Defencex - Scam/Scammer/Scammee?
by, 06-Mar-13 at 06:59 PM (59535 Views)
The thread about Net Income Solutions (Defencex) was started a couple of weeks ago on TheForumSA.co.za by a member who wanted to know if it's a scam or not. Lots of comments were bandied about, also by myself.
It was an interesting 'coincidence' when we picked up that the bank accounts had been frozen in February.
But I was not prepared for the sheer volume of people invested in this scheme!
I follow the news on this with a fair amount of interest, and I must say my heart breaks every time I read the comments on the news articles / facebook pages.
It's fine to point out to the pitfalls of a scheme like this to people who earn 'comfortably', and even maybe judge them a little for joining; but the problem arises when there is no food on your table, and no money to pay your child's school fees. Common sense flies out of the window, and survival becomes the only issue. Once that has been mastered (after a few weeks on the scheme) the next phase would be getting used to the regular cash, and then wanting more money, taking bigger risks.
It is quite obvious from the comments on the articles that people are highly emotional about this issue. The reason is in most cases, that without this income stream, they are desperately poor.
Yet somehow, Chris Walker has managed to become a saint and savior in these people's eyes. I feel sick to my stomach if I think of the (quite likely) possibility that he orchestrated everything (even the freezing of the account). I will have to wait and see, but if this is true (and some are saying over R200 million is missing from the account), then Mr. Walker has pulled one of the most ingenious stunts ever.
1. He 'sold' a 'product' that is not quantifiable, not provable in a clinical sense. (EFT/Tapping)
2. If the 'product' failed, then no-one had any recourse because how could you prove it did/did not work?
3. Because he needed a 'product' in order for this scheme to not be classified as a pyramid scheme, he searched far and wide for the 'perfect fit'. (Google the EFT Foundation article - this is where it began, and he admits having looked everywhere for the right product)
4. He made joining the scheme irresistable at the ROI of 2% per day;
5. He made it accessible to everyone at R 100 per point;
6. He covered his tracks by stating that members may not promote this as an 'investment scheme' unless they want to forfeit all their benefits, which means that even if he wins this case, he has the full right not to pay out any dividends. (Especially to those 99% of members so very vocal about this 'investment' in the press.
7. He has made the very clever move of apparently donating to a Soweto-based charity;
8. He has appealed to and touched people's emotions, and that is why they will march, slander and toyi-toyi for him;
9. He made a short appearance at the WITS function, without taking or answering any questions. This did little to calm the nerves of those with money invested; but in some alchemical way, Defencex members saw the mere fact that he did attend, as proof that he has not abandoned them - and that all will be well.
What the members fail to understand, is that there is currently (as far as I know), nothing (no legal process) that prevents Mr. Walker from leaving the country (or from clarifying things to the members for that matter).
Some Defencex members say there are 178 000 investors, but according to the investigative journalists who virtually got stoned for publishing the report on the freezing, the numbers are closer to 600 000 people. Let's go for the conservative estimate here - let's work with 250 000 people. Given that you can only withdraw when your returns are above R200, I am willing to work on the premise that each of these investors would have invested a minimum of R500, which would 'yield' returns of R10 per day, after +- day 25 (With the R200 minumum balance, and holidays, weekends etc. not really factored in). Assuming that these were true figures, do you realize that the total deposited would be R125 Million? Even if it were R100 each, the total would still be R25 million!
But let us be fair: When the account was frozen, it had a R320 million balance. Since the scheme was roughly in the second to third full cycle of 75 days, and no members complained of not getting paid, it must mean that approximately the same amount had been paid out, let's say at least another R320 million. Total then would be R640 million (assumed). And is there anybody here that thinks that Chris would not take 2% for himself, at the very least? Then it is R640 million x 2% = R 12.8 million PER DAY!
Let's leave that be - conservative estimates are saying approximately R200 million is 'missing' from the account. What are the chances that he's stashed that 'missing' R200 mill somewhere? Obviously he was well aware that the scheme had a limited lifespan. (I would've been in Cuba if I was him).
Please Note: Commenting on the Defencex scheme does NOT mean that I support Government Corruption, Tender Fraud, or Bank Greed. It also, most definitely, does not mean that I am rich.
Just a quick question:
Why has Chris Walker not contacted the Defencex Members with a non-committal, but reassuring statement such as:
'Dear Members, you are no doubt aware of the legal actions commencing at this time - Please be assured that my thoughts are with you. As per the legal advice from my attorneys, I am advised not to make any further statements.'
(And he might have added something like 'Happy Tapping' or 'I do NOT, actually, walk on water yet.', or 'Bon Voyage')
Since members registered using their cellphone numbers, how difficult would it be for a scheme of this magnitude to update their loyal followers via bulk sms's?
1. Dear Defencex member, we are experiencing technical problems with our bank accounts. Please be patient! (28/2)
2. Dear Defencex member, due to a SARB investigation, our bank accounts will not be able to handle deposits or withdrawals for now. We will keep you informed (1/3)
3. Dear Defencex member, we are seeking legal advice with regards to the High Court Interim Order. (3/3)
4. Dear Defencex member, we apologize for the unforseen interuptions in service - we will be back online ASAP (5/3)
5. Dear Defencex member, we will miss your deposits (7/3)
There are all kinds of serious allegations flying around (on facebook of course - where everything is true!) at the moment, such as that the stepping down of a certain CEO is mentioned as being a result of this specific account; that there is an alternative scheme already in place to fill this gap; that the owners of the new scheme orchestrated this downfall...
I will not be surprised if there is a mass action as a result of this mess.
Interesting, heartbreaking times.
On a personal note:
Chris Walker has done irreparable harm to an alternative healing modality (EFT) that has proved to be of immense value in my life, and in the lives of a lot of my nutty, alternative, hippie friends.
In my world, people who harm the innocents for their own gain, be it animals, plants, or people, have no excuse.
I hope that I am proven wrong in this instance - so many people are suicidal about this.
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