Responses to Genius Funds: Beyond belief
I received two surprising responses to my blog last week about Genius Funds. In my blog, I said “If you can believe it (and I hope you don’t) Genius Funds is offering payments of up to 1.9 percent daily on one fund and up to nine percent weekly on a second fund.” I reminded people of the old adage, if it is too good to be true…
The reason I was writing about this Cyprus-based company was because the BC Securities Commission issued a temporary order against Genius Funds, citing its breach of various securities laws.
Here’s what one correspondent said: “Any person can invest in Funds anywhere and make over 100% on their money.” Here’s what another one said: “Genius has a “lock in” period of capital for 9 months so they can actually work in stock market, futures and forex with your money for 9 months…they pay a very high interest, but they also diversificate in all the world.”
Let me take you back to a Ponzi scheme called Manna Trading Corp. In this case, Manna convinced investors to loan it money by promising significant monthly returns. Manna told them that their money would be managed by experienced traders with a history of producing exceptional returns through foreign currency trading. Manna was promising returns of not less than 20% a month. Sound familiar?
At the Manna hearing, Dr. Peter Klein, an expert in international banking and trading, gave an opinion about promised returns. He concluded it was simply impossible to generate returns of even 5%, month after month, through any legal trading or investing in any financial markets. 800 investors lost $10m US in this scheme.
From my experience, all Ponzi schemes offer high returns. That’s how they extract money from investors.
So please pay attention. With the temporary order, Genius Funds cannot engage in any investor activities in the province. Nor can it trade in securities in BC.
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