We bring to you detailed facts in this Reviews of the Nanban Foundation Scam to understand why it has made a piece of trending news.
Several scams get exposed worldwide daily, but the Nanban scam was also highlighted in Hindenburg Research titled – With ‘Friends’ Like These… You may have known about the fall of the Adani group and how it disturbed the political atmosphere in India! Will the history repeat itself in the United States? Let’s check Nanban Foundation Scam.
About Nanban Foundation Scam:
The Securities and Exchange Commission (SEC) released a press note on 16th/October/2023 that it has obtained a temporary restraining order to freeze the assets of Nanban Ventures LLC. SEC has also obtained orders for emergency relief to stop a Ponzi scheme targeting the Indian American community.
SEC reported that Nanban Foundation had lured Indian investors under the name of proprietary – GK Strategy. One of the founders and CEO of Nanban Ventures LLC is Gopala Krishnan, popularly known as GK. Manivannan Shanmugam and Sakthivel Palani Gounder are co-founders.
Nanban Foundation Reviews of entities and US$ involved:
SEC reported that since 2021, Nanban Foundation was able to attract an investment of approximately $129.7 to $130 million from 350+ investors, which includes direct investments of $39 million by 10 investors in three other ventures controlled by Nanban, including GSM Eternal LLC, Himalayan Fintech LLC, and Centum Fintech LLC.
Gopala Krishnan, who claimed to have developed the GK Strategy, had used the brand name of Nanban to give the impression that the GK scheme outperforms the S&P 500 Index by generating 100%+ returns on investments. Thus, Gopala Krishnan has overstated the profitability several times to attract hundreds of customers and gained their confidence by showcasing $17.8 million in fake profits.
Nanban Foundation Reviews of Friends like these:
Gopala Krishnan, in his YouTube videos, showed how GK’s strategy is getting 100%+ returns better than the S&P 500 index. SEC had taken note of his marketing and promotional videos. Initial analyses show that with a few exceptions, the GK’s strategy was lower than the performance of the S&P 500 index.
Eric Werner, Director of the SEC’s Fort Worth Regional Office, stated that Nanban (which means – male friends in Tamil language) is the farthest thing Gopala Krishnan used to expand in the market. Several sources speculated that GK’s strategy is a high-end scam as it may be paying stakeholders (or) showcasing profits from new customer’s investments.
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Nanban Foundation Scam locking investor’s money:
It is anticipated that the $17.8 million profits and 100%+ returns on investments shown by Nanban were also fake and a part of the Nanban scam. Hence, old customers were shown a fake profit, which could be a Ponzi scheme (a business model where old customers are paid from new customers’ invested money).
As the assets of Nanban are frozen before the end of the gestation period, the customer’s investments are locked which means customers won’t be able to withdraw their money. Therefore, it was regarded as another clue for Nanban Foundation Scam as payments were not going out to the customers.
Social media links:
Conclusion:
Hindenburg published 106-page research report in January/2023 about how world’s 3rd richest man – Adani, had his companies’ stock price inflated and created several dummy companies in different countries. After Hindenburg report was published, stock prices of Adani Group fell to a record low, and Adani’s rank slipped from 3rd richest to 56th(±4) richest! Hence, the Nanban scam published by Hindenburg is given high importance.
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