Genneva Gold Offices Raided by Bank Negara Malaysia
Genneva Malaysia Sdn Bhd was a very hot topic today.
This gold trading firm was raided by the Bank Negara Malaysia, police, Ministry of Domestic Trade, Cooperatives and Consumerism and the Companies Commission of Malaysia on 01 October 2012.
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This was the Official Press Release by Bank Negara Malaysia:
Ref No : 10/12/01
Embargo : For immediate release
Joint Raiding Operation on Genneva Malaysia Sdn Bhd
A joint raiding operation was conducted today on Genneva Malaysia Sdn Bhd and its affiliates by the Royal Malaysian Police, Ministry of Domestic Trade, Cooperatives and Consumerism, Companies Commission of Malaysia and Bank Negara Malaysia for suspected offences under the laws administered by the respective enforcement agencies.
Singapore’s Commercial Affairs Department has also conducted a similar operation against Genneva Pte. Ltd. in Singapore.
The public is advised to be cautious in investing their money to avoid becoming victims of activities that are illegal and in breach of the law.
The Royal Malaysian Police
Ministry of Domestic Trade, Cooperative and Consumerism
Companies Commission of Malaysia
Bank Negara Malaysia
01 October 2012
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Before the raid, Bank Negara Malaysia has issued a warning in their “Financial Consumer Alert-List of unauthorised companies and websites” to caution the public about Genneva Malaysia Sdn Bhd.
At the same time, Genneva’s Singapore subsidiary was raided too. It was reported the Singaporean Commercial Affairs Department raided Genneva Pte Ltd.
Genneva Pte Ltd was added to the Investor Alert List of unlicensed entities by the Monetary Authority of Singapore.
How Genneva’s Gold Purchase Scheme Works?
1) You invest(buy) and paid in cash for a physical gold.
The gold was price at 18% to 20% above market rate.
You don’t get the physical gold upon payment as there’s a transaction period. The risk is you may not get the gold if the company is suspended.
This nightmare happen after Bank Negara Malaysia raided the offices and their operation was closed pending investigation.
Therefore, pray very hard to get your money back or the Gold!
2) Genneva Malaysia Sdn Bhd will offer a Guarantee Return of 1.5% to 3% of montlhy “Hibah”(dividends) and promise to buy back the gold after the specified contract end.
Genneva Malaysia Sdn Bhd did not put the promise in black and white.
If you have purchased it, double check it with your lawyer whether this is true. You may show all the S&P agreement and documents for probing.
The Star’s paper reported that Dr Khoo Kong Jong, 58, receive an average return of RM8,000 monthly. He invested RM400,000 in Genneva a year ago since it had a good reputation. The money is used to fund my son’s tertiary education in London. He needs almost RM20,000 every month.
What?
RM8,000 monthly return for RM400,000 of “Investment”?
That’s 24% pa ..which is 8 times more than Fixed Deposit Rate…This appeared to be too attractive!
People will be cashing their money from the banks and buy gold!
Do you known when you get 24% pa in return, it need only 3 years to recover your capital?
IF you’ve invested in Genneva Malaysia Sdn Bhd more than 3 years then don’t worry, be happy!
Genneva Malaysia Sdn Bhd was reported to have 6,000 consultants and 50,000 customers in the country.
Even Warren Buffett’s Portfolio also don’t gave that type of Return.
If it seems too good to be true, it probably is!
The more returns they promise, the more careful you should be
If deals are too good to be true, always think twice before parting your money!
I was invited to their Genneva Malaysia Consultants Appreciation Night 2012 at Bandar Sunway. The special guest was Datin Paduka Seri Rosmah binti Mansor, the wife of 6th Prime Minister of Malaysia. It was a grand event as their top salesperson earned few million in sales commission alone in less than a year!
Let us wait for the outcome of Bank Negara Malaysia’s investigation.
Anyway, this is NOT the first time, Genneva was raided by Bank Negara Malaysia. This was the second time to be exact.
Their previous company was called Genneva.
Genneva’s Syariah compliant gold was officially launched by former Prime Minister Tun Dr Mahathir Mohamad, on Dec 15, 2010.
The company was frozen and suspended pending court action by Bank Negara Malaysia.
It was reported the same directors from Genneva, setup a new company called Genneva Malaysia Sdn Bhd and continue the same business!
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Genneva Malaysia, Syariah Official Launching by Dr Mahathir
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Genneva Malaysia Consultants Appreciation Night 2012
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Raid on Genneva Malaysia Sdn Bhd by BNM
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Another scene from the raid operation by Bank Negara Malaysia on Genneva Malaysia’s office. The crowd are demanding that their gold not to be confiscated by the authorities.
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Official News release at Genneva Gold’s Facebook Page:
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Ten questions to ask before you put your money in the wrong place.
Here are 10 questions to ask before investing in a money-making scheme:
1. ARE the returns too good to be true?
If someone promises you 20% a year when fixed deposits pay 3%, that’s a damn good rate of return. But you need to find out what the risk is. Typically, the higher the return, the higher the risk.
2. DOES it claim to protect your capital?
If your returns are high and the scheme promises to preserve your capital, run as fast as your two legs will carry you. No one, not even the greatest investor the world has seen – Warren Buffett – can promise you that.
3. HOW is your capital protected?
If capital is protected and the return is reasonable, ask this question. If it is merely the word of the scheme or the company that is running the scheme, it will not be worth the paper it is written on if the scheme collapses and goes bust.
4. WHY does the company not make the money for itself?
If you are still convinced that they can give you such a return with no corresponding risk, ask yourself this question. They can very well borrow some money from their bank, sell all their assets or beg from their relatives if they can get that kind of returns instead of letting you make the money. Generosity like that does not exist.
5. HOW much work do you have to do?
The less work you have to do for the returns, the more suspicious you should become. If you are in direct selling, you have to work hard to get your commissions.
But if you are sitting back, kicking off your shoes and putting your feet up on the stool while watching the world go by and your money flow into your bank account, let me tell you something: It won’t last!
6. DOES it pay you when you recruit someone else into your scheme?
If it does, be very careful because that’s the classic way of spreading the scheme. You recruit someone, you get paid, your recruit gets someone, he gets paid – it spreads in geometric progression like wildfire.
But don’t forget, you most likely have not recovered your initial investment. The scam is still accumulating money and waiting for the last minute before it packs up, money and all, and flees.
7. DOES it claim that it has a proprietary product, service or method?
Oldest trick in the book, this one. They have such a fantastic advantage over the rest with this and they are so generous that they want to share it with you so that you will gain from it too. Charity from those who have not made enough money to be that charitable is rather suspect.
8. WHO are the promoters? Are they reputable people with solid track records and businesses built up through hard work? Or are they commission salesmen and saleswomen who have a glib tongue with which they smooth over the pitfalls of their so-called business?
9. HOW long have they been in business?
If they are new to the game, better be suspicious than sorry later.
There are many reputable direct sales organisations and if you are a good salesperson, you can make some money but usually they have been around for a while. I won’t name them, you know who they are.
10. HAS it started delaying payments?
Oh, poor you! If you are in it after asking all these questions and were still, well, conned, it may well be too late.
If they are delaying payments, they either got it wrong and can’t pay you or they are in the process of running and leaving you high and dry. Get the investigators in and salvage whatever you can.
Finally, remember, these scams can be quite smart, sophisticated and rather persuasive. Put them to the test by asking and answering these questions — hopefully you don’t have to answer question 10 by which time it may be too late — and we guarantee you will be safe.
Or your money back. Promise!
> P. Gunasegaram is an independent consultant and writer.
from: The Star
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Genneva Malaysia on TV1
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Worried investor throng Genneva Malaysia’s office
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Investors of gold trading scheme Genneva Malaysia Sdn Bhd converged at the company’s headquarters in Kuala Lumpur demanding answers.
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Genneva Malaysia Supporters
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Genneva English
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Raided – Gold traders Pageantry Gold, Caesar Gold and Worldwide Far East
Gold trading firms Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd were jointly raided on Friday by the police, Bank Negara and Ministry of Domestic Trade, Cooperatives and Consumerism for suspected offences that include illegal deposit-taking, money-laundering, tax evasion and avoidance and false description.
The suspected offences also include misrepresentations and appointment of agents without licence, said Bank Negara in a statement on Friday.
Bank Negara advised the public to check with relevant authorities when dealing with companies or individuals offering seemingly attractive business opportunities or financial services that were not licensed by the authorities.
It advised caution in investing in unregulated schemes.
It said that enforcement agencies would take action on illegal financial schemes to protect the interest of the investors and the public at large.
On Tuesday, the three bodies jointly raided gold trading firm Genneva Malaysia Sdn Bhd and its affiliates in the country for various suspected offences.
Singapore’s Commercial Affairs Department also conducted a similar operation against Genneva Pte Ltd in the republic on the same day.
fr:thestar.com.my/news/story.asp?file=/2012/10/5/nation/20121005182325&sec=nation
BNM: Genneva Malaysia raided for suspected offences including illegal deposit taking
KUALA LUMPUR: The authorities are investigating Genneva Malaysia Sdn Bhd and its related companies for suspected offences which include illegal deposit taking, money laundering, tax evasion and avoidance.
Bank Negara Malaysia said on Friday the other suspected offences included false description including misrepresentations, appointment of agents without licence and failure to lodge statutory documents.
On Monday, the police, BNM, Ministry of Domestic Trade, Cooperatives and Consumerism and the Companies Commission of Malaysia raided several premises of Genneva Malaysia and residences of the company’s directors.
BNM said relevant assets and documents of the companies seized from the raid would be preserved for the purpose of facilitating the investigations.
“The relevant enforcement agencies have mobilised the necessary resources to expedite the investigations,” it said.
The central bank advised the public to check with the relevant authorities when dealing with companies or individuals offering seemingly attractive business opportunities or financial services that are not licensed by the authorities.
“Members of the public are reminded to be cautious in investing in unregulated schemes. The enforcement agencies will take action on illegal financial schemes to protect the interest of the investors and the public at large,” said BNM.
fr:biz.thestar.com.my/news/story.asp?file=/2012/10/5/business/20121005113751&sec=business
40% RETURNS! Too good to be true, yet why do people still keep falling for it
This gold investment, to put it squarely, is too good to be true.
In the beginning, when you first purchase gold with the company, they will hand the solid gold bar to your hands to prove their sincerity.
As if that is not enough, they will sign a contract with you, offering you 1.5% to 3% monthly interests, meaning 18% to 36% per annum of lucrative returns.
If you buy a million ringgit worth of gold bars from them, you will be entitled to RM30,000 of monthly interests, or RM360,000 a year!
The same amount of investment, if put in a fixed deposit account with a commercial bank, will only yield about RM30,000 a year.
The returns will be even higher if gold prices soar.
So, some sell their houses and empty their bank savings to invest with the company, while others take their investment a step further, relinquishing their jobs to become full-time agents for this company.
It is said that some 60,000 have entrusted their fortunes to this company during the past one or two years.
Several months back, a company bearing the same name and associated with it in Singapore was reported to have encountered financial problems. The company was later raided by the authorities after investors lodged reports having failed to receive their promised interests.
Before long, the company in Malaysia was put in Bank Negara’s watch list, its assets frozen pending investigation.
We cannot pass down any verdict before the probe is concluded. Sure enough I hope the investors and agents would escape losses and have their investment sums recovered.
40% returns
If we were to scrutinise this incident carefully, we should be able to draw some good lessons from it.
In the very beginning, the gold bars which they hand over to you are indeed genuine, certified gold bars that are nevertheless sold to you at a price 25% above the market value. In dither words, they have already made some good profits from selling gold to you.
Thanks to the profit margin, they are now able to provide unrealistically high interest rates to lure investors.
In no time, the company has managed to draw massive investment funds to sustain its operations and honour the pledges it has made to customers.
Nevertheless, such operations are not sustainable over the long term unless the company has special investment channels that would yield 40% of annual returns in order to disburse to its clients as interest incomes.
40%! A figure that not even Warren Buffet could dream of. Buffet recently admitted that it would not be easy to even get 10%.
What is left will have to wait until the music stops and see who are unlucky enough not to grab a chair. These are the people who have refused to pull back from their investments and have continued to dump their savings into the bottomless pit.
Who is to take the blame eventually?
No way could the authorities be spared. There is always a grey area in gold investment which be could manipulated by irresponsible quarters for their own benefit.
Meanwhile, the investors must also question the rationality of raking in incredibly good returns without having to move a finger or put on a thinking cap.
Think about this, and we should see what has actually gone wrong.
-Sin Chew Daily
fr:malaysia-chronicle.com/index.php?option=com_k2&view=item&id=42058:too-good-to-be-true&Itemid=2
Investors can lodge reports against gold traders for suspected offences
Investors have a right to lodge reports with the authorities, including Bank Negara Malaysia, against companies trading in gold on concerns over suspected offences.
“If they have a concern (on suspected offences), it is their responsibility to lodge a report with the appropriate authority to protect themselves,” said Bank Negara Assistant Governor, Abu Hassan Alshari Yahaya on Monday.
He was speaking to reporters after the launch of the “Prudent Finance Month 2012”.
The central bank and related authorities had raided four companies involved in the gold trading business on suspected offenses, including illegal deposit-taking, money laundering, tax evasion and avoidance and false description.
The gold trading firms were namely, Genneva Malaysia Sdn Bhd, Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd.
“We want to protect the public from being easily influenced by the promises of high returns and buy-back guarantee on investments. If the returns are very high, the problem is whether, it is sustainable or otherwise,” Abu Hassan said.
Meanwhile, he also said Bank Negara was monitoring closely the household debt, which currently stands at 77 per cent.
“We want to ensure a continuing sustainable level. While, a certain amount of debt does help in terms of boosting consumption and economic activities, we also want to ensure consumers are able to manage their wealth,” he added.
The Prudent Financial Month, organised by Bank Negara and the Federation of Malaysian Consumers Associations, is aimed at tackling financial issues among the people.
It is also focused on improving relations between consumers and financial institutions
fr:biz.thestar.com.my/news/story.asp?file=/2012/10/8/business/20121008152200&sec=business
Consultants and investors show support for Genneva
Some 200 consultants and investors of gold trading firm Genneva Malaysia Sdn Bhd staged a protest and appealed to Bank Negara Malaysia to lift the freeze on the company.
Apparently, more than 2,000 investors and 200 consultants in Johor are affected by the raid.
Yesterday, some of them held placards at the Genneva office here to show support for the company and demand the authorities lift the freeze.
Genneva consultant Sharuddin Mohd Said, 56, said he had invested his entire savings to buy gold.
“I have five family members to feed and I support my youngest child’s tertiary education in Surabaya, Indonesia,” he said at Wisma Sing Long here yesterday.
A nurse Raziah Mohamad, 25, who is a senior consultant, said Genneva was the only way to make her sister’s dream of becoming a doctor possible.
On Oct 1, the police, BNM, Companies Commission of Malaysia and Domestic Trade, Cooperatives and Consumerism Ministry jointly raided Genneva and its affiliates in the country for various suspected offences.
Days later, three other companies, Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd, were also raided.
Meanwhile, the Finance Ministry will ask BNM to provide an update on investigations into Genneva and three other gold investment companies.
Deputy Finance Minister Datuk Donald Lim said this was necessary so that gold investors would be informed about the progress in investigations.
He said this at the 1MCA micro-credit cheque presentation at Petaling Jaya Selatan MCA office yesterday.
fr:thestar.com.my/news/story.asp?file=/2012/10/10/nation/12150295&sec=nation
Probe on gold trading firms shows schemes are unsustainable, say Bank Negara, A-G, police
Investigations into the accounts of the recently-raided gold trading firms reveals that the amount of assets and monies held by these companies do not match the amount collected from their investors.
The schemes offered by the firms were, therefore, unsustainable, said Bank Negara, the Attorney General’s Chambers and the police in a joint press release on Wednesday to give an update on the matter.
“Based on surveillance and examination conducted on these companies, it has been discovered that these companies are operating schemes that are believed to be not sustainable to provide the promised high monthly returns, nor would they be able to provide the buy back guarantee of gold.
“Such schemes are not sustainable because the returns promised are not funded through gold trading, but from the monies invested into such schemes.
“Prior to the joint raids, it has been noticed that these companies had delayed returning gold or money to the investors within the promised stipulated time.
“Such signs are early warning indications prior to the collapse of such schemes that would result in significant losses to investors.
“These raids were conducted in the interest of protecting the investors as well as the public at large from falling victim to illegal schemes,” the statement said.
Gold trading firms Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd were jointly raided on Friday by the police, Bank Negara and Ministry of Domestic Trade, Cooperatives and Consumerism for suspected offences that include illegal deposit-taking, money-laundering, tax evasion and avoidance and false description.
On Oct 2, the three bodies jointly raided gold trading firm Genneva Malaysia Sdn Bhd and its affiliates in the country for various suspected offences.
Singapore’s Commercial Affairs Department also conducted a similar operation against Genneva Pte Ltd in the republic on the same day.
fr:thestar.com.my/news/story.asp?file=/2012/10/10/nation/20121010203706&sec=nation
Raid aftermath: People have a right to know
IF of late gold traders have come under Bank Negara Malaysia’s (BNM) spotlight, 11 years ago it was a company called Ivory Multi Million Sdn Bhd.
The crowd may have been different, but the issues are the same — taking deposits without a licence.
After a crackdown on its operations by BNM in 2001, a manhunt was launched for six of the Ivory Multi Million’s directors and when produced in court were fined RM100,000 and sentenced to a two-year jail term each last year.
A daily’s headline on the judgement read: “6 jailed for accepting RM180 million deposits”.
However, nary a mention of what happened to the RM180 million that came from some 9,000 investors.
An investor who only wants to be known as Raju said he lost up to RM80,000 when Ivory Multi Million collapsed and after 11 years he has given up hope of recovering any of it.
But only 40 years old, Raju can forgive and move on.
The same can’t be said if you are a retiree who had invested all your retirement benefits and have been diligently tracking the case, keeping newspaper clippings and wondering if it’s worth writing a letter to the editor. Such an omission would be perplexing to say the least.
SunBiz’s queries to BNM on the status of the monies from the Ivory Multi Million case also went unanswered.
Isn’t such an omission a grave injustice to investors? And isn’t that the crux of the uproar raised by investors of Genneva Malaysia Sdn Bhd as well as the three gold trading firms that were recently raided by the authorities including BNM?
Central to the investors’ minds are: What is happening to my money?” and “Will it ever be seen again?
If it’s not to be seen again, surely it should be heard of? Someone should be responsible to keep investors informed of the status of their monies. Or even if there is any money left.
Certainly BNM and the other relevant regulators are to be lauded for trying to protect the interests of the public. That is not to be disputed.
What is and should be questioned however is the manner in which the regulators handle affected investors during such investigations.
The joint statement issued by the Attorney General’s Chambers, Royal Malaysian Police and BNM on Wednesday was a step in the right direction. But it was a small step and probably one taken under much pressure.
The argument here is, is it something only to be done when pressured? Should it not be standard operating procedure in matters of public concern? No matter if it was 9,000 or 60,000 people who were affected.
Or does falling prey to a get-rich-quick scheme mean you no longer have a right to know what happens to your money?
Besides how gullible were these investors if Genneva was able to get the Deputy Finance Minister to officiate the opening of its new office earlier this year?
Its all grey here. Not black or white.
Back in 2007, the Securities Commission had proven to all during the Swisscash investment scam that a regulator can keep the public informed of its actions without jeopardising its case.
It not only put up FAQs (frequently-asked-questions) on the scam on its website, but also gave regular updates on the monies held and recovered. Its last update on the action was in December 2011, and it was to let the public know that it had got the accounts of the monies recovered and re-distributed approved by the High Court.
A tedious process I’m sure, but a necessary one to win the public’s trust.
The public has a right to the information , if not the money. So why not start with Ivory Multi Million and show us the money … or the lack of it.
fr:www.thesundaily.my/news/513564