Red Hat Capital UK is a Ponzi scheme which makes ridiculous claims to attract investors. The following review explores their claims and their shady marketing tactics.
Despite its name, Red Hat Capital UK is privately held by directors Michael Bold (CEO) and Craig Gabriel through Redhat Holdings Limited (COO, aka John Craig Gabriel).
Gabriel serves as the company’s Chief Marketing Officer, which was previously discussed here. Gabriel and Bold are also directors of Meredith Charles, an unlicensed introducer that advertises a variety of investments on its website, including Pardus.
Redhat Holdings Limited was established in 2016, but according to its most recent financial statements for October 2019 (£1,218 in net liabilities and £14 in gross assets), it is a tiny business.
RedHat Capital Plc is an established investor within the forex and commodities markets. We have significant industry experience and our ethos is to deliver above-average returns for our clients.
Red Hat Capital UK- Directors
Craig Gabriel is a marketing and business development professional with a finance and investment sector track record spanning more than a decade, I am a founding director & CEO of Redhat Capital plc.
Craig has a comprehensive awareness of what introducers and high-net-worth individuals are searching for in an investment product and what they anticipate from an investment provider. He has experience working at the director level in the broker industry. Being primarily focused on using this information to his advantage and thinking outside the box to create distinctive products that give alluring chances for high net worth and smart investors to increase their wealth while minimizing risk.
He is a dedicated and persistent person, his roles are centered on business development, and keeping a sharp focus on his investors has been crucial in assisting with international brand building and creating an engaging investor proposition for Redhat Capital plc.
Red Hat Capital UK- About The REDHAT CAPITAL BOND
In order to help blockchain start-up businesses achieve long-term organic growth, Red Hat Capital UK, a decentralized financial market institution, supports them in a variety of ways, including capital, technology, operations, marketing, and more. Our investment guiding principle is that vision generates revenue, and our goal is to expand alongside leading businesses and initiatives. Together, we will experience the blockchain revolutions and arrive at the wonderful shore we have been dreaming of.
Our fixed-income bond is listed on the Vienna Stock Exchange and offers a 12% return per annum over a 2-year term, with a registered debenture and backed by a security trustee. At Redhat Capital Plc, our aim is to raise €25M from the issue of a 2 Year Bond for investment within our proprietary forex and commodity trading strategy.
REDHAT BOND FEATURES
- Listed on the Vienna Stock Exchange.
- Minimum Investment €100,000.
- Fixed return at 12% per annum paid quarterly in arrears.
- Accepted currencies GBP | USD | EUR.
- Two Year Term
Red Hat Capital UK- Forex investment paying ~150% per year?
An “FCA Authorised Managed FX Account” is what Redhat Group says it offers, and it “rewards our clients with above average results by utilizing our advanced Redhat Trading Platform.” Past performance data on Redhat’s website claims that their investment delivered returns of 146% in 2019 and 153% in 2020.
On Red Hat Capital UK’s website, there is also a live page offering a “Loan Note” paying 24% over 24 months, although it is orphaned. The company is recently advertising its forex investment on Facebook.
Red Hat Capital UK- How safe is the investment?
Red Hat Capital UK asserts that its “built-in risk mitigation techniques” provide “excellent returns.”
The moment one takes a glance at its “Past Performance” table, this assertion begins to disintegrate.
Redhat claims that its forex trading strategy has been “developed over a 6-year period” and produced returns of 146% and 153% in 2019 and 2020.
If that’s the case, why aren’t hedge funds from all over the world knocking on their door?
They most likely lack basic financial math skills. An investment that made 7.69% in January, 3.41% in February, etc. would have made 272% throughout the course of the year. That’s if you maintain the investment from month to month and compound the gains, but why on earth would you do anything other when you’re generating an average of 12.1% per month?
So where does the figure of 146.15% come from? Is it called Breaching the Law?!!
Yet Red Hat Capital UK’s problem goes beyond a lack of comprehension of compound interest. Redhat would be breaching the law even if its returns were true.
Redhat’s Facebook adverts and website represent a financial promotion. Issuing financial promotions in the UK requires authorization from the Financial Conduct Authority. Redhat Group is not authorized by the FCA.
The only reason for Red Hat Capital UK to promote itself illegally instead of applying for FCA authorization is if its fantastical returns don’t exist.
Redhat Group is a Ponzi scheme because it lacks a secret formula that can generate returns of 100% or 200% annually, so any returns to investors will either be illusory (“numbers on a screen”) or, if the real money is paid into an investor’s account, funded by the investor’s own money or the money of others.
Now the main question is Should someone invest in REDHAT?!
Any investment that promises returns of more than 100% or 200% annually is actually very certain to lose money, with the exception of the people managing it. Ponzi schemes’ mathematical design ensures that the vast majority of investors if not all will lose money.
Do not invest unless you are prepared for total losses
Red Hat Capital UK- Trying to Hide Negative Press and Complaints with Illegal Tactics
What is DMCA?
Two International Intellectual Property Organization agreements from 1996 are implemented by the Digital Millennium Copyright Act (DMCA), which was passed into law in the United States in 1998. (WIPO). Making and distributing methods, technology, or services intended to get around restrictions on access to copyrighted content is prohibited (commonly known as digital rights management or DRM). It also makes the act of avoiding access control illegal, regardless of whether there is real copyright infringement. Moreover, the DMCA toughens the penalties for online copyright infringement.
A website or search engine that hosts or links to content that infringes on copyrights gets alerted by a DMCA takedown notice. During the past few years, Google has averaged receiving about 90,000 DMCA-related takedown requests each year. These takedown requests are regularly made by the music and film industries, and they are usually legal. Unfortunately, there are also groups and people who take advantage of the DMCA system.
Shady attorneys and online reputation management firms submitted over 100 erroneous DMCA requests to Google in an effort to remove evidence of prior wrongdoing from the internet.
This new “tactic” comprises the creation of phony news websites that claim ownership of the offending content that the real news website is hosting. Given the number of DMCA claims it receives every day, it is challenging for Google to sift out all of these fake requests.
Red Hat Capital UK- Competition and Alteration
In at least one court case, open-source software projects have used the DMCA to combat software conversion. involving the removal of copyright notices. Jonathan Bailey’s plagiarism Today alleged that the DMCA had eliminated the incentive for Kindle Direct Publishing, a division of Amazon, to create unique procedures for screening submitted books for plagiarism and copyright infringement before permitting their publishing. According to Bailey, Amazon “doesn’t do much to vet the books it publishes.” Plagiarism is not even mentioned in its KDP help files. This implies that almost anything may be published without too much trouble, regardless of the quality or, in this case, originality, of the material.
Red Hat Capital UK- How can someone justify a breach of trust or a scam and what it is exactly in Business Law
A failure to perform appropriately for someone who has trusted you with their money or other sensitive information: The business filed a lawsuit, claiming trust violation and industrial espionage. A person who violates a trust or mishandles property that has been given to them over time is said to be in breach of trust in legal contexts. When the trustee or another party violates the detailed regulations and extensive property definitions that regulate trusts, there has been a breach of trust. Beneficiaries may be entitled to monetary damages or an equitable remedy for trust violations. Breach of trust can also occur when a property owner permits a person to regularly use or borrow their property and that person steals or uses it improperly
Conclusion: Don’t Trust Red Hat Capital UK
The above points make it clear that Red Hat Capital UK is a Ponzi scheme.
A Ponzi scheme is an investment fraud in which money obtained from new investors is used to pay out old investors. Ponzi scheme operators frequently make the claim that they will invest your money and produce large returns with little to no risk.
Even in the best-case situation, operating a Ponzi scheme can result in serious jail time, astronomical fines, confiscation, and restitution. Charges for Ponzi schemes are frequently combined with additional allegations of financial crimes, including tax evasion, mail, wire, and securities fraud.
Ponzi schemes like Red Hat Capital UK are a type of investment fraud in which investors are promised artificially high rates of return with little or no risk.
Original investors and the perpetrators of the fraud are paid off by funds from later investors, but there is little or no actual business activity that produces revenue.
Hence Red Hat Capital UK is a case of corruption related to money laundering and Ponzi schemes, these people fool people to invest their money has hence makes people end up in losing all their money, so in the future, one needs to beware of investing in such schemes and these fraud companies should be charged with criminal charges for fooling people and should be charged with serious cases of money laundering.
Beware of Red Hat Capital UK.
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