It has been awhile since I last wrote my first blog, Genius Funds – Beyond Belief. Since then, a whole series of events have unfolded, beginning with our temporary order alleging that the Cyprus-based company had breached BC securities laws. Since then, several Canadian provinces have issued investor alerts, the Alberta Securities Commission has cease traded it, and the Cyprus Securities and Exchange Commission warned that the company is not registered or regulated by the Commission.
Comments to us and on Facebook suggest that the Canadian government shut down the website. Someone posted a statement from a “Mark Stelvo” from Genius Funds saying “it is currently updating its website to comply with the ruling from the Canadian Judicial System.”
Simply not true. While several Canadian provinces have issued warnings and temporary orders, they do not have jurisdiction to shut down the website. If the website is indeed shut down, investors need to recognize that Genius Funds is, in my opinion, a classic example of a category of funds known as high-yield investment programs. Plain and simple, they are nothing more than another name for a Ponzi scheme.
As stated in Wikipedia, a high-yield investment program (HYIP) is a type of Ponzi scheme, which is an investment scam that promises an unsustainably high return on investment by paying previous investors with the money invested by newcomers.
So please tell you friends to avoid HYIPs at all costs, no matter what the website looks like, no matter how easy it is to send money! In the end, they all collapse and investors are left wondering what happened to their investment.
To read previous posts on this and other topics, click on Let’s talk about investing.
Research shows that just under half of Canadians have a financial advisor. If you rent your home, or have more debt than savings you’re less likely to have an investment advisor. By comparison, if you have a family, are female, or older than 65 then you’re more likely to have an advisor. Being the government […]
BCSC staff ambassadors tour the province, helping people to protect themselves from fraud and unsuitable investments. Our goal is to enable BC investors to develop critical thinking skills so they can become more informed of steps they should take to protect themselves when investing. Where we are this month Coquitlam February 19 2:00 pm Telling […]