swiss cash net scam

Since the publication of the earlier article on swisscash.net, Naavi.org has been receiving more enquiries about the genuineness of the scheme.

We would like to warn the investors again that the scheme has all the ingredients of a budding scam and it is prudent to steer clear of it. As it happens in all such scams, initial investors do get back the promised returns but when the chain has grown big, the bubble bursts catching several unwary investors.

The banning of the site in Malaysia is a possible event which could trigger a problem for the scheme.

In the unlikely event of the scheme continuing to earn 300+ % return and meeting its obligations, there would still be a doubt on what legal business can be run with such a high rate of return. Most likely the money may go for illegal activities including drug peddling and such other money laundering activities.

We consider that the Indian foreign exchange regulations do not permit investments in mutual funds where the final investment policy is not known. It could also mean a violation of SEBI regulations.

We have requested RBI and SEBI through the following communication to clarify the matter.

Message sent to RBI through their website: (31/07/07)

"I draw your attention to my article http://www.naavi.org/cl_editorial_07/edit_july_19_2.htm where I have highlighted the activities of www.swisscash.net. RBI must clarify if investments in the mutual fund are considered approved or take the responsibility for the public to presume so.... Please let me have your reply at the earliest so that it can be put up on my website www.naavi.org in public interest. .. Naavi"

Message sent to SEBI through email sebi@sebi.gov.in:

Dear Sir,

I would like to bring to your notice the activities of the website www.swisscash.net which is attracting investments from several Indians for a foreign mutual fund.

The fund promises returns of 25% per month and works on marketing by investors themselves. The Malaysian Government and Swiss Governments have held the activity as "not approved". Details can be found on my website www.naavi.org at the article: http://www.naavi.org/cl_editorial_07/edit_july_19_2.htm

There is insufficient disclosure and there is a possibility of the money being diverted for money laundering.

I request SEBI to clarify if the scheme is considered legal. In case I donot get a reply to this e-mail, it may be presumed that the scheme carries the approval of SEBI.

If in future the scheme turns out to be a "Fraud" as I envisage it to be, then SEBI may be held as contributing to the fraud by their silence.

This mail is also being reported for public information at my website www.naavi.org

Naavi
31, July 2007

On receipt of the clarification from RBI/SEBI we shall place them in the website. However, even if RBI/SEBI donot send their reply, our opinion stands.