Monday, October 15, 2012
Genneva - I don't understand how it's clients are so blur!
I don't understand how so many people think that Genneva is a legitimate company that makes it's profit through selling gold.
The worst part is that many of it's "clients" are actual BUSINESSMEN who sell goods and services to make their living.
Since someone didn't like my "proton car" example and said car depriciates but gold appreciates, I'll simplify and repeat my explanation, hopefull improving it.
Let's take a construction company. Sime Darby. Property appreciates too, right?
So, let's say it costs them 500k to build a house. They sell it for RM1million.
1) Do you think that Sime Darby can afford to pay you 240,000 a year as hibah, as a present for buying the house from them???
If Sime Darby came up with this sort of deal, would you go for it???
2) If Sime Darby signs a contract where they have to buy the house back from you at RM1m after 6 months... do you think Sime Darby can do that???
More importantly, as a business person... if you buy 1kg rice for RM3 and sell it to me for RM5... but I turn around and return it to you and get back my RM5... how much profit have you made? ... that's right, NOTHING, it does not matter how much "profit" you make on a sale if the goods and money are returned!
So, what about a company that combines 1) and 2) ? In other words, Genneva is a company that MAKES NO PROFIT. ZERO. And yet somehow it pays out lots of money.
And none of it's "investors" are suspicious? ...
Generally, I would say that these "investors" are partially guilty of being party to an illegal activity. Because, essentially, all of them are having the attitude "I don't care where Genneva get's it's money from, as long as they pay me my due portion"
So, if Genneva is found guilty of illegal money laundering and all these investors lose their money, it's pretty much comparable to a bunch of people who invested in an unlicensed massage parlor which gets closed down. Sorry for your loss, but you were investing in an illegal activity in the first place...
The worst part is that many of it's "clients" are actual BUSINESSMEN who sell goods and services to make their living.
Since someone didn't like my "proton car" example and said car depriciates but gold appreciates, I'll simplify and repeat my explanation, hopefull improving it.
Let's take a construction company. Sime Darby. Property appreciates too, right?
So, let's say it costs them 500k to build a house. They sell it for RM1million.
1) Do you think that Sime Darby can afford to pay you 240,000 a year as hibah, as a present for buying the house from them???
If Sime Darby came up with this sort of deal, would you go for it???
2) If Sime Darby signs a contract where they have to buy the house back from you at RM1m after 6 months... do you think Sime Darby can do that???
More importantly, as a business person... if you buy 1kg rice for RM3 and sell it to me for RM5... but I turn around and return it to you and get back my RM5... how much profit have you made? ... that's right, NOTHING, it does not matter how much "profit" you make on a sale if the goods and money are returned!
So, what about a company that combines 1) and 2) ? In other words, Genneva is a company that MAKES NO PROFIT. ZERO. And yet somehow it pays out lots of money.
And none of it's "investors" are suspicious? ...
Generally, I would say that these "investors" are partially guilty of being party to an illegal activity. Because, essentially, all of them are having the attitude "I don't care where Genneva get's it's money from, as long as they pay me my due portion"
So, if Genneva is found guilty of illegal money laundering and all these investors lose their money, it's pretty much comparable to a bunch of people who invested in an unlicensed massage parlor which gets closed down. Sorry for your loss, but you were investing in an illegal activity in the first place...
Jasonred79 invested at
2:42 PM
2 Comments
2 Comments:
Jason, I heard from a close friend who knows a senior consultant of Genneva that the whistleblower came from within the network. The rationale is that they knew they were in trouble when they realized they could not cope with the monthly commitment to pay the "investors". Hence, they needed something to stir the hornet's nest and who better than the authorities? Cheers.
BM
Pure greed makes a person blind.
Even well educated people falls for Africa's black money.
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