Tuesday, October 2, 2012

Gold Fraud Alert: Authorities in Malaysia, Singapore raid gold trader Genneva's offices

From TheStar:
KUALA LUMPUR: The authorities in Malaysia have raided gold trader Genneva Malaysia Sdn Bhd and its affiliates for suspected offences under the laws administered by the respective enforcement agencies.
Bank Negara said on Monday the joint raiding operation was carried by the police, Domestic Trade, Cooperatives and Consumerism Ministry, Companies Commission of Malaysia and the central bank.
http://biz.thestar.com.my/news/story.asp?file=%2F2012%2F10%2F1%2Fbusiness%2F20121001171542&sec=business

From the Central Bank of Malaysia:
Members of the public are advised to be careful and not fall prey to these schemes. Be careful if these operators approach you with the following proposals:
  • The approach may have been by mail, telephone, Internet or in person, but the intention is always the same, that is, to take money from unsuspecting victim for goods or services that they have no intention to provide.
  • Schemes which promise interest rates, returns or profits, which are much higher than the returns offered by licensed financial institutions for their deposits.
  • The promises of high returns are aimed at attracting the public to participate in the schemes and the investors may not be given any copies of the complete agreements by the company.
  • There is also no assurance that the operators of such schemes can continue to pay the high returns.
  • At the beginning of such schemes, the operators are able to use money received from subsequent depositors to pay high returns or to repay the principal amount to earlier depositors.
  • However, the operators cannot invest the deposits in equally or more lucrative ventures or investments and therefore cannot sustain the high returns or repayment promised to their depositors.
  • Please note that these schemes will fail if there are no new deposits being continually received by the operators. At that time, such "get- rich-quick" schemes will collapse and the depositors or investors will lose their investments.
http://www.bnm.gov.my/microsites/fraudalert/06_faqs.htm

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