Thread: Global Pension Plan

The article wasn't that expansive really. If I've still got the paper I'll try and scan it tonight or something.

EASY MONEY: Get rich quick schemes are nearly always frauds

AN INVESTMENT scheme that promises to turn €30 (£22) into €55,000 bears a striking resemblance to a scam, according to experts.

The Global Pension Plan scheme which claims in its marketing literature is a "brilliant" project could rip off 100,000 unsuspecting victims, making millions in profits for the organisers if it proves to be a con. It appears to work like a pyramid scheme, where each new member is encouraged to sign up more joiners. To help attract recruits, the scheme provides a glossy brochure which explains how they plan to turn €30 into €55,000, using members' names to buy and then sell insurance policies. It is not registered with chief City watch¬dog the Financial Services Authority and the main organisers are not contactable; each member's only point of contact is the person who recruited them.

Des Fitzpatrick at the Office of Fair Trading Scambusters team says:

"The emphasis is on the small amount of cash needed from each investor, which is often the case with scams."

"The scheme is unregulated, so it offers little protection against losing your money. The people behind the scheme are anonymous, which gives no way of assessing who is in charge. They have put forward what appears to be a simple version of a complex issue, based on a number of assumptions. One potential problem is that investors may not qualify for the 'endowment' needed to make the cash return that is promised."

"We advise consumers to be cautious before entering schemes like this."

The scheme requires members to provide identification such as their birth certificate or driving licence, which opens up opportunities for identity theft should the scheme turn out to be fraudulent.

Tom McPhail, the head of pension research at Hargreave; Lansdown, says:

"If anyone is tempted to invest in this, they shouldn't. I looks like a scam."

"It has all the hallmarks of a scheme designed to relieve the unwary of their hard-earned cash: for example, the outrageous rate of return required -183,233 per cent over six months - as well as the fact that the scheme refers to a respectable investment: endowments."

"But what these people say they are selling is not an endowment."

"The e-mail address at the end, Hotmail account, is not exactly credible either."

The Global Pension Plan website now says registration will close at the end of the month.

Cheers Dreamer, saves me the effort!

but, the thing is... that they only say it LOOKS like a scam. Why don't they say it is DEFINATELY a scam? Know what I mean? Anyhow, logically speaking I do agree with the idea that much of a profit doesn't compute.

Well, "If it walks like a duck and it quacks like a duck, then most likely....."

Originally Posted by whadyano

Well, "If it walks like a duck and it quacks like a duck, then most likely....."

quack,quack.....

Originally Posted by moncheri

but, the thing is... that they only say it LOOKS like a scam. Why don't they say it is DEFINATELY a scam? Know what I mean? Anyhow, logically speaking I do agree with the idea that much of a profit doesn't compute.

As an official body they would be constrained from saying it was a scam until they have identified quite positively all the facts. But it's really like circumstantial evidence which is certainly enough to convict in this case.

Originally Posted by moncheri

but, the thing is... that they only say it LOOKS like a scam. Why don't they say it is DEFINATELY a scam? Know what I mean? Anyhow, logically speaking I do agree with the idea that much of a profit doesn't compute.

Maybe this will help. A plane crashes into a field. The event is reported on the news saying a plane crashed in a field. The NTSB comes in to do an investigation. A year later the NTSB announces the "cause" of the crash of the plane in the field. Now we all know the plane crashed in the field, and it didn't take the NTSB announcing the cause of the crash for us to know the plane crashed. For people to say that because the authorities have not said this is a scam, doesn't change the facts it is a scam. All the authorities will do is confirm what everyone knew all along.

While most of us have been focusing on the $55,000 payout, we have overlooked that for certain ages the payout will be $110,000. Only problem is you cannot insure a minor for a penion plan; yet GPP is issuing (supposedly) policies on minors. To obtain a pension plan in the amount of $200,000, you have to qualify (meaning your income must be at a level that would sustain premium payments as well as income verification) to receive a pension in that amount. Now do you really believe that 100,000 people all will qualify for a $200,000 policy? What you also have to believe is that they will qualify for more than one policy since they have allowed the members to purchase additional policies. Now let's assume that someone has purchased just 10 policies total. That means they have 'qualified' for $2,000,000.00 in pension funds, yet this person is only making $40,000 a year. Now do you really believe a person making that amount of money would qualify? In essence they would receive more than 13 times their annual income from a mere $350 investment. Still believe this is real and not a scam?

Originally Posted by LynnRE

Maybe this will help. A plane crashes into a field. The event is reported on the news saying a plane crashed in a field. The NTSB comes in to do an investigation. A year later the NTSB announces the "cause" of the crash of the plane in the field. Now we all know the plane crashed in the field, and it didn't take the NTSB announcing the cause of the crash for us to know the plane crashed. For people to say that because the authorities have not said this is a scam, doesn't change the facts it is a scam. All the authorities will do is confirm what everyone knew all along.

While most of us have been focusing on the $55,000 payout, we have overlooked that for certain ages the payout will be $110,000. Only problem is you cannot insure a minor for a penion plan; yet GPP is issuing (supposedly) policies on minors. To obtain a pension plan in the amount of $200,000, you have to qualify (meaning your income must be at a level that would sustain premium payments as well as income verification) to receive a pension in that amount. Now do you really believe that 100,000 people all will qualify for a $200,000 policy? What you also have to believe is that they will qualify for more than one policy since they have allowed the members to purchase additional policies. Now let's assume that someone has purchased just 10 policies total. That means they have 'qualified' for $2,000,000.00 in pension funds, yet this person is only making $40,000 a year. Now do you really believe a person making that amount of money would qualify? In essence they would receive more than 13 times their annual income from a mere $350 investment. Still believe this is real and not a scam?

I don't know if gpp will payout, but my understanding is that the Trust Partner pays the premium on the member's and minor's policies. The member (and minor) then signs away their future rights to these insurance policies in lieu of the pension payout($55,000/$110,000). The Trust Partner then owns these policies to do whatever he wishes. And , the member and minor walks away with an early pension. Unless, I missed something...

Originally Posted by hyipking

I don't know if gpp will payout, but my understanding is that the Trust Partner pays the premium on the member's and minor's policies. The member (and minor) then signs away their future rights to these insurance policies in lieu of the pension payout($55,000/$110,000). The Trust Partner then owns these policies to do whatever he wishes. And , the member and minor walks away with an early pension. Unless, I missed something...

No you did not miss anything as that is what GPP has stated about the program. Only one problem, what they stated and what is real are two different things. You CANNOT issue a PENSION plan on a minor period. There is not a legal insurance company in the world who would even try something like this. They would lose their license immediately if they did. As I stated above, if this was a straight life insurance policy, a different story. Don't take my word for it, but ask any insurance agent if this can be done; or call an insurance company and ask them. They will gladly answer your question. While you are at it, ask them if you can have more than 1 policy on yourself for the exact same amount based on your annual income. Just be sitting down when you ask them, because the answer you get will not be what you want to hear. In addition, ask them what information they would require from you for them to issue you a pension plan. The reason? Well, if GPP doesn't ask you to provide the same information, they are not real. You will not believe all the information they will request from you to write a pension plan on your life. Hint, it is more than your banking information, and copies of your ID's. So if they don't ask for this, you might want to ask how the Trust is going to "fill in" the information for you. If they do it, then it is "fraud." Guess what, you can also be charged with fraud for allowing them to do it for you since you are receiving payment from a pension plan you did not apply for. Still think it is only going to cost you a mere $35?