Mr. Andrei Taopani, along with three good friends, started his own farm business operations in Manggarai, East Nusa Tenggara (NTT). The business began with 2 superior heifers and 20 male and female young cows. After the first year of the livestock business, the partners profit, and everything seems to be going well. Young cows are bred every year using extraordinary new techniques, and the cattle population grows to 100 in two years. Most heifers (superior) will produce twins, and 90 percent are bulls. This allows for the remaining 10 percent nurseries in the future. At present the operation requires new investments, so that new investor partners are limitedly invited to join the partnership with an initial investment of Rp 200,000,000 each. Partnership interests are advertised as "definitely profitable" and "very exclusive." In an interview with reporters, Mr. Andrei described the investment with the tagline "double your money, with a risk-free business". He persuaded investors that the best way to enter as a new investor was to act quickly within 10 days of the initial investment offer, because the offer was limited. The company's annual report shows remarkable growth, with pro-forma statements that predict phenomenal success. Because the price of beef is too high on the market, Andrey said he could request pre-orders that are premium and exclusive from the market for all beef sold. Based on the data and information above, do you think there are symptoms of fraud (red-flags) against potential investors, explain it comprehensively?
Mr. Andrei Taopani, along with three good friends, started his own farm business operations in Manggarai, East Nusa Tenggara (NTT). The business began with 2 superior heifers and 20 male and female young cows. After the first year of the livestock business, the partners profit, and everything seems to be going well. Young cows are bred every year using extraordinary new techniques, and the cattle population grows to 100 in two years. Most heifers (superior) will produce twins, and 90 percent are bulls. This allows for the remaining 10 percent nurseries in the future.
At present the operation requires new investments, so that new investor partners are limitedly invited to join the partnership with an initial investment of Rp 200,000,000 each. Partnership interests are advertised as "definitely profitable" and "very exclusive." In an interview with reporters, Mr. Andrei described the investment with the tagline "double your money, with a risk-free business". He persuaded investors that the best way to enter as a new investor was to act quickly within 10 days of the initial investment offer, because the offer was limited. The company's annual report shows remarkable growth, with pro-forma statements that predict phenomenal success. Because the price of beef is too high on the market, Andrey said he could request pre-orders that are premium and exclusive from the market for all beef sold.
Based on the data and information above, do you think there are symptoms of fraud (red-flags) against potential investors, explain it comprehensively?
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