GNI Members: Failed Program Was ‘Honest’ And ‘Real’; Critics Should Shut Up And Focus On Haiti Earthquake

Critics of Gold Nugget Invest (GNI), the collapsed Internet HYIP, do not understand that the program that advertised a return of 7.5 percent a week was “real,” according to a member writing on an online Ponzi board.

Bickering about GNI only will lead to additional problems for the company, which is faithfully trying to reorganize, and the critics should send money to Haiti instead of infecting the membership with negative thinking, according to the member.

“[W]hy not use your idle time for [the Haitian people?]” the GNI apologist asked on the ASA Monitor Ponzi board. “l doubt if you can do that ‘cos that is your true nature.”

Haiti suffered a devastating earthquake Jan. 12. As many as 200,000 people are believed to have perished.

In earlier posts, the apologist suggested that GNI critics were suffering from “mental illness” and observed that, “I will be very grateful if GNI runs for 20 years as a pronzi (sic) !!!!”

The poster did not explain how a program purported to be a “real” business could create legitimate profits by operating as a Ponzi scheme.

GNI, which positioned itself as a betting “arbitrage,” tanked last week. It is among a number of recent investment programs using the name of a precious metal or a precious mineral that have encountered difficulty either from members or law enforcement. GNI did not publish verifiable financial information. There is no way to verify GNI’s claims, including an apparent claim that certain resources are tied up in a purported banking investigation in Europe that has nothing to do with the company.

GNI now says its program will pay “up to” 20 percent monthly through a “No Risk Wager.” The company did not explain how it had categorically eliminated risk during a period in which it apparently did not have access to the capital it needed to operate and had suddenly changed the rules, leaving existing members holding the bag while apparently still advertising for new members to entrust their funds to the firm.

Some members, though, insisted they were standing by GNI because it always had “paid” and just hit a bump in the road.

Canadian regulators last week declared a collapsed program known as Gold Quest International (GQI) a “sham” and both a Ponzi and a pyramid scheme. Investors dumped at least $27 million into the program, according to the U.S. Securities and Exchange Commission.

GQI, which claimed Panamanian registration while operating from Las Vegas and saying it was immune to U.S. and Canadian law because it was affiliated with a “sovereign” Indian tribe, scammed thousands of investors, according to the SEC and the Alberta Securities Commission.

At least $3.15 million linked to GQI ended up in New Zealand, in one or more bank accounts tied to a company known as Topaz Group Ltd., according to court filings by Larry Cook, the court-appointed receiver in the SEC case. The majority of that money then was “immediately transferred from the Topaz Group business account to the account of Wendy Smurthwaite Davies, the wife of John Davies,” according to court filings.

John Davies was identified as the owner of Topaz Group.

Other GQI money made its way into E-Bullion accounts in California, according to court filings. The E-Bullion money is tied up in a fraud and murder investigation of E-Bullion owner James Fayed, accused of having his wife killed in a Greater Los Angeles parking garage.

Another “gold-themed” tie involves Brian David Anderson, a former Christian clergyman from Vancouver, British Columbia. Anderson recently was sentenced to 90 months in federal prison in the United States for operating a $4 million Ponzi scheme known as Frontier Assets.

Anderson also was linked to a mysterious scheme known as the “Alpha Project.”

U.S. and Canadian investigators identified Anderson as a pitchman for an international HYIP known as Flat Electronic Data Interchange (FEDI). FEDI’s operator, Abdul Tawala Ibn Ali Alishtari, also known as “Michael Mixon,” was convicted in September 2009 of financing terror and fleecing investors in the FEDI scheme.

Records in the Anderson case include references to E-Bullion.

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8 Responses to “GNI Members: Failed Program Was ‘Honest’ And ‘Real’; Critics Should Shut Up And Focus On Haiti Earthquake”

  1. “[W]hy not use your idle time for [the Haitian people?]” the GNI apologist asked on the ASA Monitor Ponzi board. “l doubt if you can do that ‘cos that is your true nature.”

    Simple and very common distraction technique. They usually say something along the lines of “There are many real scams out there, why don’t you fight those scams?”.

    Depending on how keen, how much they have invested or how much they are being paid, the ponzi supporter may then degenerate into calling the “naysayer(s)” workers of the [evil] government, profiting from some other scam, or being the minions of Satan, or some such nonsense.

    In earlier posts, the apologist suggested that GNI critics were suffering from “mental illness”

    Yep, just like that.

    and observed that, “I will be very grateful if GNI runs for 20 years as a pronzi (sic) !!!!”

    Perhaps the operator of this “pronzi” has used Little Bobbie’s “logarithm” to generate the “no risk wagers”.

    I notice on the last update they brought up the subject of “going private”. For those who haven’t followed many ponzi schemes, any mention of “going private” is usually one of the rings of the death bell.

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  2. America: the only country where we have homeless without shelter, children going to bed without eating, elderly going without needed meds, and mentally ill without treatment – yet we have a benefit for the people of Haiti on 12 TV stations.

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  3. Latest BS from GNI Admin:

    To the Loyal Members of GNI:

    It has been brought to my attention that many have become quite concerned of late because of the limited posting and corresponding in which I have engaged. To you, I apologize. I am taking every reasonable step to preserve the integrity of GNI, myself and my team as we face these obstacles which, frankly, are very difficult to overcome.

    I wish now to address a couple of the most common and forceful objections you have made against the GNI team. That of course is the “guarantee” that is made on our website with regards to sports arbitrage (trading). Arbitrage trading, is in of itself, foolproof. I stand by this! What is not foolproof is current, past and future market conditions. These include things such as the political environment, natural disasters, current events, global trade and recession, regulatory interference and so forth.

    Those who dislike us will never accept us for anything but a PONZI. Got news for them: We’re not a PONZI! They say that we will have an end some time soon…. I have very pragmatic news for everyone: At some point in time, there isn’t a business venture that will, at some point, end. Whether its this year, next year, one hundred years or a thousand, EVERYTHING has an ending. We just happen to feel ours is not yet there!

    Equally so, If I am anything, I am honest; so I have to acknowledge, our backs are against the wall. That which has hurt us the most is:

    The freezing of our assets by our bank’s (Yesilada) intermediary bank.

    This, more than anything, has put us into the situation we are currently struggling to overcome. Market conditions are something we have no control over, could never plan for and are well beyond our control. Indeed, but for this matter in of itself, we would be continuing status quo, and all would be happy.

    Many feel i have no compassion because I can’t respond to each and every member’s concerns or personal struggles. Rest assured, this situation we face is harder on me than all of you combined. While the project has been profitable, of late it has not! The personal assets I have put into GNI are substantial but that is not the point of this response.

    I see what the naysayers are posting. I have eyes and I care, not what the neggies say, but what our members say. Those who have supported us through good and bad times. Those who are not in profit, have a special place in my heart! Some may laugh at this, those who know me best will not. They know how important all members are to me, rich or poor, whatever part of the world they may reside.

    What is the point of this is? I want all of our members to recognize the level of effort put into the success (and yes, failure(s)) we have experienced over the last few years and that we are not quitting! We ARE struggling, but as much as we struggle, we ARE fighting for our customers, the employees, the principles and for the respect we feel we deserve.

    Thank you,
    Robert and your GNI Team

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  4. Oh, such a sad day. GNI is shutting down for good, but wait there is a gold nugget in the message.

    “The newGNI: GNI has the concept, the tools and the strategy somewhat perfected in the world of Sure-Bets. We will be making an announcement at 08:00 (GMT) on Friday, March 12 as it pertains to our future. We can give a hint: It will be a completely and totally PRIVATE program fashioned in a manner that is compliant in any and all world-wide jurisdictions with no limitations. This program has been in the planning stages for nine months and was to be run in parallel with GNI.”

    Really not so creative, but bold none the less. Same oh, same oh.

    Big Joe

    Message below
    ———————————————————————————-

    Greetings to the Most Loyal GNI Friends, Family & Associates and; Nemesis:

    As I have mentioned in the forum, I have spent the last few days in Northern Cyprus trying desperately to obtain those funds which belong to us – members and principals of Goldnuggetinvest.com.

    Besides myself, I have been privileged to be assisted by Counsel (one of our attorneys) to not just make a strong presence on behalf of some faceless arbitrage project; indeed, but to help me place a face on the thousands of loyal GNI Customers who have (rightfully or not) depended on our presence and weekly payments to:

    1. pay the rent or mortgage,
    2. pay doctor’s bills,
    3. pay for a family member’s schooling,
    4. retire in a manner that is consistent with the years of service provided to their employer,
    5. take a well-deserved vacation with someone special or
    6. have some peace of mind in these troublesome times.

    Despite our best efforts, and monumental efforts were made by all concerned, we could not get the directors, regulators or oversight administrators to relent. There were several tactics employed, a couple of which were most creative, but it was of no use. We thought we may have a foot in the door, only to have it cut off. What I can say is we tried damn it….we tried our hardest; but we could not overcome this hurdle.

    Without this income, we go in reverse. We have had suggestions, offers which included members giving us funds, members willing to delay the taking of payments, partial payments, the entire spectrum of suggestions; the reality is, however, these suggestions amount to a band-aid when in fact a tourniquet is called for.

    I must, for the sake of the sanity of myself and my family, the GNI Team Members, the Principals and our most trusted customers, shut down Goldnuggetinvest.com effective immediately and permanently. This decision will not be reversed.

    Refunds: Despite the ‘disingenuous’ overtones having made its way around the world of on-line investing, we will be refunding those members who are NOT in profit, an amount equal to 101.5% of their principal investment (this includes interest payments already received) rendering EVERY person who invested with us, more than whole as defined by Commonly Accepted Principles of Accounting. The instructions will be provided within the next 48-72 hours; will be straight-forward so this can be expedited.

    The newGNI: GNI has the concept, the tools and the strategy somewhat perfected in the world of Sure-Bets. We will be making an announcement at 08:00 (GMT) on Friday, March 12 as it pertains to our future. We can give a hint: It will be a completely and totally PRIVATE program fashioned in a manner that is compliant in any and all world-wide jurisdictions with no limitations. This program has been in the planning stages for nine months and was to be run in parallel with GNI. Nothing more will be said until Friday.

    Summary / Conclusion: I want to take a moment to thank all of you, our GNI family for all the kind words and support you have shown over the past several months. I never anticipated some of the hurdles which we had been forced to try to navigate. This program was my baby, you were my extended family. This program was a sense of pride, an attempt to help those of you who needed it the most. I have never, nor has my team, hid from reality; perhaps we were a bit over-confident, but our intentions were and always have been true.

    Our next chapter will be very bright, very private, but very bright. I hope to see all of you join in the journey.

    Thank you from my heart!

    With kind regards,
    Robert and the GNI Team

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  5. Who didn’t see those excuses coming?

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  6. Joe: 1. pay the rent or mortgage,
    2. pay doctor’s bills,
    3. pay for a family member’s schooling,
    4. retire in a manner that is consistent with the years of service provided to their employer,
    5. take a well-deserved vacation with someone special or
    6. have some peace of mind in these troublesome times.

    They forget to mention the clawbacks and attention from law enforcement when the “program” collapses or is raided by the Feds.

    The “private” feature is just a way to try to make it easier for the admins to run off when the inevitable happens. Or at least that’s been the case in every other online get rich scheme.

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  7. GNI gone? in 2010? I was looking for updates on “newGNI”? They are gone in 2013. Twice in 3 years. It must be a “repeat business”.

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