Genneva Gold, or more correctly known as Genneva Pte Ltd, was recently sued for their failure to return customer’s gold and money.
A plaintiff, Lee Bee Ghok, has won an interlocutory judgment against Genneva in the Subordinate Court.
The judgement might very well be a hallow victory because based on the latest filings, Genneva has liabilities that are higher than their assets.
I understand that there are a few other lawsuits that are also ongoing or in the process of being initiated.
I had given a warning about Genneva Gold as far back as 2009. Any company that has promise you a guaranteed return of 2% a month is simply not going to be sustainable.
As with most ponzi scams, they will take some time before they unravel.
Until they do, there will be many people speaking for both sides of the argument. My Genneva Gold article was the actually the most commented article on this site. As of today, it hads over 5000 comments!
It was reported that Genneva had even set up another company Genneva World a few months ago to ask their customers to transfer their gold holdings to the new company.
The relevant authorities should investigate whether there was any fraudulent transfer of assets to the new holding company in a bid to avoid payment to the Genneva creditors.
Other than Genneva Gold, there are a few other companies around in Singapore and Malaysia that offers similar buyback schemes.
For those who are invested into such schemes or thinking of doing so, consider yourself warned. You have to take a personal responsibility to protect yourself. MAS will not protect you as these firms are unregulated, and thus do not fall under the purview of MAS.
As the saying goes, a fool and his gold are soon parted.
Gold trading firm taken to court by customer (Business Times 25 Sep 2012)