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.
Illegal investment solicitations can happen through cold calls, email, or through social media channels. Today, BCSC InvestRight is launching its first video in our new Spot Investment Scams video series. This video shows what can happen if you don’t know the investment fraud warning signs and fall victim to a scammer soliciting people over the […]