Banks freeze Speak Asia accounts, members now unpaid
News trickled in overnight that problem plagued MLM firm Speak Asia has had its bank accounts frozen in both Singapore and India.
In Singapore, the United Overseas Bank (UOB) froze and informed Speak Asia that they were ‘unable to continue maintaining the… accounts you have with us’.
Additionally it has been reported that bank accounts in India belonging to Speak Asia’s ‘Indian agents’ have also been frozen pending regulatory action.
The end result? Speak Asia are currently unable to process payments to their panelists.
As what appears to be the beginning of the end looms over Speak Asia, you’d think the company directors would see the writing on the wall and just cut their losses and run.
Rather, it seems Speak Asia and its directors are going to see this through to the bitter end, extracting every last dollar they can out of the gullible still signing up to the company.
Well, at least that’s the impression you’d get from Speak Asia’s public response to the account closures. Speak Asia flat out deny the accounts were ever frozen.
In a statement released to the public, Speak Asia allege that the bank account closures were merely the company shifting its assets.
Our bank account in Singapore has not been frozen… we are only moving our company account to another bank.
We are approaching and evaluating various other banks in Singapore from where we will soon be able to disburse the payments to all panelists.
Riiiight. Because having your bank inform you that you’re having your account closed with a 48 hour deadline is perfectly normal business practice.
Interestingly, the prepared public statement from Speak Asia directly contradicts the acknowledgement that their accounts were closed by Harendar Kaur, Speak Asia Chairperson.
In an open letter to Speak Asia supporters published on Speak Asia’s website, Kaur admits that
some banks have temporarily frozen accounts of our India based agents.
Due to the media noise, on (the) 25th of May UOB Bank in Singapore has also pressed us for closure of our 2 Bank accounts within 2 days.
As for a resolution, Kaur warns that it could be up to two months away;
Please note, in order to set up a seamless International Banking Gateway like the one at UOB Bank, takes at least 6 to 8 weeks.
Whilst there appears nothing that Speak Asia can do in regard to UOB closing Speak Asia’s Singapore based bank accounts, in response to their Indian bank account being closed Speak Asia are threatening to take the Indian government and banks responsible to the Supreme Court.
I’m sure taking the Indian government to court will work out wonders for them.
Interestingly in her open letter to supporters, Kaur credits herself as the CEO of Speak Asia, leaving me wondering who is really incharge. Manoj Kumar was appointed CEO of Speak Asia on May 15th, yet clearly Harendar Kaur sees herself as the CEO too.
No doubt this confusion is being deliberately planted by Speak Asia so as to create confusion over who to go after should things get worse.
Meanwhile the crux of Speak Asia’s argument appears to be that it’s the media attention that is the sole cause of all the attacks against them.
Kaur claims that
this has been a most disrupting experience for us ALL and we are MOST concerned about the disruption to your bank accounts and/or finances, that these actions prompted by the malicious media activity, thereby forcing the authorities have caused to us.
What she doesn’t seem to get (or does get but is desperately trying to detract attention from), is that the media attention first arose due to the business model of Speak Asia itself.
It’s a hard fact that by conducting surveys, Speak Asia panelists are only able to make $7-$20 a week. No more, no less.
The real money in Speak Asia is solely derived from the recruitment of others and whether they fill out surveys or not is irrelevant. So long as new members pay their joining fees and then go out and recruit other new members, everyone gets paid.
This, and this alone is the only reason Speak Asia are facing regulatory action from five Indian departments and have had their Singapore and Indian based bank accounts frozen.
Finally Kaur ends her open letter by calling for a media blackout by Speak Asia members and supports. Kaur urges
Please DO NOT pay attention to any other sources of Dis – information, which are designed to mislead and upset you and your families.
The entire company and its management is HERE TO STAY and are fighting, for our Panellists, Staff and Vendors and their families.
Clearly the intention here is to position Speak Asia and it’s members as collective victims. Whilst the company doesn’t have a leg to stand on in defending it’s pyramid scheme business model, things get a whole lot more complicated when you drag in millions of members life savings into the equation.
With millions of dollars on the line, the last thing you want are for your members to get out there and educate themselves on what is really going on and at stake here.
The hard lesson a lot of members of the Indian public are going to soon learn however is that no matter how much flowery and emotional language a company uses, a scam is still a scam. Even if Speak Asia somehow escape prosecution following all the investigations currently laid out against them, the fact remains that their recruitment driven business model is in no shape or form sustainable in the longterm.
A fact Speak Asia has conveniently refused to publicly address or even acknowledge.
Oh, but now SpeakAsia is mentioned in the SAME SENTENCE as TVI Express.
http://www.moneylife.in/article/tvi-express-yet-another-speak-asia/16795.html
Lol I like how TVI Express is mentioned in succession to Speak Asia as an afterthought.
What rock have these guys been hiding under?!
I do like this line from TVI Express in defending the company though;
Hilarious.
Kumar was identified as CEO SpeakAsia India in some TV reports (also at the press conference?), and Kaur identified herself as CEO of SpeakAsia. Is this yet another attempt to “divide responsibility by claiming there are multiple branches of SpeakAsia when there is no such thing?
Next think you know, SpeakAsia will probably claim they are incorporated in Antigua or Seychelles. 😀
The Daily Bhaskar is reporting that
Katoratalab is in east India and it’s interesting that they’re reporting all offices along with a main one have been closed. I thought Speak Asia didn’t have any offices in India.
Update June 8th, 2011 – The United Overseas Bank has released $11 million dollars to Speak Asia and the company are claiming that this will be ‘available for use and disbursal as soon as a new account is opened‘.
Currently without a business account, it’s unclear exactly how the funds were released to Speak Asia or in what capacity.
when speakasian penelists will get their money from their Indian bank accounts….
Currently Speak Asia’s money is sitting in limbo until they open up these new bank accounts.
When and if that happens, panelists will be paid. Till then enjoy your vouchers!
What’s interesting is money was released to the PARENT company, not SpeakAsia. Is this money laundering? Hmmm…
Apparently you *can* spend your SpeakAsia eWallet on some products… If that companion website is up, but you can’t cash it.
Can you say… bait-n-switch?
Harindar Kaur for all intents and purposes owns and runs both companies. By releasing the money to Harindar Ventures she’s just moving money around.
If it’s just a ploy to continue to extract money from India to the British Virgin Islands, then I guess you could call that money laundering on some scale.
please can you tell me when will speakasia pay survey money to me and how ? i sumbited my bank account info already . but i need money now i thought this business will help me in future , but now i need help but they are not able to send money.
What you need to do, sir, is complain to the police.
You have done your part, and SpeakAsia is not able to deliver.
By all reports, they have received their money back from frozen accounts over a week ago, but it was returned to a different corporation under same owner, not to SpeakAsia.
to pay 20 lakh members speakasia needs
20lakh X 55000 = RS 11000 Crores per year
Hope & pray this amount is spend by companies in a year for online survey
Indian authorities raided Speak Asia branches in India
http://ibnlive.in.com/news/houses-of-mlm-firm-franchisees-raided/163003-60-114.html
Two SpeakAsia agents arrested in India
http://www.moneylife.in/article/andhra-pradesh-police-arrests-two-agents-of-speak-asia/17645.html
Prime Minister’s Office and Reserve Bank of India are continuing investigations into Speak Asia
http://www.moneylife.in/article/pmo-asks-for-investigation-and-action-against-speak-asia/17721.html
More Indian officials call for new law to regulate “offshore” companies such as Speak Asia
http://www.hindustantimes.com/Moves-to-check-abuse-of-offshore-havens-soon/Article1-714448.aspx
1. Speak Asia is coming with 800 products.
2. Payment from 20th of this month.
3. New office is ready in Goregaon – Mumbai, 9000 Sq Ft, 2 Floors, 7 Star Office.
4. Speak Asia is coming with Money Back Option, No agency can raise question on Spk Asia now.
5. Website will come on 10th.
6. Tie up with Big Bazar, Spice Get in pipe line.
7. New Website cost Rs. 15 Crore, made by IBM.
8. India’s Largest Bank is with Spk Asia.
9. Top Legal Co. is working for Spk Asia.
10. Hoarding are being installed in all Major city in India (Mumbai is first to do so)
Note: we have crossed 21 Lac panal size.
21 lac size means total counting of 6000 & 11000 ID only, no sub panel / 1000 ID is included in it.
Now lets join hands work hard for yourself.
Proud to be a Speak Asian!
A Friend
1) Not offered by SpeakAsia itself, no doubt, but that “affiliate” of there. So the eWallet funds cannot be used until then, correct?
2) Paid into eWallet, or paid in real money?
3) So now they admit to being real Indian company, or not?
4) Until someone actually tries to exercise this “Money Back Option” and see how much trouble they run into, you have no proof this option actually exists or even if it works. They can announce all they want, but SpeakAsia have already lied many times. You ever read the story about the child who cried “Wolf” too many times?
5) You mean NEW website, yes?
6) So the 800 items are from Big Bazar or SpeakAsia? (see 1)
7) IBM don’t make websites. IBM don’t even make servers (sold off the Lenovo). Besides, this doesn’t prove that SpeakAsia is legit. It only proves that SpeakAsia spends money, EVEN IF your statement can be verified (which it cannot be).
8) And still no names, eh? I thought India’s largest bank is Reserve Bank of India, the one that tried to investigate SpeakAsia?
9) Again, no names, thus cannot be verified, corroborated in any way. Vague claim to legitimacy, when it’s anything but.
10) I think “hoarding” is what Indians call “advertisement billboards”. They need them because when the truth came out, a lot of them were vandalized and burned. Again, this doesn’t prove legitimacy, only proves SpeakAsia is willing to spend money to look good, even if it’s true (and there’s no way to verify this)
So, if you are Speak Asian, I wouldn’t celebrate just yet. All this proves is SpeakAsia rather pay for office, affiliation, website hosting, and billboards, instead of actually paying its “panelists”.
Dunno how the supposed relaunch went yesterday, but SpeakAsia have delayed their new website by 24 hours and are now claiming it will go live sometime today (the 10th).
Edit: Here’s a lifestream of the event (60-70% in Hindhi but enough in English for you to get the gist).
Video streaming by Ustream
Seems to be a big focus on getting big groups together to get discounts. Don’t know if this means Speak Asia are still going to be offering direct financial rewards for surveys or recruiting others.