Stuff
Officials say promises of huge returns should be treated with “extreme caution.”
Investors are being warned not to trade with a company promising huge returns and holding a meeting in South Auckland this weekend.
Validus promises investors returns of up to 300%, allegedly generated by professional traders trading in crypto, forex and other financial products using pooled funds.
The Financial Markets Authority (FMA) said it was concerned Validus was providing financial services in New Zealand without the required registration.
“We strongly recommend that investors do not trade or invest with entities that are not registered or licenced in New Zealand.”
READ MORE:
* Kiwibank the last holdout on poor-value credit card repayment insurance
* Know the risks of unregulated investments
* ANZ ‘should have disclosed’ sale of house to Hisco’s wife
The FMA first warned would-be investors about Validus in September 2022, after a series of seminars were held to promote its products and services.
RNZ
New Zealanders have lost $23 million to scams in the last 18 months, with the majority of victims staying silent about being duped. (Video first published October 2020).
It reissued that warning on Friday, ahead of a planned meeting in Mangere on Saturday.
The Australian Securities and Investments Commission has also warned investors to be wary, saying the returns promised by Validus were unrealistic and should be treated with “extreme caution.”
“Validus accepts crypto-assets as payment. Consumers do not have the same protections as they would if they paid by other means, such as transferring funds to a bank account,” it said.
“Validus encourages investors to recruit new investors into the scheme. This is a classic sign of a pyramid scheme.”
Credit: Source link
