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No such business comes with high return low risk

Bank Negara has listed six offences committed by Genneva Malaysia Sdn Bhd.

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.

I have seen similar Ponzi scheme named Gold Coin Trading about 13 year ago in Penang also, a university classmate invited us after the reunion gathering to a seminar about making money in gold coin investment.

Another friend and me advised our classmates that no such high return and low risk investment in the legitimate business world.

I told him that I would enter the scheme IF I were in the first layer to earn easy money from many downliners.

Gold coin scheme busted several years later and many people lost their hard-earned money. None of my classmates falling into that making quick money scheme.

Some businesses can earn up to 50 – 100% annual returns like Arowana breeding in one or two years ago. But the business always comes with very high risk like a whole batch of fishes perished.

Let use your brain, not your little brother to think how and where Genneva got the money to pay 18-36% handsome annual return to investors?

The mark-up price for gold bar sold to investor is 25%, thus how on earth the company can pay 36% bonus?

Do you believe Genneva generates recurring positive cash flow to sustain its business model in the long run?

My answer is BIG NO.

The late coming downliners will be ultimate losers after the cash flow drains out.

Genneva consultants cry foul over ‘deprived money’

GEORGE TOWN: More than 100 consultants and customers of Genneva Malaysia Sdn Bhd here continue to cry foul over the raid on the company.

Apparently, more than 10,000 customers and 500 consultants in Penang were affected by the Bank Negara operation.

Genneva consultant Mary-Irene Ooi, 55, insisted that many of them had put their life savings into a legitimate business.

“We are buying gold, which is universally accepted. Like other goldsmith shops, Genneva is also selling gold but on a different platform in a scheduled and regulated manner.

“Bank Negara is free to conduct a probe on the company, but please do not take away our money,” she said at a press conference organised by the company at its office in Gelugor here.

Another consultant Yeoh Ah Guak hoped that the suspension would be lifted immediately.

“I have been using the returns to fund my children’s education,” said the 49-year-old. “Many retirees are also relying on these to pay their medical bills.”

S. Venkatason, 64, claimed that following the raid on Genneva, he could no longer support his daughter’s tertiary education amounting to RM1,000 monthly.

“I have been enjoying the returns for the past two years and everything was smooth sailing,” he said. “I’ve been having sleepless nights for the past one week.”

Venkatason also urged the authorities to expedite their probe into Genneva so it could resume operation soon.

Earlier, Genneva regional director Datuk Joseph Kow held a closed-door meeting with consultants and customers at the office in Jalan Tengku Kudin.