The following was posted on Jeen Hao blog and LOWYAT GENNEVA forum.
p c wong October 14, 2012 at 12:42 PM
CRAZY DEPOSIT TAKING
You pay 100 units for gold. With 25% premium, the gold cost 80 units and markup is 20 units. After buying gold, GENNEVA got only 20 units left to invest. Pay hibah 3 units, consultant 0.5 units, upline 0.3 units, TOTAL 3.8 units per MTH or 45.6 units per annum. So with 20 units net cash holding GENNEVA must earn ROI of 45.6/20. x 100 = 228% pa just to cover these items !!! What about profit and admin overheads etc?
So how to sustain the operation? Here’s how:
1. They do not need capital, in fact the total paid up capital of GENNEVA M’SIA SDN BHD is only RM50,000 ! Unbelievable when they do billion RM business. Investor must pay up front for purchase and GENNEVA use part of you money to buy the gold. That is why you wait and wait for your gold.
2. They must keep on growing and growing the members to build up the PONZI Pyramid exponentially so that all the new investors money, only the 20 unit part, is used to pay the old investors’ hibah, etc.
3. Every now and then they do sleight of hand to pass you some own branded GENNEVA or SAMUDRA gold, maybe fake gold coated tungsten fools’ gold.
4. They make you play musical chairs game to wait and wait after you paid, maybe for old Buyer’s gold being sold back, or gold being handed in for inspection during rollover. So they did not back every Buyer’s order with real gold but just pass the same piece round and round. Some say only 50% backed, some say 70% back. Whatever, they are playing you for fools.
5. When you sell back, they make you wait and wait and worry like mad for your money!
6. The consultants say hibah and buy back at original price guaranteed BUT in writing they say these are “discretionary” — in the SALE agreement, in the signed acknowledgement form, and in the news ads in the papers. If They fail or refuse to pay you hibah or to buy back, you cannot even sue them.
7. When the pyramid stops growing and there are more sell back than buying in, it is time for their exit strategy. By this time they have a lot of cash in their pockets — your money. They
may just abandon the company like in S’PORE, never send lawyer to fight the court case, OR they may secretly arrange for BANK NEGARA, Police etc to raid Them, then they ask every one to blame the GOVT for spoiling the party. When this happens, they already hide all the money and gold overseas!!!!
NOT MUCH HOPE TO GET BACK ANYTHING FROM THEM.
DO NOT EVER LISTEN TO THAT ONE CALLED ANON ME. HE WILL LEAD YOU TO FINANCIAL RUIN.