Scam SummaryNilesh Nair an undischarged Bankrupt employee of a small town security camera business and middleman exporter/salesman of agricultural commodities is currently posing as a Director of a $multimillion/billion global corporation, in a bid to dupe a group of gullible investors out of Bitcoin.
The scams fronted on this forum by Bohan Huang (true-asset), Director of TrueHD another local security camera business in the same area (Rydalmere NSW) by the claim that Mr Nair’s business GES HK, along with three other shell companies, are backing the price of a crypto currency with the commodity Urea, thus setting a predetermined price indicator.
-add solicitors advice if legal to be ceo/director of a company in HK whilst undischarged from Bankruptcy in another jurisdiction.
IntroI did not start my due diligence on this scam as a diligent investor, but because the underlying idea is so laughable I felt sorry for gullible investors and realized, the positive market reaction this scam was receiving could have a serious financial impact.
When I first became aware of this two weeks ago, I only imagined it would take a day to convince people that this was indeed a scam, as it was painstakingly obvious a) you can’t back a cryptocurrency with an asset as described and b) The notion 4 large business not involved in producing Urea have agreed to buy minimum of $3.5m lots of Urea for their customers, on an ongoing basis, in exchange for worthless experimental digital tokens is insane!
At the time of writing GES claims to have agreed exchange of $50million worth of Urea throughout the course of the coming year in exchange for Urocoins!
The market participants have shown mind blowing levels of denial, inept; investment skills and understanding of basic market and business principles.The level of denial has only made me more interested, several members here including myself have presented them with a flurry of basic due diligence that undermines this scheme, yet has been brushed off as fud!
As I described in a twitter post it’s like watching an entire forum of people simultaneously fall for a Nigerian 419 scam. I’m now under the impression that market participants would still be in denial given a signed confession so take this post as a bullish indicator!
I’ve been patronized, accused of being a troll and paid fudster, yet have nothing to gain from this except the increased likely-hood of being stabbed by Australian Criminals.
I think it’s ethically wrong to turn a blind eye to scams, picking on the mentally incapable and vulnerable people around us. How would you like it if it was your idiot friend, sibling or child being conned?
During my time looking into this I’ve heard of people “investing” up to 50 Bitcoins as well as starting community pools to get their own shipment of Urea! Even true-asset has attempted to start a community pool on one of Max Keisers crowd funding platforms, whilst trying to leverage Keiser for legitimacy!
Nearly every single point made in the Uro proposal is recognizable nonsense or can be dis proven with credible evidence.
Main Conspirators The main conspirators in this scam are
Nilesh Nair an un-discharged bankrupt in Australia since September of last year and CEO of Green Earth Systems Limited incorporated in Hong Kong in late 2011. He previously ran a business that involved personal and psychic investigations as well as CCTV equipment, this business is in the late stage of insolvency proceedings.
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http://www.docdroid.net/f94l/bankruptcy-search-1.pdf.html (bankruptcy search on Nilesh shows bankruptcy filing on 26th September 2013)
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https://insolvencynotices.asic.gov.au/browsesearch-notices/notice-details/Impact-Investigations-and-Security-Pty-Ltd-083449576/99c2627a-3fde-4e77-a3ad-8ba9cf6e577c?appointment=All¬icepurpose=All&acn=083449576¬icestate=All&archvd=0 (winding up notice, indicating late stages of insolvency proceedings against impact security investigations Pty ltc)
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https://web.archive.org/web/20130524130454/http://impactinvestigations.com.au/-
http://www.picpaste.com/hkcompanyreg-McxRuErl.png incorporation details for GES HK
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http://www.scribd.com/doc/235214148/PS300016750373-01-Annual-Financials-2013-Amended shows their head office in Hong Kong is in fact the virtual office of the company they used for formation, also shows Nilesh is sole director and shareholder of the company.
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https://www.youtube.com/watch?v=0oDsxU2hlx0 for the lulz recently made video Nilesh Nair introducing Uro and below talking about values!
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https://www.youtube.com/watch?v=EtWRsprcf3oShankari Nair, The Director of Green Earth Systems PTY LTD Australia incorporated in 2008 and Nilesh wife.
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http://www.scribd.com/doc/234257360/2-d-3330353534313239313 (incorporation document showing date of filing)
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http://www.scribd.com/doc/234257362/373735303733393837343 (document showing Shankari Nair as full shareholder)
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https://web.archive.org/web/20080724172404/http://www.greenearthsystems.com.au/contact.html (webcache showing evolution of CCTV shop since incorporation in 2008, completely contradictory to wild claims such as donating $3.4m per year to rural farmers in 2003 shown on todays site!)
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https://insolvencynotices.asic.gov.au/browsesearch-notices/notice-details/GREEN-EARTH-SYSTEMS-PTY-LTD-132561132/e210ae84-3d23-4448-a2d0-6c2e218ee440 Insolvency notice posted two months after Nilesh Bankruptcy
Bohan Huang public voice of the scam through Bitcointalk, IRC #uro and the Twitter Account of @UroFoundation and more than likely @GESystemsgroup, he goes by the pseudonym True-asset, and claims to be currency development officer of the “Uro Foundation” (in quote marks because a foundation is the name of a legal vehicle/entity and although in vogue, you can’t just start calling yourself one if you’re not!).
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http://cdn.imghack.se/images/ac000bf99d3289cf0de98fdd4c25f26a.jpg a screenshot from Bohan on webcam and at a tradefair! spot the difference!
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http://videobam.com/viFLA 30 minute its not a scam rant/not here to teach you about markets!
Their are several other people playing smaller roles in this scheme we’ll cover as we go.
Proposal SummaryThis idea was first proposed on May 8th 2014 by true-asset
https://bitcointalk.org/index.php?topic=600639.0To setup a Distributed Urea Exchange for the efficient international trade of Urea backed by digital tokens stabilized to the value of Urea.
The Uro "Foundation" claims to have an agreement with several international Urea trading partners to back each unit of Uro with 1 metric tonne of Urea. This agreement is in the form of the Uro Protocol, which was signed by all 4 board members of the "Uro Foundation" on 09/06/2014. The Uro Protocol and the accompanying signed documents can be found on the official Uro Foundation website.
Flaws of pegging a virtual currency to a commodity Given that the fatal flaws in pegging a virtual currency to a commodity haven’t been relevant to the discussion (since it’s an easily provable scam) I haven’t touched on them yet but will try and handle them briefly here.
Although this subjects been explained by people far more intelligent then me over the past few years on Bitcointalk, I can’t be bothered to search through the sea of stupidity this forums become to find the posts! I’ll have a stab at a few obvious reasons that stand out in my mind. However if you’d like to search for more acedemic reasoning i’d suggest the original Mastercoin threads or try Daniel Krawisz insightful post here
http://nakamotoinstitute.org/mempool/mastercoin-is-a-nightmare-of-insanity/If a market participant sees the level of sales is exceeding the depth and velocity of the market to the extent they can clearly predict their investments going to drop they wont bother investing in the first place causing an avalanche effect with those at the top of the market fearful of being dumped on.
A fixed supply of Uro coins on the free market means there’s no reason why a purchaser could ever acquire enough coins to meet a minimum order, on Bittrex the most liquid exchange there’s only 10.5 Bitcoins worth for sale at the time of writing this, even given the exceptionally cheap Urea price they’re claiming, this is no where near sufficient to complete a minimum order.
The closer you get to the spot price of Urea the more the market will know they are going to get dumped on, again creating an avalanche effect on the price., even if the price held at 1% below the spot price it would completely undermine the cost savings of the scheme.
Credibility of GES -site is registered to ex-employee
-An insolvency notice has been filed against them
-unnecessary and flawed business model, people buy direct from producers through alibaba etc and use shipping brokers.
-If business was used then they couldn't charge much as organizers of orders above cost of purchase of urea + shipping.
-used a customer bank comfort letter to validate their business, but claimed it was from their HSBC bank reflecting their funds (despite being on headed paper!!!)
-Terms of contract show they need no capital or skill set to run this business as slow delivery times after customers payment has cleared.
-registration dates contridict nearly all news on their site (i.e. $3.4m to rural farmers years before incorporation)
-No news reported on their site has ever made it to press (only news outside their site in their history is a science blog thanking them for an image they pulled off their site 2 years ago!)
-phone numbers don’t work on their website
-site contact us full of fake numbers and addresses
-have repeatedly said to contact hong kong, yet hong kong number and address don’t exist (hong kong address listed on their site is that of their formations company.
-Head office listed on their site for Australia with find us map is a virtual office unlinked to them, one tel no disconnect the other goes through to CCTV shop in rydelmere.
-a non existent company ISC (no one knows what this stands for) reformed as GES in 1996! when probed about discrepancies between incorporation dates and news on their site!
-add voice recodings
Credibility of URO foundation-cannot find any supporting evidence this is a registered foundation.
-hugely flawed plan
-true-asset works as Director of Truehd a security company in the old business premises of Nilesh now insolvent Impact Security Investigations.
-Facts about Urea price discrepancies and fluctuations are untrue, urea has a spot price even on recent 1m ton IPL order price break was only around 8% under spot price.
-Facts about cost of using banking systems are untrue.
