I continue to write about this Cyprus-based company because people may be seeing their offers of 1.9 percent daily or nine percent weekly on social media websites where people are promoting Genius Funds. They may also be seeing the advertisements in on-line classified ads.
Last week, we issued a temporary order against Genius Funds alleging that the company had breached various securities laws. Yesterday’s blog talked about responses to my blog that were surprising to me. Comments like “any person can … make over 100% on their money.” In my opinion, claims of high returns raise all sorts of red flags.
We are a securities regulator and unfortunately, we see all to often that people fall for the age-old offer of high returns with no or low risk. There is no such thing as high returns without risk. Doesn’t exist. Not possible in a legitimate investment.
Take Gold-Quest International for example. We issued an investor alert in March 2008 stating that we were investigating an investment that offers people unusually high annual returns – 87.5 percent – and commissions for bringing in new investors. In this case, Canadian investors were approached to invest in a “family and friends private placement program” in which Gold-Quest International, an offshore company, would trade in foreign exchange markets (forex) on their behalf.
Persons supposedly representing Gold-Quest have told investors that they can earn money by referring new investors to the program. They were offered commissions of 10 percent of the amount the referred person invests. These people were not registered to sell securities in British Columbia.
So please pay attention. Don’t believe everything you read on the internet. Do your homework. With the temporary order, Genius Funds cannot engage in any investor activities in the province of BC. Nor can it trade in securities in BC.
To read previous posts on this and other topics, click on Let’s talk about investing.
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If it sounds too good to be true, then chances are it isn’t true. A simple rule to follow right? If only, because sadly year-after-year, Canadians continue to fall for investment scams. They may be pitched an opportunity to earn high returns that are guaranteed and risk-free. Or, the investment is off-shore and tax-free. Maybe […]