Investors warned of bogus foreign gold investment firms

BANGKOK, June 20 (TNA) — Thailand’s Gold Traders’ Association has issued a warning to the public to be aware of shady companies persuading people to invest in buying gold on the spot or futures markets overseas.

Jitti Tangsitpakdi, president of the association, said many scam gold trading firms have been established and deceived people to invest in the gold spot market or in the futures market.

Many deceived investors have filed complaints with the association and the Securities and Exchange Commission (SEC) and the two agencies along with police economic investigators have apprehended a number of people working for such firms in the past, Mr Jitti said.

Such people periodically close their fraudulent businesses and then open new firms elsewhere to escape arrest, he said.

Staff at such firms persuade prospective customers to invest a minimum of US$10,000 and give them false advice on buying gold, Mr Jitti said. The companies are reluctant to disclose their addresses to customers.

Filing lawsuits against fake companies is difficult because such establishments are already illegal and customers are bound to lose a lot of money, MrJitti warned.

Would-be customers can check on the status of all companies as each firm must be legally registered at the Gold Traders’ Association a registered as either importer or exporter to enable them to be exempted from customs duty and revenue tax, he added. (TNA)