Some Advice Needed

Hello
I am hoping that some of you can throw some light on this for me please. I have no head for business but I fear the worst in this situation. I had a look at the company concerned website but can understand what they are about.

Here is what I need help with.

This morning an elderly neighbour was over for tea and a chat. During the course of the conversation he mentioned that he and his son had been to a conference in the midlands with a company named Moralltach.

I am aware that my neighbour and his son are currently experiencing difficult times financially and I fear that what they picked up at this conference can not be good for them.

Here is what he told me:

If he invests €1000 with this company he will be returned €4000 after a period of 6 weeks. I find this part very difficult to believe.

But this part is more worrying.
By making the investment the door is then opened for a loan of €100,000. This loan will be charged at 5%pa and the FULL amount must be returned after 5 years.

He and his son plan on borrowing to purchase young horses (this is their line of work) and to resell at the sales hopefully at profit.

He assures me that no collateral is needed. Again I find this difficult to believe.


Can anyone throw some light on this company and also on the likelihood of this investment and outcomes?

I am genuinely concerned that they are about to be taken advantage of and could lose the little that they have.

Thanks folks.

jimmii

Certainly does sound a bit strange! There is surely more to it than just that perhaps they don't know or don't understand but I imagine they have left parts out. There are a number of things they could do within this but when a company offers an "investment" where your 1k becomes 4k in 6 weeks you can be sure they aren't just giving away money for the craic. I hope they are even a little bit sceptical and don't just jump straight into it.

lucky john

There is NO (legal anyway) investment that gives a return like that. There is also NO (again, legal) company that just offers a 5% rate for a 5 year loan without serious collateral. Plain and simple ..if it looks to good to be true then it is to good to be true. The best advice you can give your neighbour is to walk away.

Ask him this. If the company can turn €1000 into 4000 in 6 weeks why would the lend him €100,000 at 5% when they could turn it into €400,000 after 6 weeks themselves.

KidMeNotA1

He needs to run a mile from this. See the newspapers over the w/e. This is a total scam. The old saying; if it seems to be too good to be true, it usually is. Tell them to stop dreaming.

KidMeNotA1

KidMeNotA1 wrote: »

He needs to run a mile from this. See the newspapers over the w/e. This is a total scam. The old saying; if it seems to be too good to be true, it usually is. Tell them to stop dreaming.

I didn't see any of the newspapers. Any chance of a link or a brief account of what was in them please?

ironclaw

I'm guessing its a pyramid scheme, you invest €1000 and 6 weeks later you get a pay out for €4000. Given the demographic its targeting, you'll get a 'wow' effect, leading to increased investment or agreeing to favorable terms on large loans, which you either won't be able to repay (As you are probably on the borderline anyway) or have hidden, heavy penalties.

Turning €1000 into €4000 in 6 weeks is loan shark or heavily leveraged trading territory. Massive risk either way.

Have to say, they don't exactly strike me as all together successful on horses if they require a loan to buy more stock.

dbran

Cheap and nasty website, impressive blurb and techno babble, but the whole thing stinks to high heaven.

The fact that the contact email address is just a gmail address says it all really.

Dbran