Guaranteed - 45% Gross Over 3 Years-Muldowney Group

kgbm said:

And i agree that the deed of assignment does not state that the original investment is gauranteed just the 15%

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Saying the return is guaranteed but the capital isn't is pretty meaningless. I can guarantee you a 100% "return" on your money if I don't have to guarantee to give you your capital back.

Sounds suspiciously like the "guaranteed rentals" offered with many overseas investment properties.

kgbm said:

all getting very interesting. just to repeat to clubman they stop the tax at 23% (similar to DIRT tax). And i agree that the deed of assignment does not state that the original investment is gauranteed just the 15%

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I was told that they stop 20% which sounds like a standard rate income tax dividend witholding tax. If so then investors who normally pay 41% on any of their income are still liable for the additional 21% and in some cases may also be liable for PRSI. I doubt that the tax witheld is DIRT tax or that it is necessarily the full extent of high rate taxpayers' liabilities.

KalEl said:

less CGT or DIRT but not income tax?

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I still wonder if it's DWT with a futher 21% liability on high rate taxpayers.

ClubMan said:

I still wonder if it's DWT with a futher 21% liability on high rate taxpayers.

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It's hard to see how it can be just CGT or DIRT...the salient point is that the return is guaranteed but the capital is not. I would suggest a return is only a return when your capital is reasonably safe.

Surely if the Capital cannot be guaranteed , then any return guarantee is pointless. If your capital is zero, so will your return be

samfarrell said:

Surely if the Capital cannot be guaranteed , then any return guarantee is pointless. If your capital is zero, so will your return be

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Well, technically, if you invest €100k with me, I can guarantee you a 45% (€45k) return (on your investment). I give you back your €45k and keep the €55k for myself. I don't even need to invest it anywhere to guarantee you that return (on investment) if I don't guarantee original capital guarantee.

I think anyone reading this thread will understand the pitfalls of the product.

The mods have had to delete too many posts, so I am closing the thread.

Brendan

It turned out to be too good to be true...

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Sunday, May 16, 2010 - By Ian Kehoe

More than 50 Irish investors are facing significant losses after the collapse of MPS Global, a Clare-based investment and development company.

MPS Global , which is headed by businessman Jal Kalsi, invested millions of euro on behalf of Irish clients in overseas property deals, including condominium developments in New York and Chicago.

The company last week went into liquidation, following a High Court petition by one investor.

About 50 people invested through the company, and most will now lose their investments, which ranged between €25,000 and €250,000.

The liquidator, Myles Kirby, a partner in accountancy firm Ferris & Associates, confirmed that he was investigating the circumstances surrounding the company’s collapse and its dealings with investors.

It remains unclear if the company has security over any of its overseas investments. Kalsi, a former president of Ennis Chamber of Commerce, was out of the country last week and could not be contacted. He is expected to return to Ireland in the coming days.
http://adserver.adtech.de/adlink|3....H;loc=300;key=key1+key2+key3+key4;grp=[group]

Originally called Muldowney Property Services, the company changed its name in December 2007 to MPS Global.

According to the company’s literature, it claimed to offer a guaranteed 15 per cent annual return on a minimum investment of €25,000 over three years.

In 2007, the company said it had signed an exclusive property investment with Dubai company Avanti Holding for $14.7 million-worth of planned acquisitions.

The company also offered investors the chance to back a proposed 42-storey condominium development in New York at 75 Wall Street and another development in Chicago.

The company also claimed to have joint ventures with partners in the United Arab Emirates, Bulgaria and the US. According to its most recent accounts, MPS Global said it had property investments valued at €4.3 million. Kalsi held 20 per cent of the company’s shares, while the rest of the shares are owned by Suejeet Kalsi.


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Well, Blow me down !!!! Just read right though this thread and yesterdays post from Brendan has confirmed everyones suspicions. As always, Caveat Emptor.