ringgit in tax and investors millions of ringgit of investment funds without being detected. To make matters worse, after doing these crimes they were awarded honorary tiles of Dato Wira and Tan Sri ships and given high positions in coveted government agencies.