[Updated 6 October 2012] Before the raid by Bank Negara, Genneva Malaysia management inform all their consultant that they will get their gold, hibah and commissions on early October. With the Genneva BNM raid on Monday 1 October 2012 going on, all Genneva Malaysia Sdn Bhd asets and bank account has been frozen. Almost all Genneva Malaysia gold investors are in shock with the news with some of them has been invested a very large sum of money and life saving into the scheme. Some even quit their job to be a fulltime consultant for Genneva Malaysia. At least 60,000 investors are affected with the recent raid by Bank Negara.
Here are some latest news about Genneva Malaysia which has been raided by Bank Negara Malaysia (BNM) on 1st October 2012:
Malaysia Genneva latest news report:
The Star news (3 October 2012) reported, Bank Negara Malaysia spokesman Lee Poh Fong said a statement would only be issued after investigations had concluded. There is nothing wrong with gold trading but we want investors to be careful against those promising high returns,” she said, referring to a previous press release issued on Sept 5. According to the Domestic Trade, Cooperatives and Consumerism Affairs Ministry's enforcement division, one of the four government agencies involved in the raid of the firm, the action was in response to numerous complaints by investors. Division head Mohd Roslan Mahayudin said besides Bank Negara, the lead agency heading the operations and investigations, the ministry had also been receiving complaints over the past four months from people who had allegedly lost their investments. He said, the decision to raid Genneva was carried out by a task force led by BNM to probe get-rich-quick schemes.
The Star news (3 October 2012) reported, Genneva Penang director Datuk Joseph Kow held a closed-door meeting with some 100 consultants and investors at the office yesterday, where many of them expressed confidence in the firm's legality. It is believed that among other things, Kow spoke about the raid on Monday and that more information would be released when company chairman, Tengku Muhaini Sultan Ahmad Shah, returned from London.
The Star news (3 October 2012) reported, a senior official of the company claimed that Genneva had not violated any laws. The official, who wished to remain unnamed, said the firm wrote to the Finance Ministry earlier this year for guidance on gold trading and had also given its views on the business. He said the ministry replied that a meeting would be arranged to listen to Genneva's views and suggestions on gold trading. So far, there has been no feedback on when the meeting will be held. We thank our customers for supporting us. We are purely a gold trading company. We will work hard to resolve this matter as quickly as possible.
Sabah Daily Express (4 October 2012) reported The Genneva Malaysia Sdn Bhd branch office here appeared open despite action taken by the authorities on its main office and affiliates in Kuala Lumpur. A check at its branch office at KK Times Square on Wednesday afternoon indicated everything was calm although there were no investors present there then. At its front door was a small signage stating "CLOSED" although they did accept anyone who wished to come in. The counters also remained open with at least one counter clerk operating it. However, there was a notice pasted by the management on the wall outside the main door to notify its clients about the problem faced by the company, saying the company is doing its best to clear up the matter with the relevant authorities concerned. A Daily Express reporter who checked the office was asked to leave the moment she introduced herself to the clerk at the counter. City Police Chief ACP Jauteh Dikun, when contacted, said they have yet to receive any directive to follow up on this matter here. However, it was unclear whether the company in Time Square comprises the same Board of Directors as that of the July raid. Bank Negara officials, when asked, declined to comment on the matter but asked the Daily Express to keep to what was stated in its statement.
The Star news (4 October 2012) reported, MCA Public Services and Complaints Department chief Datuk Seri Michael Chong said he almost invested in Genneva Malaysia Sdn Bhd too. He said he was having bak kut teh with two friends two months ago when one of them told him about the gold trading scheme. He said he heard about it from another friend. It sounded like a good deal and I was very excited. However, the friend who recommended the scheme later changed his mind. He said the deal sounds too good to be true and told us to hold onto our money. He hoped people would be careful before investing in similar schemes. "The more returns they promise, the more careful you should be,” he said. “I think I should also thank my wife who is the one controlling my money.” He said.
The Sun Daily news (4 October 2012) reported, Penang-based Gold Bullion Entrepreneurs Association of Malaysia (GBEAM), a body to promote gold bullion trading, has expressed concern by the action taken by the authorities against gold trader Genneva Malaysia Sdn Bhd, saying it has left its 7,000 members confused. a GBEAM spokesman told SunBiz, our members have complained, saying if there is no regulation how can a gold trader have contravened? As of now, the situation is tense. Some are talking about having a rally or a march (to protest against the raid). Genneva Malaysia Sdn Bhd is a corporate member of the association. The association, which has gold traders as its members was set up to promote gold bullion trading among the people and to educate the importance of gold in hedging against inflation through gold talks and exhibition. When asked if GBEAM is seeking a meeting with Bank Negara for clarification, the spokesman said it is unlikely to do so.
The New Straits Times news (5 October 2012) reported, 4 police reports have been lodged against Genneva Malaysia Sdn Bhd over gold trade worth RM5.3 million. It was understood that one of the reports was lodged by the Muslim Consumers Association last month, alleging that the company's gold trading business had violated Islamic law as mentioned by the Fatwa Committee of the National Council of Islamic Religious Affairs Malaysia (NCIRAM). The report was lodged at the Ampang police headquarters. An association spokesman said the report was lodged after they received almost 30 complaints about the company from investors since May. Meanwhile, three other reports were lodged by investors, including a 44-year-old manager from Singapore. It is learnt that the woman, who bought gold bars from Genneva Pte Ltd in Singapore in 2009, had wanted to take out her gold bars from the company upon maturity. The woman further claimed she sought the help of her consultant but was given the runaround. After much pestering, the woman was told that the gold bars were kept at the Genneva Malaysia Sdn Bhd office in Jalan Kuchai Maju 6 here. Meanwhile, another complainant, a technician in his 20s, claimed that he bought 150g of gold from the company for RM29,700 in May. He got the gold bar and received three months hibah (gift) from the company. The company, however, failed to pay him back his money when he returned the gold bar to them last month. He lodged a police report after waiting for almost a month. The last report was lodged by a 44-year-old self-employed woman who had bought gold bars worth RM260,000 at the end of last month. She was shocked when she found out the company's business dealings were not endorsed by Bank Negara.
Bank Negara Malaysia press release (5 October 2012), Joint raids were carried out today on Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd by the Royal Malaysian Police, Bank Negara Malaysia and the Ministry of Domestic Trade, Cooperatives and Consumerism for suspected offences among which could include illegal deposit taking, money laundering, tax evasion and avoidance, false description including misrepresentations and appointment of agents without licence. Members of the public are advised to check with the relevant authorities when dealing with companies or individuals offering seemingly attractive business opportunities or financial services that are not licensed by the authorities. Members of the public are reminded to be cautious in investing in unregulated schemes. The enforcement agencies will take action on illegal financial schemes to protect the interest of the investors and the public at large.
The Borneo Post (8 October 2012) reported, Yesterday morning about 100 Genneva traders gather in a peaceful rally at Sibu Gateway to exchange views and voice their opinion of the unexpected freeze with several of them displaying posters. They said they were confident of the management of the company, seeing it had been launched by ex-prime minister Tun Dr Mathadir Mohamad on Dec 18, 2010 with newspaper cuttings of the event distributed. There was no hidden agency in the buying and selling of the gold trade with all payments made either through cheques or Automated Teller Machines (ATM) that were auditable at all times.
Genneva Malaysia Facebook page:
In Genneva Malaysia official Facebook page (www.facebook.com/GennevaWorld), some Genneva supporters posted a note about "Genneva supporters March to Putrajaya" to Meet our Prime Minister, Dato' Sri Najib Tun Razak. No date has been decided yet but many of them against the idea. Here are what the actual notes:
We were informed by Genneva management last week that we will get our gold, hibah and commissions this week. On Monday 1 October 2012, Bank Negara Malaysia raided Genneva Malaysia Sdn Bhd and froze GMSB's bank account. More than 60,000 families and their livelihoods are affected.
1. Gold confiscated by Bank Negara Malaysia to be returned to Genneva Malaysia Sdn Bhd (GMSB) immediately for delivery to us.
2. Unfreeze GMSB CIMB bank account immediately as Hibah and commissions to over 60,000 customers are due.
3. Stop attacking, persecuting and tarnishing Genneva Malaysia Sdn Bhd in the media for assumptions and suspicions without evidence.
4. Remove the good name of Genneva Malaysia Sdn Bhd from the BNM Consumer Alert List as gold trading is an unregulated industry in Malaysia.
5. Acquit Genneva Sdn Bhd. This court case is ongoing since 2009.
More to follow. LIKE http://www.facebook.com/GennevaMalaysiaSupporters for updates on the march details. Post all videos and photos you may have at the wall.
~ Genneva Malaysia SupportersSource: www.facebook.com/GennevaWorld
Bank Negara Malaysia press statement (3 December 2012), Status of Investigation on Genneva Malaysia Sdn Bhd.
Following recent raids on several companies suspected of operating illegal investment schemes using gold, the enforcement agencies would like to provide the following update, specifically pertaining to investigations into Genneva Malaysia Sdn Bhd.
Initial forensic accounting has uncovered considerable losses being experienced by the company in 2012 and the company has liabilities exceeding 10 times its assets. The actual operations of the company by selling gold at about 20% to 25% higher than the market price, paying returns of about 2% to 3% per month to customers and buying back the gold from customers at the initial purchase price has not been a sustainable venture. In this regard, the cash flow for the company to sustain its operations has relied heavily on the monies collected from new customers.
Seized documentation has revealed that more than 8,000 customers of the company who have paid for gold have yet to receive their gold amounting to more than 4,000 kilograms. In addition, the records also show that there are customers who have surrendered their gold to the company but have yet to receive their cash reimbursement that amount to more than RM80 million.
The various enforcement agencies have received numerous appeals from affected parties in respect of Genneva Malaysia Sdn Bhd, for the release of monies frozen (RM99.8 million) and gold seized (126 kilogram) secured as evidence1 of suspected offences. Such monies and gold are required for the investigations and will only be dealt with at the direction of the courts. Members of the public are advised to refer to Bank Negara Malaysia’s website for further information. Further information will be provided as the investigation progresses. Every effort is being made to expedite the investigations to facilitate an early conclusion to the matter.
Joint statement by:
Bank Negara Malaysia
The Royal Malaysian Police
Ministry of Domestic Trade, Cooperative and Consumerism
Companies Commission of Malaysia
The Star news (9 December 2012) reported, a large group of investors and supporters of Genneva Malaysia Sdn Bhd, the gold investment company now being investigated by Bank Negara, handed over a memorandum to Datuk Seri Najib Tun Razak during his walkabout at the Bayan Baru market, near here. The three-page memorandum urged the Prime Minister to formalise gold trading guidelines for the country and, additionally, to lift the freeze on Genneva’s accounts and gold.
The Malaysian Insider (20 December 2012) reported, nine investors have filed a suit in the High Court here against Genneva Malaysia Sdn Bhd and four others for misrepresentation and fraud. Lawyer Mohamed Siddiq Azani, representing the nine investors, told reporters here Thursday that his clients are claiming RM2mil that they have invested. He said his clients are suing for misrepresentation by the four defendants on the pretext that the scheme was shariah-compliant. They have named Genneva and its directors Tengku Muhaini Sultan Ahmad Shah, Philip Lim Jit Meng, Ahmad Khairuddin Ilias and Tan Liang Keat as defendants in the suit.