For someone who constantly reprimands other people for not getting their facts right, you seem incapable of doing it yourself.

Here's a suggestion if you're willing to take it - Understand the difference between investing in a company's DEBT and company's EQUITY. When you understand the difference, come revisit these 2 posts which you posted. Otherwise, YOU stop making assumptions and spreading untruths.

Thank you.

You are absolutely right. For simpler calculation, let say the price of gold move sideways for 1 year and genneva is closed, who do you sell the gold bar to ? The buyer will take anywhere between 10-20% cut. That is another lost/risk. Even if it increase 20% in a year, you may gain nothing.
Another risk is what if the gold is not 100% genuine ? More risk/lost. Some took the gold for surface scratch test but this test cannot verify that the whole bar is genuine gold. To do a proper test, you need to cut the bar in two or drill it and genneva will not buy back the bar if it is scratched.
That is another risk isnt it ?

Just my two cents worth.

This post has been edited by terry8: Oct 6 2012, 11:28 AM

BNM legal teams must be prepared

Trading = sell products MUST profit
sell products NO profit = not trading (logic or not?)

Deposit taking = received cash/money
Received/taking GOLD = not deposit taking (under which act/section is illegal)

The moment BNM can prove that the Gold bars has more than 1 owner claims to same gold (recycling/sharing the same bars) genneva is gonecase

If he works for KPMG or McKenzie as part of the consultant team, he is not the one formulating the strategy. Rather he helps put together a strategy in powerpoint on behalf of the company.

I do not believe that a strategist and experience business consultant cannot see the glaring fault in the Genneva biz model. You only need Accounting 101.

I have worked for 2 MNCs (one in the top fortune top 50) and formulated strategies for them with actual P&L responsibility. Been in the business for 22 years. I do not dare to claim I know everything.

This kind of business model cannot go through phase 1 ie. feasibility study.

The "new age" generation these days seems to embark on the policy of "spend now pay later" and they think that this will also work in business.

It's sad because these CONsultants have caused many aunties and uncles to lose their life savings. These people who trusted these people who claim that they know everything. Its better they start thinking of how to help compensate these poor people rather than blaming Bank Negara instead of themselves.

It's sad .... that's all I can say.

It's a willing buyer willing seller

This CONsultants may have sweet talk the buyers but the buyers should have done their due diligence.
Nobody else to be blame except themselves

What bugs me is that the papers namely the Star and fellow crook NST keeps on highlighting the plight of Genneva's customers and trying to imply that all is well with Genneva..come on it's a Ponzi scheme for god's sake. I bet the editors and reporters also have put their hands on the Genneva dough and they are stuck now..it seems so obvious it is sickening. Instead they should stay impartial and do some coverage on the previous Genneva scam , ongoing court case and how to identify scammers ..etc..truthful and responsible articles....not bulshit like the customers was held ransom by BNM coz they bust genneva..Come on ..BNM did the right thing you uneducated sorry excuse for a reporter....this is GUTTER REPORTING AT BEST. Truly Malaysian media.

This post has been edited by drdoom: Oct 6 2012, 12:20 PM

If I am not mistaken, Genneva sponsored RM 100K for the Starwalk. I do not want to imply that they are manipulating their reporting but they should publish the professionally with experts explaining the flaws in the biz model of this company. Instead they are trying to please the investors and giving them false hope in many ways.

Even if BNM did not raid them, this whole thing will collapse one day. Problem is that instead of having 60K victims they might have 120 K or even 240 K victims.

Maybe the MCA taikor is an interested party on this Genneva fiasco. The sponsorship of starwalk could be the vital link.

I cannot fathom how some professionals fell for it too. Didn't they do the maths and activate some brain cells?

How is it going to end? How many people are going to end up with half of their investments?

Yup..the painting of false hope on their articles is repulsive and annoying at best..it's like some 'sapu' and 'gosok' going on.

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Added on October 6, 2012, 2:21 pm +1

This post has been edited by drdoom: Oct 6 2012, 02:21 PM

There are professionals in their respective field being duped by Nigerian / MLM/scratch and win scam. Sometimes when greed takes over...activated brain cells will deterioates in matters of milliseconds.

Bet you some professionals were on the hunt for this sort of schemes, to be among the first batch of customers who got in and got out with profits; and giving false perceptions to the later batches of naive consultants and customers to jump onto the bandwagon.

Maybe the authorities will be following up on these past customers when the dust has settled down.

I know a few lawyers and specialists who still have hundreds of thousands with Gennneva and as they are holding on to the gold bars, they think everything is still rosy and it will all resume to normal in 2 week's time. They are being given assurances by the consultants whom they dealt with and not worrying about a thing....Oh Well, maybe it's just a small amount of their fortune and the pain is nothing more than a mosquito bite if it all goes to hell..

easy come, easy go... maybe they took the risk with full knowledge that the music will eventually stop but were caught without chairs when the music did stopped.

People should awaken after this incident, especially those victims( AKA investors).

That's why don't like the star,mca and nst.

In the US, the authorities have the right to take back all profits taken by the investors in the last 4 years and then they pool these money together with all the frozen assets and redistribute fairly to all investors. They did this with the Madoff scam and recovered quite a lot of money. Of course, in the end each investor got back only a potion of what they invested but it was better than nothing. Madoff has such a long prison sentence that it is equivalent to life imprisonment.

I hope that the authorities here can do the same and recover the earlier gains for the benefit of all the victims.

Also, those CONsultants should not be shouting too loud because they also can be charged. I wondered how many of them fully declared their "Hibah" in their personal income tax. In order for them to claim back what they have invested, they need to show the records (which are in the confiscated servers) and they still have to pay tax on these income even if it is an illegal operation - this is the Tax Evasion part.

I really feel very sad for the old folks who lost so much and will find it difficult to recover from this. On the other hand, I am irate with the CONsultants who want this to go because they want an easy life with little work.

I do not want to antagonise anybody but in order for them to recover they need to take a new turn. In order to take a new turn, they need to know the path they are going down is leading to the wrong direction.

It's really sad because I read many depended on this for their very meal on the table, for treatment etc. Letting this scheme continue is NOT the answer as it will only collapse with a BIGGER hole and many more victims.

They should shut this down earlier.

This post has been edited by terry8: Oct 6 2012, 02:49 PM

i read most of the comments at Genneva FB......really pity them. denial? fear? delusional?

they claim it's just a trading company, but they also claim themselves as an investor. They don't even know what are they, either just a buyer or investor.....

They claim BNM should release all the gold and the money to the 'investors'. Well, are the gold there in the first place? Is it enough for everyone who paid for it but have not received theirs?

most of them blame BNM, and blame BN and want to kick them out. oh well, good for PR.......

This post has been edited by ciahcra: Oct 6 2012, 02:57 PM

Yes the earlier batches had already cashed out; or some had already recovered their principal with those hefty interests. Its the older folks in the later batches that are getting burnt, poor poor thing.

The one that are gonna lose everything is the one that borrow money from the bank to invest in scam.
You can read the article in the link below. Pretty scary......


http://theangryinvestor.blogspot.com/2012/...mention-on.html