The collapse of the SVG Classic Car Fund debacle continues
The Bernie Madoff crisis shook the financial world when a reputable New York financier was exposed as a scammer. His close-knit team essentially made up valuations for their investments for years, which attracted pension funds and worldwide investors eager to join in the month-to-month profits.
When a fund manager collaborates with the fund administrator to establish monthly values of a fund, or NAV (net asset value), investors utilise these valuations to monitor their investment performance and to purchase or sell additional shares. Continual rises in the NAV price attract investors, and as a result of their consistent success, funds can grow to enormous sizes. As Charles Ponzi demonstrated, however, a smoke-and-mirrors technique may be used to entice and then deceive several investors, who find their money suddenly gone when the Ponzi scheme is discovered.
Does SVG contain any potential Ponzi schemes? Consider Fortuna Administration Limited, which is already entangled in the crisis surrounding the demise of St. Vincent and Grenadines-based The Classic Car Fund (“TCCF“), and its refusal to hand over its valuation documents. This fund was drawing investors as recently as the beginning of 2019, but by the beginning of 2021, the investment manager, Filippo Pignatti, liquidated the fund, and investors stand to lose the majority of their capital. Intel Suisse is conducting an investigation on behalf of TCCF…
