Insurance and Ferrier Hodgson

Topics: Fraud, Accounting scandals, Insurance Pages: 3 (1137 words) Published: September 5, 2013
Performance Investment Product Corporation (PIPC)
In 2007 there was a scandal involving a foreign exchange firm Performance Investment Product Corporation wherein the owner of the company, Michael H.K. Liew a Singaporean National fled the country taking with him fund’s of the investors amounting to US$140 million to US$250 million. (James, PIPC investors lose money as Michael Liew disappears, 2007) The firm was established in the Philippine as an online Forex trading service in 1998. (James, Updates on PIPC, 2007)PIPC also part of the Performance Group of company which is a Singapore subsidiary, Performance Asset Management with branches in Japan, South Korea, China, and Switzerland. The firm is involved in the trading of advanced financial products such as futures and derivatives. (James, Performance Investment Product Corp. (SCAM), 2007)It is said that the minimum investment was US$40,000 and it promises an annual return of 12% per annum. (Enriquez, 2008) After Mr. Michael Liew disappearance the National Bureau of Investigation (NBI) and Security Exchange Commission (SEC) asked for investors to file a complaint against the company and people who are involved. (James, Updates on PIPC, 2007) Meanwhile the PIPC assigned Ferrier Hodgson as their provisional liquidators to investigate. Ferrier Hodgson is well known accounting investigator which is recognized for their expertise in tackling all matters relating to fraud. (James, Progress of Ferrier Hodgson's Investigation of PIPC, 2007) Ferrier Hudgson are as follows:

Ferrier Hodgson’s initial findings of PIPC
* Company generally lacks accounting books and records
* Very few people are in control
* Appears only Michael Liew had full picture of funds flow and bank accounts where investor funds were held Progress of investigation (Manila, Philippines)
* All available hard drives in Manila office compiled and copied * Currently securing ABN-Amro bank drafts
* Requested management to furnish...

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