REPORTS: Gold Nugget Invest (GNI) Has Collapsed; Belize Issued Warning In November, But Program Pitched On Surf’s Up In December

There are multiple reports that the Gold Nugget Invest (GNI) HYIP has collapsed — although the early spin is that the program is embarking on a “Re-organization.”

The government of Belize put out a warning on GNI in November.  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.

We reported weeks ago about the Belize warning about GNI. (Also see our Dec. 4 report about an “egg-themed” pitch for GNI and three other HYIPs.)

The pitch appeared on the Pro-AdSurfDaily Surf’s Up forum, saying in all-caps, “ALL MY EGGS ARE NOT IN ONE BASKET.

“I MAKE $2000.00 A WEEK.”

The promo later was deleted at Surf’s Up.

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9 Responses to “REPORTS: Gold Nugget Invest (GNI) Has Collapsed; Belize Issued Warning In November, But Program Pitched On Surf’s Up In December”

  1. Don’t you just love it that they use every excuse in the book as to why they failed except the truth. What I truly found interesitng in all of their psycho-babble was they said they were trading in Forex. Nothing was ever said, to my knowledge, to the members they were doing Forex trading. To hear GNI tell it, they always win, never have a losing position in their trading.

    What was also interesting is that I talked to 3 offshore sports arbitrage betting firms about having U.S. clients. They made it very clear they do not accept any clients from the U.S., as it is illegal for them to participate. They also said if they did, they “KNEW” the U.S. authorities would come in and shut them down. Not maybe, possibly, a chance, but “THEY WOULD.” First time I have had that said to me from a company operating offshore.

    Yet, GNI had absolutely no problems enrolling US members. When the Belize goveernment not only said they were not licesed as a gaming company to do business there, but not registered at all, is when GNI started trying to change the rules. Of course the faithful knowing that Robert was the monst honest admin ever, would not lie, and this was all just an evil government plot against a successful company. Hmmm, wonder where I heard that one before?

    It is going to be fun to see all the supporters hadnling this news. Wonder if they will do a tea bag and Kool-Aid packet letter campaign? I’m sure someone will send Robert cookies and praise him to hang in there. Only problem is they don’t really know where Robert is. One group had made arrangements to meet him over Christmas and New Year’s, and he and the staff were a no-show. Yes, this honest admin ever stiffed them. No meeting them at the airport as promised, nor at the hotel for their entire stay. They were not happy. Defenders of GNI said it was a made-up story. Too funny, but also sad.

  2. >> It is going to be fun to see all the supporters hadnling this news.


    The strangest claim I’ve seen so far today is that “Most people are in profit in GNI.”

    This presumably didn’t include a woman who purportedly put in a “5 figures amount” recently — or anyone else who put in money recently.


  3. Patrick:

    One of their complaints was the membership taking advantage of the referral commissions. Now where have we heard that one before? LOL! They said: “Referral Program Abuse. When developing the business model to run and grow this project, included was a percentage to reward those who introduced GNI to prospective members (The Referral Plan). The abuse and fraud perpetrated by members who have become wealthy resulting from their participation in this program, at the expense of non-abusing members, the Principals and staff. who played by the rules, is disturbing!! The outlay of funds for payment of ill-gotten commissions is sufficient to end any well-meaning program!!”

    Hmm, guess a lot of ASD and AVG people, who know how to gin the referral system, must have been members. Wonder if we will next hear how someone “stole” millions?

    They also made the program a 14 month program, and they can’t just get interest, but will include principal as well. Not going over well with the faithful.

    What they don’t get is they have told them they cannot operate as a viable company. There are not enough new people being brought in to keep the Ponzi going. They have as much admitted this in this update and change in the program. They have given themselves cover for 14 months before the faithful realize they are gone.

    There is a whole lot more in this update that is just too bizarre for words to describe. What is even more incredible is they have been using the bank issue for the past 5 months, and now they are saying they have no idea how much longer it will be before the bank clears it all up. What a load of BS. A real bank would have had this issue cleared up in a week, two weeks tops. But it is fun and entertaining reading.

  4. I have been watching this one for quite some time. Many tried to convince me this was real back in August of ’09. I told them it was just another HYIP.

    Now maybe they will listen when I talk!

  5. […] Gold Nugget Invest (GNI): Collapsed Friday. HYIP. Government of Belize issued warning in November. Ownership hidden behind proxy. Business model unclear. Presented as betting arbitrage, but perhaps was involved in forex. Advertised payout of 7.5 percent per week. Possibly linked to European banking investigation. Changed rules on the fly. Still collecting money after “Re-organization.” Possibly linked to European banking investigation. Purportedly launched in October 2006, the same month ASD was preparing for launch. […]

  6. […] Nugget Invest (GNI) collapsed in early January 2010, about a month after the egg-themed promo had appeared on Surf’s Up. Surf’s Up went […]

  7. […] the acronym GNI while purporting to pay a Zeek-like 7.5 percent a week. The government of Belize issued a warning about GNI in November 2009. In December 2009 — after the GNI warning by Belize — the […]

  8. […] The collapse of the original GNI was about as bizarre as they come in HYIP land. Critics were told to concentrate on earthquake relief in Haiti, rather than questioning the HYIP scheme. GNI’s collapse purportedly occurred after its operators sought “a crystal clear vision of our financial vortex.“ […]

  9. […] “Ken Russo” dubbed Zeek an “AMAZING PROGRAM” in May 2012. Three months later the SEC dubbed it a $600 million Ponzi- and pyramid fraud. The original GNI collapsed in 2010 into a sea of incongruity, amid reports the operators were seeking a “a crystal clear vision of our financial vortex.“ […]