Friday, December 23, 2011

Is Avenue Hotel Property Scheme a SCAM ?

  1. After digging about Avenue Hotel Property Scheme, i thought it might be a good thing to share here.

    Info about Avenue Hotel Property Scheme (PDF).

    Company's website: Avenue Properties Bhd.

    My research:

    1) From the prospectus (, look at page 40. The company’s RM 5 Million paid up capital is NOT funded by cash, but by Director’s words that he owes the company RM 5 Million. Then, at page 40, it says that amount is unsecured, interest free and without fixed repayment terms. In other words, this is a RM 2 company in disguise. To stretch that matter further, i can even create a company which is owned by me and my wife, paid up capital of say…. RM 100 Billion, with the only asset of the company is that i owed the company RM 100 Billion.

    How much is a “Guarantee” worth if that person DON'T have any assets and NO income? Do you think the bank would lend such person Millions (or for that matter, even thousands) ? Why would we treat this company differently?

    2) The Trustee they use (My Premier Trustee) is not registered ( Why don’t they use registered trustee ? I asked the same question to a so called “Property investment company”, and that promoter's answer was, “Tell you what, you form one with the same terms using registered Trustee, and i’ll invest with you.”.

    Today, that company is no longer around (after separating quite a number of ignorant and possibly greedy people from their money). hhmm……

    3) Look at My Premier’s Trustee’s company profile ( . Then, take a look at the companies they worked with. Notice none are companies u heard of. Next, google those companies. And……

    3a) AZZ Marketing. Some headlines when u search in google (in 1st page) are,
    – “AZZ Marketing Tidak Bayar Hasil Pemilik”
    – “Azz Marketing menipu jutaan ringgit duit rakyat”
    – “AZZ Marketing Berhad Pelaburan Ikan Keli Penipu!”

    - Facebook Group – bongkar AZZ Marketing. (

    The funny thing is, My Premier Trustee on their website says that they’re not trustee for AZZ Marketing Enterprise, but only for AZZ Marketing Bhd. But when you go to main page of AZZ Marketing Bhd ( , and you clicked on the bottom link , that page wrote in their title , “KESATUAN PEMILIK PAKEJ AZZ MARKETING ENTERPRISE “. I might not be smart, but definitely i’m Not dumb to know that AZZ Marketing Bhd is related to AZZ Marketing Enterprise, and My Premier Trustee is related to both of these companies one way or another.

    3b) Arowana Ventures Sdn. Bhd. – Google it, and the scam has been a few years ago. I remembered surfing their website, and it’s closed. Now, it’s reopened again, promising a certain guaranteed return.
    – Read the lowyat’s forum ( I’m surprised they Recycle the same scam again.
    – Posted in June 2009 in ( Search for “Arowana”.

    Same guarantees with all companies in MPT’s portfolio, different product. I wonder does “Ikan Keli” is the malay word for Arowana Fish. If that is so, that scammer really good in Recycling.

    3c) Search ” Prestige Diary Farm Berhad” on google, and on the main page, you’ll get:
    - [SCAM] Prestige Dairy Farm (M) Sdn Bhd (832757-A) [Archive …” (
    - “Prestige Dairy Farm memang scam – Topix” (
    - “Scam or Not? Prestige Dairy Farm” (
    – “Skim cepat kaya versi baru : Labur dalam syarikat penternakan” (

    Also, forumers commented that the person behind “Prestige Diary Farm” and “Arowana Ventures” is the same person.

    3d) Look at ICT Venture – the structure looks about the same as all the rest too.

    Now, what does all these companies have in common:
    1) They give Guaranteed Return.
    2) The Return is way higher than FD (otherwise, how to lure the greedy + igporant people from “safe” bank?).
    3) THey give referral fee for promoting it, or it’s promoted by 3rd party marketeer.
    5) And lastly, … after a few years, the company is gone, like David Copperfied’s magic trick.

    Now, let’s assume we’re not sure “Avenue Hotel Property Scheme” is a scam or not. If that is so, then that means we’re not sure we might get back our Capital or not. Now, at 7% return, it’ll take 15 years for us to get back all our capital. Forget about Opportunity Cost lost during this 15 years. If that is not long, well, i don’t know what is.

    For the benefit of people who have already invested, i suggest you try to get back your refund. If can’t get back refund, then let’s pray that this is NOT a scam. After all, if it talks like one, acts like one, breath like one, smells like one, …… Maybe it might Not be one.

    Nevertheless, here’s more facts :
    First, let’s look at REIT’s Trustees. I’ve found there are 14 REITs in Malaysia, and below are the REITs and the Trustee they used. Note that AR stands for Annual Report. All AR can be obtained (and verified) from .

    1. AMANAH HARTA TANAH PNB – Amanah Raya Berhad (page 2 of 2010′s AR)
    2. AMANAHRAYA REAL ESTATE INVESTMENT TRUST – CIMB Trustee Berhad (page 4 of 2010′s AR)
    3. AMFIRST REAL ESTATE INVESTMENT TRUST – Mayban Trustees Berhad (page 5 of 2011′s AR)
    4. ATRIUM REAL ESTATE INVESTMENT TRUST – BHLB Trustee Berhad (page 15 of 2010′s AR)
    5. AXIS REAL ESTATE INVESTMENT TRUST – OSK Trustees Berhad ( page 3 of 2010′s AR)
    6. AL-HADHARAH BOUSTEAD REIT – CIMB Trustee Berhad (page 28 of 2010′s AR)
    7. CAPITAMALLS MALAYSIA TRUST – AmTrustee Berhad (page 20 of 2010′s AR)
    8. HEKTAR REAL ESTATE INVESTMENT TRUST – AmTrustee Berhad (page 32 of 2010′s AR)
    9. AL-’AQAR KPJ REIT – Amanah Raya Berhad ( page 5 of 2010′s AR)
    10. QUILL CAPITA TRUST – Mayban Trustees Berhad ( page 2 of 2010′s AR)
    11. STARHILL REAL ESTATE INVESTMENT TRUST – Mayban Trustees Berhad (page 14 of 2011′s AR)
    12. SUNWAY REAL ESTATE INVESTMENT TRUST – OSK Trustees Berhad (page 7 of 2011′s AR)
    13. TOWER REAL ESTATE INVESTMENT TRUST – Am Trustee Bhd (page 3 of 2010′s AR)
    14. UOA REAL ESTATE INVESTMENT TRUST – OSK Trustees Berhad ( page 5 of 2010′s AR)

    How many of the 14 REIT uses Trustee that is listed in SC’s website? ALL !!!Or, let me rephrase the question differently. How many of the 14 REIT uses non-registered Trustee ? NONE !.

    Just in case someone might say that this interest scheme by SSM is different from REIT or Unit Trust (since both REIT and Unit Trust uses registered Trustee which can be found in SC’s website), i’ve dug further to the SSM’s interest scheme companies.

    There are currently 3 types of interest scheme in SSM, Sharefarming Scheme , Equipment Sharing and this Property Scheme. For convinience, let me list all the companies below, and the trustee they used.
    - GOLDEN PALM GROWERS BERHAD – AmTrustee Berhad – ( )
    - SWIFTLET ECO PARK BERHAD – PB Trustee Berhad (
    - EAST WEST ONE CONSORTIUM BERHAD – Equity Trust (Malaysia) Bhd – ( page 10 of the company’s eprospectus here: )

    All companies uses Trustee that can be found in SC’s website (which are registered), except for 4 companies below:


    The 4 companies uses the SAME Trustee, which is My Premier Trustee, which is NOT a Registered trustee in SC’s website. Isn’t that alarming?

    Before looking for Guaranteed return, why not ask a more fundamental question? Where does the money comes from to pay the Guaranteed return since the business’s Revenue, Cost and thus Profit (be it Computer Rental or Arowana or Property) is NOT Guaranteed?

    As for CT Choo’s website, i googled further, and i found that this website of his ( ) states that they’re working closely with My Premier Trustee.

    And this website of My Premier Trustee ( ) have only 3 post, created only in August 2010, but have one post which is sourced from CT Choo.
    I’ll let you guys form your own conclusion.

    p/s: For the promoters of this scheme, please tell these companies to change trustee to registered trustee. Or, get My Premier Trustee registered with SC. However, if you still believe that it’s a good scheme, i suggest you to invite your wife, parents, relatives and all close friends to invest besides you investing at least 10% of your Net Worth there yourself.

    p/p/s: And if you own a house, you can actually get FREE money. How? Refinance your house to AIA or ING and get a fixed rate housing loan (say 30 years). Then take this lump sum and put (i avoid using the word “invest” since it doesn’t qualify as one as per Benjamin Graham’s definition) in this “Scheme”. Free money every year.

    HOWEVER, I STRONGLY ADVICE AGAINST THIS ! Being Greedy combine with Ignorant is bad enough. And if you add in Leverage to Greed and Ignorance , disaster awaits superbly soon!


Anonymous said...

Public Mutual is also a scam!
Take a look at your China Funds

Anonymous said...

Will you be able to testify in court to say that your findings are acurate?

Peter Lim said...

1. Why do you want to be anonymous?
2. Why should i testify?
3. What do i get?
4. Why don't anybody who is interested to invest check out themselves? I believe i've done enough research for them. Besides, i've also have those links.

5. I wonder whether you're related to them.

Anonymous said...

I was given a call by this company and told me about prospectus and such. When I asked for their company website, she reluctantly gave it to me. I googled around the company and found your blog.

Anonymous said...

My wish la i wanna be anonymous. I dare to say you have not done your research properly and your article is solely based on assumptions. You dont even know who issues a licence for a trust corporation to operate. Let me enlighten you, its ssm. Those registered with sc are those trustees who do pds, bonds and unit trust schemes. Their trustee does interest schemes. Need not register with sc. This again you would have known if you did your research properly...anyway gong xi fa cai

Anonymous said...

go read here ..first before making statements..

the thing is you are making statements which are incorrect.. are you saying SSM approved SCAM schemes?

i think you are not qualified to make this kind of you are not aware of the subject matter..the links tht you have given are taken from forums..which anyone can say anything..

Anonymous said...
This comment has been removed by a blog administrator.
Peter Lim said...

I didn't say SSM approve SCAM schemes. I'm saying if you're not doing due diligence on your money, and hope other people to do it for you (be it from Govt or from blogs), then i hope God Bless you very much. You're going to need it.

The link provided list all the schemes, but it doesn't tell who is the trustee. Maybe you can do the work and post it here. Much appreciated.

As for the "Public Mutual is a scam", let's agree that our definitions of "scams" are different. And if you think it's a scam, you should report it to SC. Not here.

Shihong said...


1. The trustee MUST be registered as a trust company under the Trust Companies Act 1949. The minimum paid-up capital is ONLY RM150,000. Not just register with SSM. SSM is not a regulator.

2. If you look at the prospectus (link:, on the cover page, it is written:

"A copy of this prospectus has been lodged with and registered by the Registrar of Companies, Malaysia, who TAKES NO RESPONSIBILITY for its contents."

This means, they don't even have to read it, much less regulate it.

3. The company that is registered as an interest scheme is Avenue Properties Bhd, NOT the Trustee. Any Tom, Dick or Harry can register a company with SSM. Just need processing fees and paid-up capital. Maybe not even RM100.


The Trust Company looks legal. But doesn't mean it is not sketchy. Just like many of the RM2 companies that you know. I think they may have found a loophole in Malaysia's regulatory system. This is not a unit trust or anything, so it does not have to be regulated by the SC. I think the definition of an "Investment" has to be broadened by the SC to cover all these kind of nonsense.

As of now, it is not technically under the jurisdiction of the SC. Nonetheless, cheating people's money is illegal. But until they are actually caught red-handed, it is hard to prove there is any wrongdoing.

Technically, the auditor can only report on the company, and do not have to report on the accounts held by the trustee. This makes things a lot more complicated.

But definitely, a company with RM5 mln only from the IOU of the director/owner makes no sense. Even if everything is "legal" I would definitely stay away from this kind of schemes.

1. I know Peter in a personal capacity.

2. I also carry a Capital Markets Services Representatives Licence for Investment Advice

Peter Lim said...

Well said. Thanks for your constructive feedback.

KL girl now in Ipoh said...

I too have my doubts about this Avenue Hotel Int Scheme. I received a call, out of the blue, from their rep. If you read the papers today, many Malaysians lost money in a land banking scam based in Canada.

Edgeworth is not the first such foreign land banking scam to come to our shores.

Perhaps now we have up and coming home grown ones. Look, this Avenue co has a paid up of RM5mil which Peter thru his research says is made up of Director IOUs. Now with this hotel (to be built), they intend to sell 70% of 10500 units at RM4800 per piece which works out to RM35,280,000! Not bad - RM5 million co raises funds of RM35 million from the public (unregulated) - hey, why bother go for listing? Much easier this way.

If the hotel doesn't get built, if it's run badly, how will it repay RM35 million? There's always the winding up procedures - now that comes under SSM, one might be comforted (not!)

Amadeus B.V 勇瑜 said...

Thanks Peter for this information. I was appraoched by their promoters too. Somehow I was not feeling comfortable about this scheme. Probably It takes too long time and I have never heard of Richard Wu(who is the boss). If you are asking me to invest in Hong Leong Assurance I will be more than willing to do. That's the difference btw famous and not famous.

Careema said...

7% ti risk your capital i rather invest in countries with higher fixed deposit lol in the ME

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