A stunning reminder for investors: trust no one  

Unbelievably, Assoc Prof Sawat Saengbangpla, former chairman of Chulalongkorn University Savings Cooperative Ltd and renowned as the country’s savings cooperative guru, has allegedly deceived more than 160 victims – mostly current or retired university lecturers – who invested in his lottery cooperative for a promised annual return of 12 per cent. In total they lost more than Bt1.4 billion. 
Sawat reportedly used his expertise to lure victims into a fraudulent investment scheme that swallowed their life savings and left them ruined.
Significantly, he used his academic credentials as the CU savings cooperative chairman to seek potential members, who trusted him so much that they neglected to consider the risks of investing.
The case raises important questions. Did Sawat get a special lottery quota from the Government Lottery Office to offer as a product for investment? Did his lottery cooperative really exist? Can investing in the lottery really yield 12 per cent per annum – 10 per cent more than a bank savings account?
Most importantly, though, it underlines that all investing is implicitly risky. “Higher return equals higher risk” is a vital principle that everyone must recognise before making investment decisions. And personal trust in your financial guru can be misplaced, so is not a guarantee that members will receive the high returns promised.
Sutipunt Bongsununt