Kenneth Rijock

Kenneth Rijock

Monday, December 23, 2019

GRENADA SUSTAINABLE AQUACULTURE PROJECT DEVELOPER FAILED TO PAY PREMIUMS TO FUND INVESTOR GUARANTEE

Soren Dawody, center
For those who are wondering why foreign investors rushed to place their capital with Soren Dawody's GSA project, the plan came with a built-in guarantee that, after a certain period of time, their entire principal would be reimbursed to them by a third party. So why aren't they getting their money back ?

An insurance company, domiciled in the US Virgin Islands, executed a promise of payment. The investors have indicated that they relied upon this promise; it provided an assurance of restitution, came from an independent third party, and appeared to decrease risk to a minimal level. Advertised as "The 5-Year Guaranteed Investment Buyback (emphasis from GSA webpage) with third party assurance," it appears to insulate the investor from loss.

The problem: GSA's owner, Soren Dawody, failed to fund the necessary capital to the insurance company, and therefore there was no operating fund from which to generate sufficient cash flow to repay investors at the end of the trial period contemplated in the agreements. Frankly, we do not  know whether he ever intended to fulfill his contractual obligations to the investors, and to the insurance company.

Was the guaranteed buyback merely a pipe dream to lure in unwary investors ?  Two years after most investors paid in their capital, there has been no project action, and they have not been reimbursed. Fraud or genuine business failure ? You be the judge of what the true goal of  the GSA was.

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