Francswiss: Ponzi Scheme - SEC

SEC renews warning vs Internet-based Ponzi schemes
By Zinnia B. Dela Peña
Wednesday, July 4, 2007

The Securities and Exchange Commission (SEC) has renewed its warning to the public against the re-emergence of companies engaging in Internet-based Ponzi schemes.

A Ponzi scheme is a type of investment fraud wherein an operator promises high financial returns that are not expected from traditional investments. Instead of investing the victims’ funds, the operator pays the original investors with the money given by subsequent investors. Usually, enough money is returned to the original few investors to make them believe that profits are actually being realized.

In a notice to public, the SEC said Francswiss, Swiss Cash, Universal Forex System, Global America and Private Forex Trade Inc. are not registered entities and are thus not authorized to solicit investments from the public.

It could be the start of the collapse of Francswiss. Some of my friends havent recovered their investment yet. But even if they did, there would be some others down the line who wouldn't be as lucky. This is the very reason why I did not join.

Sabi ko na nga ba.