REPORTS: Gold Nugget Invest (GNI) Has Collapsed; Belize Issued Warning In November, But Program Pitched On Surf’s Up In December
The government of Belize put out a warning on GNI in November.Â Some members said the warning was meaningless, and continued to tout the program. GNI’s website now says it is offline for maintenance.
“We are busy updating our site for you and will be back soon,” the site says.
A purported announcement by the company of multiple problems — everything from “catastrophic script failure(s) to potentially catastrophic hackers” to an apparent banking investigation in Europe that led to assets being frozen — was circulating among members today.
The purported announcement is filled with baffling prose, and members are trying to figure out what it all means.
Here are a few paragraphs:
As we welcomed Year 2010, we (Principals, Staff and Associates) felt the need to reflect on the challenges GNI faced and were able to overcome; and what if anything, we could learn from having faced these challenges.
These challenges were broad in scope – which included catastrophic script failure(s) to potentially catastrophic hackers; from being flush with cash when we shouldn’t have been and devoid of funds when we should have (had ample amounts). Despite these hardships, and in contravention to those who wish nothing but our demise, never did we consider abandoning our friends and associates without whom we never would have experienced, learned and grew with the project uniquely known as GNI.
The last quarter of 2009, however, placed significant obstacles in our pursuit of success, each having the capability of wiping out any well-managed program, anywhere!
During the Christmas / New Year Holiday, needing a crystal clear vision of our financial vortex, I met with Jurgen and others to obtain their trading reports and declare our Profit / Loss position to the Principals of GNI. With Arthur leading the way, we were able to evaluate with no uncertainty, our financial, technical and situational oversight in preparation for year 2010.
Specifically, we looked at:
1. Yesilada Bank. That entity having the most significant impact is / was the freezing of assets by the German Authorities, of Yesilada’s Correspondent Bank. This particular frozen account contains all of Yesilada’s client’s foreign exchange funds. There are dozens of legitimate clients, along with GNI, whose lives have been put on hold pending the resolution of an investigation which has NOTHING to do with GNI. It’s a matter of being at the wrong place at the wrong. time.
Twenty-three weeks without the availability of OUR (and some of our best clients) funds, while continuing to honor our obligation of paying interest on those funds becomes a loss ranging from 10% – 12.5% a week. We arrive at those numbers simply by adding the percentage we could have received (which fluctuates based on the traders success) had they not been frozen, with that percentage we would have otherwise not had to pay out; over a twenty-three (23) week period. If we released the actual dollar amount that is involved, the numbers become staggering if not overwhelming.
As significant as this amount became, it was a manageable scenario using reserves and our favorable Forex positions. In defiance of all economic logic, the dollar began and continues to this day to gather strength against the Euro; weakening our positions considerably.
2. New Competition. About the same time (late September, early October) several well-managed, aggressive and unique Sports Arbitrage programs came on-line decreasing our market share, not in terms of investment dollars, more so for viable arbs.
The bottom line seems to be that GNI, which almost certainly operated as a Ponzi scheme, doesn’t have the cash required to sustain itself — and doesn’t have the cash to pay members.
The pitch appeared on the Pro-AdSurfDaily Surf’s Up forum, saying in all-caps, â€œALL MY EGGS ARE NOT IN ONE BASKET.
â€œI MAKE $2000.00 A WEEK.â€
The promo later was deleted at Surf’s Up.