Bank Negara has released an update on the investigations into Genneva Malaysia. Below is a part of the press release

“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 ...