 By Dick Kauffman September 02, 2006
Marsden was one of nine ordered in August 2005 by the State of Alaska's Administrator of Securities Division to stop selling the PIPS investment in Alaska. Earlier in April 2005, Alaska Attorney General David Marquez issued a warning that PIPS is an illegal Ponzi scheme. A Ponzi scheme is an investment swindle in which high profits are promised from nonexistent sources and early investors are paid off with funds raised from subsequent investors. PIPS gained international attention and several state securities administrators issued orders against PIPS. According to the New Straits Times of Malaysia, angry words and tears flowed freely when in handcuffs Phan Sew Ken and her British husband were produced at the Sessions Courts in Seremban and Kuala Lumpur Thursday to answer charges of money laundering. The New Straits Times of Malaysia reported Marsden and his wife was charged with 41 counts of money laundering involving RM34.2 million at the Seremban Sessions Courts and charged with another 7 counts at the Kuala Lumpur Sessions Count. The offenses were allegedly committed between August 12, 2003 and Jan 4, 2005, according to the New Straits Times of Malaysia. The offense, under Section 4(1) of the Anti-Money Laundering Act 2001 is punishable with a fine up to RM5 million, or jail up to five years, or both. Marsden's wife was charged in her capacity as managing director of New Mark Business Centres Sdn Bhd. She was accused of receiving between US$39,253.48 (RM143,667.74) and US$499,963 in 41 transactions through the company's account at EON Bank's Nilai branch reported the New Straits Times of Malaysia. New Straits Times of Malaysia also reported that the couple's personal and company assets had been frozen by Bank Negara for almost 12 months pending investigations into the case. Both Marsden and his wife claimed trials to the charges of money laundering the New Straits Times of Malaysia reported. The couple could not raise bail and were returned to lockup. The relationship between these charges and the People In Profit System or "PIPS" is unclear. Regarding the People In Profit System or "PIPS", the State of Alaska's Administrator of Securities, Mark Davis, of the Division of Banking and Securities, issued a final order against "PIPS" (also commonly known as Private Investment Profit System) in August of 2005. That final order issued on August 5th by the Alaska Division of Banking and Securities imposed a $75,000 fine against each of the nine respondents names in the original order, which was issued in May. Respondents are Pureinvestor.com, Bryan Marsden, PIPS Inc., PIC Trust Limited, Westoby Works, Team JollyPIPSter,LLC, Gary R. Westoby, Deborah M. Westoby, and Torben Ole Jolnaes. The original Alaska Division of Banking and Securities Order determined that PIPS was an unregistered security, which was being offered for sale in Alaska in violation of the Alaska Securities Act. The Order also found that the PIPS "2% Plan," where investors are told they will get paid 2% per day on their investment, is a fraudulent investment which was being sold through misrepresentation. In August 2005, the Alaska Division of Banking and Securities Order required the principals of PIPS to stop selling this investment until it is registered as a security. Under the terms of the original Order, the respondents had 15 days to request a hearing. No respondent filed a request for hearing and none of the named respondents replied to the original Order.
Publish A Letter on SitNews Read Letters/Opinions
|
||
