Uinvest is an exciting online investing program based out of the Ukraine. It has quickly been dismissed simply as a HYIP (High Yield Investment Product) which often has a negative connotation as a risky investment product with quick yields for those who enter early, similar to a pyramid scheme or ponzi scheme. Yet, Uinvest has been able to bypass the usual issues present in a HYIP and quickly build for itself some credibility in online alternative investments.
This post DOES NOT accuse Uinvest of being a scam. I was previously threatened by Uinvest’s legal department that this post was an instance of defamation. This post is my simple opinion and is not damaging
They are incorporated in both Kiev, Ukraine and Beverly Hills, California. However with returns that remain strangely consistent at 6-7% throughout a particular investment, Uinvest mirrors a Ponzi Schemes in nature. I was first drawn to and skeptical of Uinvest when I was doing some research on HYIP’s. I was reading a blog that wrote a favorable review of this potential HYIP company, offering little evidence to back up such claims except for exceptional returns and an imaginative hope that it was legitimate; not a Ponzi Scheme.
I responded to their post with skepticism when I noticed that when Uinvest describes the businesses participants invest in, it listed the number of employees. A hotel investment with several stories, a swimming pool, restaurant, conference room and work out facility that had only 12 employees drew a red flag. One that has yet to be answered.
The entire premise behind Uinvest is that they act as a holding party or intermediary for investors who put their money into particular businesses in Ukraine.
The list is diversified from a grain elevator to a group of gas stations. The listings are appealing with well put together photos and videos. The language is inviting and talks of the countless growth possibilities in Ukraine. They also remind their users of how much money they can make! This sounds like the perfect alternative investment.
When buying shares of businesses through Uinvest, prices appear arbitrary. There is no evidence to suggest they have a relation to the market share or number of shares available, nor to the value of the business. What is worse is these businesses have no real name nor is a physical location or management description given. This is an immediate red flag. How can an investor do the homework if they do not know the location or even the name of the business? Red flags again.
What is worse, Uinvest returns monthly shares for investors that maintain a consistency of 6-7% return on the price per share regardless of the business or the climate of the economy. Does it make sense a brick factory and pipe factory yield the exact same percentage as a hotel or a recording company during the same quarter? This is known as cyclical risk.
Moreover, the period of time to break even from the monthly earnings per share is consistent for each business again regardless of economic climate or industry. More red flags. What about the money you invest? Last year when I opened an account with Uinvest to investigate for myself I could only use programs such as Liberty Reserve to load money. I had to request special permission by email to use Paypal. I wonder why? Never mind wire transfers were not an option. Further, Uinvest now claims your money waiting to be invested is backed by gold. Really?
Can they prove that? Any independent credible sources that can verify that? Your money becomes even less liquid now and is determined by another price. More and more red flags. Speaking of credibility, they finally attempted to address that question earlier this year. They began uploading impressive photographs of workers in an office building coupled with wonderful captions of their dedication and transparency. They followed up by membership in Beverly Hills Chamber of Commerce.
The problem is that just about anyone can join this group. Their perk for joining is discounts on many local services of which include banking, transportation, shipping etc. Furthermore, they have incorporated themselves in the state of California. This may have validated their credibility to many investors, perhaps even without hunting down the link above. The problem is that just about anyone can incorporate themselves and there are plenty of online services that will do all of the work for you with just a small fee. Take a look at the role of Vitaliy L. Danilenko in the company. He is the only director and officer of the Uinvest board. Sound fishy? It should.
What type of business are they registered as? Investment. They can do just about anything with that! The bottom line is this, Uinvest is extremely worrisome as an alternative investment and mirrors a simple ponzi scheme or typical HYIP. They differ in their ability to paint a picture of a professional website, offering wonderful options to the investor. There are no requirements for tax information by investors and ease of use makes targeting a young or inexperienced investor simple. Those turned off by the paperwork, taxes, and work involved in legitimate investments in real companies are prey.
If you are still interested in Uinvest it is likely you will make money and it is an option as an alternative investment. But for how long is anyone’s answer. At any moment the curtains could open to find a scam that has been building for years. All of the holes in the business are present and clearly visible. Will you deny them like so many others?