According to Bank Negara, Genneva Malaysia’s debt was over 10 times the amount of its assets despite having sold the precious metal at up to 25 per cent higher than the market rate, signalling that the venture was unsustainable in the long run.
The central bank also said early checks showed that Genneva Malaysia had relied heavily on cash from new customers to keep it afloat.
The firm's alleged violations included include taking deposits without giving gold in return, money laundering, evading taxes, appointing agents without licence, failing to file statutory documents, and misrepresenting itself as an investment firm and giving false descriptions on its business after several people lodged complaints with the police.
Bookmarks