It is looking like Scandinavian Networking Group (SNG) is about to repeat the histories of a couple of so called trading programs that have failed to deliver. If you have been hiding under a rock for the past several years, you may have missed GINSystem and PIPS (aka PureInvestor) scams. If you are not familiar with these two, just do a search on the names + “scam” and you will find all the information you need.

Between GINS and PIPS, thousands of investors lost millions of dollars and may never recover a single penny. The mastermind behind GINS was tried and convicted in Singapore for illegally running a business without the proper licenses. He also had over 60 charges of fraud against him.

PIPS followed the same paths to failure. Brian Mardsen and his wife are both currently in a Malaysian jail awaiting trial for exactly the same type of charges as GINS. It does not look very promising for those that “invested” in this program as well.

We now come to SNG, in which the similarities to the two previous scams are striking. According to their website, they are currently not accepting any new members until further notice. (There are some disconcerting reasons why they are not accepting new members at the moment.) Should they open up again for new members, there are some facts you should consider before sending in any money.

1. SNG is registered in Panama and claim that they are licensed. GINS/PIPS said they were licensed as well. We know how that turned out.
2. Just like the previous two scams, they promise an unbelievable daily return on your investment that is compounded. (3% per day is unsustainable by the best of traders.) What exactly are they trading is anybody’s guess.
3. They claim to have the investors’ money in trading pools that are managed by experienced traders for about 170 days in each pool. Just like the two scams, no one knows if these traders actually exist. It is once again clouded in a veil of secrecy. There may be no trading at all.
4. To date, at least 4 pools should have matured, however, there is no evidence or proof that any investors have been paid a whole amount of the investment besides the small referral commissions. No one has gotten their principal back either.
5. When they stopped taking new members, they announced that trading had ceased as well. They had to consult with lawyers to clear up some legal issues regarding “know your customer” matters for the traders to continue. It has been almost 10 months since.
6. Fact #4 may have come as a convenience or scapegoat because of another private group called AceInvest that brought into SNG over 3000 members and millions of dollars as investment. SNG refused to payout to AceInvest and its members their returns which would have matured into the 100s of millions, if in fact SNG did any type of trading. A resolution was not reached and SNG would not even consider returning just the principal to AceInvest and its members calling the money “laundered”.
7. AceInvest promises to take legal action against SNG and suggests that they have evidence that SNG is a fraud and scam.
8. An ethical business should at least return the principal funds to AceInvest and its members and free itself from the so called “laundered” money. The burden of proof would be on AceInvest to deny any charges of money laundering; however, we have not seen any government jurisdictions make this allegation. If so, they will follow the money and where it leads ends up at SNG.

Tom Sornes is the man behind SNG. Some say he is known for being affiliated with several scams in the past. We here at OWI are not saying that SNG is a scam. We are presenting to you what we can gather. If they open up again for new members or you receive an invite, please visit www.sng-scam.info and make your decision. Pandora ’s Box may have been opened up by AceInvest. If they are legit, they can survive, but if it’s all one big fraud then they will be exposed.