How to spot Illegal Deposit taking by companies?

Last week, Central Bank of Malaysia has raided 4 companies which been accused of taking deposit illegally. One of the companies, Buluhmas Enterprise http://www.buluhmas.com was promoted by my old friend, asking me to join. I was quite reluctant to join. then, news breakout; buluhmas together with other 3 companies which has same mode of operations, suspected to have taking illegal deposit (some people would classify under quick rich scheme).

Related News:
http://www.bernama.com.my/bernama/v3/news_lite.php?id=364618
http://www.utusan.com.my/utusan/info.asp?y=2008&dt=1014&pub=Utusan_Malaysia&sec=Muka_Hadapan&pg=mh_01.htm

Though in the past, so many companies have been raided by Central Bank Of Malaysia, not many people really learn their lesson. For your information, once a company has been accused to operate illegally against BAFIA Act or AMLA act, the account will be frozen. If found guilty, the money will not and will not be refunded to so-called "investor".

To prevent this to happen again in the future, here are some guidelines for you guys on how to spot "Illegal Deposit Taking":

1. This company is legally registerred with ROC (registrar of companies or known as SSM) under SDN BHD.
2. They have legal binding agreement, endorsed by lawyer, legal stamp duty as if to show they were very transparent, if anything happened; you can sue them and get your money back. Don't be fooled.
3. They run a legal business like farming, retailing, franchising, trading, services etc. They look real to you.
4. They have the so-called investment package, i.e: if you invested RM1,000.00; you'll get certain or reasonable amount of return. They will claim the money will be used as business capital to run the business. Once get profit, it will be distributed in accordance to package.
   

The fact is:

1. Under SDN BHD, if something bad happened like bankrupt, fraud; company is dissolved and you can't do nothing about it to its board of directors though you have "legal agreement". This is the loop hole of this "law". Those manipulative lawyers paid by these companies fail to understand laws.
   
2. If a company suspended by Central Bank of Malaysia; no lawyers in Malaysia can save that companies though you have the best legal agreement in town and best lawyer in the country.
   
3. Companies that are allowed and given permission to collect deposit:

• Limited Companies (Syarikat Berhad) via Security Commission through share
• Koperasi which is supervised closely by SKM (Suruhanjaya Koperasi malaysia) through its share.
  
• Financial institution like Tabung Haji, PNB (ASB/ASN/Etc) or Bank institution or its subsidiaries (i.e: Bank Islam and its subsidiary Takaful Malaysia, Maybank and its subs like etiqa, public bank and its subs like Public mutual etc). This is inclusive of the collection for saving, investment, fixed deposit and insurance.

Anything that not belong to these 3 categories, if your friends or relatives promote to you no matter what, even in the name of your race, your religion etc; Don't ever give your money.

Read again and again. I have learnt my lesson. When will you??