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Screenshot of a breaking news alert e-mail from Q2 2017
Russia’s Centre for Regulation in OTC Financial Instruments and Technologies (CRFIN) today added another entry to its list of fraudulent investment companies: Leveron (https://leveron.org/), a brand of Worldwide Finance Group Ltd.
CRFIN’s attention was drawn to the online project after numerous complaints by investors.
The company, which offers a range of investment services to clients who speak Russian, Ukrainian or/and English, lures potential clients with promises of high returns, while failing to provide any credible information on licenses or relevant regulation.
According to CRFIN, the business model of Leveron Worldwide Finance Group Ltd has the following suspicious characteristics:
- Promises of artificially high and guaranteed returns: Leveron says return on investment can reach 6-12% per month.
- Offering of substantial bonuses for attracting new clients: the company promises each client a share of 9-15% of the profit of every new investor attracted. A typical promise of “no-risk income” is present here.
- Absence of objective guarantees that funds can be withdrawn: the company is obviously paying its existing clients with the money attracted from the new clients;
- Signs of misleading about business status: there is no information about licenses or relevant registrations with regulators, but the company is using terminology like “deposits” and “investment”.
After the addition of Leveron, CRFIN’s “Black list” has 42 members. Many of them, like Forex MMCIS and (more recently) Alfareserve and InTrade24, have already stopped operations. Others, however, continue trying to lure clients.
CRFIN, which is Russia’s Forex self-regulatory organization, advises investors to be vigilant and to stay away from companies that have the characteristics of financial pyramids.
The full “Black List” of fraudulent investment companies in Russia can be found here.