Wikipedia, the free on-line encyclopaedia, says unequivocally that these on-line investment opportunities are a “type of Ponzi scheme.” There are hundreds of them offered on-line, coupled with other websites which rate and analyze their performance, including their ability to pay.
When the BC Securities Commission banned Genius Funds, a high yield investment program, from selling securities in British Columbia, we learned that many investors from all over the world were investing in this fund. Calls came in to our inquiry line and comments were sent to our InvestRight.org blog. It told us that this whole category of funds merited some attention. We needed to warn investors about the ramifications of sending your money to invest in these funds.
Take a look. See what you can find out about who is managing these funds, where they are located and any explanation about how the money is being invested. Some information may be given. Often there is no hint as to who manages the fund. You may find out that the company is based in the Seychelles, the British Virgin Islands or Panama. Interesting to note that many companies are incorporated in countries with lax fraud laws to secure immunity from laws in other countries.
You might also want to do some research on the internet payment systems: Liberty Reserve, Perfect Money to name two. In short, do your homework. And remember that all Ponzi schemes eventually collapse and investors lose all of the money that they have invested.
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The British Columbia Securities Commission (BCSC) today announced that it will notify investors who lost money as a result of investing with Canadian Pacific Consulting and Michael Robert Shantz to make an application for compensation. The funds ($131,781.34) were ordered to be paid to the commission on May 22, 2012. Under changes made to the Securities Act in […]