Gold mining investors in S'pore desperate to recoup money

Singapore

FOUR years ago, Aloysius, a 28-year old croupier at a casino in Singapore, coughed up S$7,000 to invest via online in Virgin Gold Mining Corp (VGMC), a Panama-headquartered mining investment vehicle that promised hefty returns and a stock offering down the road (it didn't happen).

Security officer Vignesh (not his real name) and his ailing mother were more daring and ploughed S$30,000 into the same scheme where investors were guaranteed regular dividend for investing in VGMC's newly-issued convertible preferred stocks (CPS) with the ultimate incentive of converting them to common stock when an initial public offering happens down the road.

They were among the tens of thousands of investors tha…