Genius Funds - A Sad State of Affairs
I have been blogging about this Cyprus-based company for some time. On February 12, we issued a temporary order 
against Genius Funds alleging that it had breached various securities laws.
Last week, the Alberta Securities Commission issued an interim cease trade order against the company alleging that they have engaged in illegal trading and distribution of funds.
This morning I was pleased to see that the Cyprus Securities and Exchange Commission 
issued a warning stating that Genius Funds “is not regulated by the Commission and the authorisation with the number CIF 087/07, which the above mentioned company alleged that it possesses, is fake.”
Last night, we received a comment which we have posted, blaming us for warning people about a possible Ponzi scheme. Sadly, this is a predictable response from someone who thought that the offer of such high returns (1.9 percent daily on one fund and up to nine percent on a second fund) was possible. Clearly, Genius Funds investors failed to question why these funds can offer returns that are significantly higher than any bank or financial institution offers.
We don’t know how many people have wired money to this website. It could be in the thousands. Remember the website promoted the funds in seven different languages. This fund was promoted extensively on-line, using social websites and classified on-line ads.
As we have seen in so many other cases, when these schemes fall apart, the first response by investors is to deny that it is happening and to blame the messenger. They are often angry and won’t accept advice that tells them that a particular scheme is not viable.
After reality sets in, the tone and response from investors is remarkably different. At this point, they have to face the grim reality that they probably have lost most, if not all, of the money invested.
To read previous posts on this and other topics, click on Let’s Talk about Investing.
Posted by Patricia at 3/15/2010 12:30:00 PM
There are 2 comments:
I've invested in Genius funds and I have complainted to www.ic3.gov (internet crime center) and they have contacted me....I would encourge everybody to get online and complain...all we have now is numbers...and if everybody complaints that is powerful..I'm planning to get ahold of BCSC to see if Genius showes up for their meeting on 4/7..I referred my friend to invest, also...sad times...please tell everybody to go to that sight... If you had lost a big amount here, you can try and report them to these links for scam, fraud, lying and false advertisements :
https://tips.fbi.gov/
http://www.ic3.gov/default.aspx
http://www.cybercrime.gov/reporting.htm#cc
Posted by: Debbie at 3/28/2010 10:42:54 AM
Hello, thank you for your write up. I was told that my withdrawal funds by Genius Funds had been completed 2 weeks ago, and on its way to my bank account. To date my banker told me no such deposit was made. At of this point, they have not kept their part of their promise to pay. Will update if the money did appear. If I do not update my comment, it will mean the money has not come in at all.
Posted by: peter at 3/15/2010 10:09:34 PM
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