Warning against Cyprus-based Genius Funds Issued

Investor warning

The British Columbia Securities Commission (BCSC) has issued a warning about a high yield investment website, Genius Funds, also known as Genius Investment.

The website promotes an on-line investment in seven languages – English, Chinese, Indonesian, French, Spanish and Slovenian. However, BCSC staff believes that the investment is predominantly targeted to Spanish speaking investors.

This warning follows a temporary order issued by the BCSC on February 12, 2010 alleging the company has breached various securities laws.  The public BCSC hearing notice alleges that Genius Funds is making misrepresentations to investors because it offers a rate of return that is impossible to earn consistently through legal means.

The notice says that Genius Funds states that it offers one investment fund that makes payments of up to 1.9 per cent daily and a second fund that makes payments of up to nine per cent weekly. 

In addition, the notice says that Genius Funds states that it offers the Genius High-Yield Deposit Account that earns depositors interest between 14 and 25 per cent monthly. 

BCSC staff has identified social media websites that are being used to promote Genius Funds investments and a referral program where individuals are given the opportunity to earn a six percent commission if they refer someone to the fund who makes an investment.

Any IOSCO members seeking additional information or wishing to share information concerning this matter should contact BCSC Senior Investigator Michael Pesunti at MPesunti@bcsc.bc.ca or at (604) 899-6759.  

The BCSC notice of hearing is a public document and can be found at this link: http://www.bcsc.bc.ca/comdoc.nsf/comdoc.nsf/webpolicies/161D573B853CA17A882576C8005F004F?OpenDocument