Deutche group’s lavish corporate bond offer: real or fraud?
Moneylife Digital Team 09 May 2013

No, we are not talking about an offer from the German Bank. This is a new corporate bond scheme from Deutche Group, whose name resembles with Deutsche Bank AG, which promises lavish returns on its Facebook page. Savers are advised to ignore the scheme and stay away from the namesake

There is no end to sight to the number of dubious investment schemes these days, while regulators blissfully sleep. A ‘global’ firm known as Deutche Group PLC has made a sensational offer to the public: 24% annual return on its debentures and corporate bonds, in which interest will be paid every month to investors around the world (India included).
 

‘Deutche Group’ whose name resembles with ‘Deutsche Bank AG’, the well-known German banking and financial services company, has come up with the too-good-to-be-true scheme to lure gullible investors. Incidentally, Deutsche Bank has no relation whatsoever with the Deutche group.
 

In addition, the offer by Deutche Group not only sounds outright fishy but also reeks of fraud that evokes unpleasant memories of past Ponzi and multi-level marketing (MLM) schemes, which have robbed savers of their lifetime earnings.
 

More pertinently, it calls itself a “public limited company” when it actually is not. Its Facebook page (http://www.facebook.com/DeutcheGroup), emblazoned with the golden letters DG evoking similarities to the German Bank, says, “Our debentures are issued for our group holding company Deutche Group plc which is a public limited company authorized to issue debentures by the Companies House, UK.”
 


However, we did a search on the website of Companies House, UK, where all limited companies in England, Wales, Northern Ireland and Scotland are registered. We found out that Deutsche Group Ltd incorporated in 2006 is, in fact, not a public limited company as claimed but a private limited company.
 


What is even fishier is that, being “headquartered in London” the information on its website discloses only its US address instead and even misspelt United States as ‘United State’. The Facebook page mentions that Duetche Group’s American arm “Deutche Group Inc” will be going public on the NASDAQ stock exchange and is currently awaiting regulatory approvals from the Securities Exchange Commission (SEC). However, we tried to search for their filings on the SEC website but could not locate it.
 

The company claims itself as a multinational conglomerate, with presence in UK, US, Thailand and India, that deals with nearly everything, from investment banking to hospitality and even pharmaceuticals. It seeks to raise money from this dubious scheme to fund their so-called “expansion” of their business group.
 

Its Facebook page says, “This is a high yield, regular interest, generation debenture since we are raising funds for further expansion of our businesses in the field of travel, retail, pharmaceuticals, pharmacy, healthcare, IT, education , hospitality & hotels, e-commerce, merchant acquiring, merchant services, merchant/ retail/ investment/ corporate banking, financial services, IT security & forensics, private equity investments & venture capital.” That is pretty much a business one can conjure up.
 

However, when we checked their actual website (http://www.deutchegroup.com/index.html), we were surprised to find that it was bare and minimal, lacking in detail. Neither was the information pertaining to the company’s founders nor could we found the information relating to its debenture scheme. Its website stops short of describing the whole gamut of services and businesses mentioned above that is supposedly wants to expand in to. According to the company’s website, it is supposedly into travel and technology, retail, manufacturing, hospitality, equity investments. That is it. Even more mysterious is there is no further detail of its products being offered and how one can avail them.
 

There was no detail about its founders except that on its website it was found by a ‘renegade’ entrepreneur. It states, “Deutche group was founded by renegade entrepreneur 10 year ago and since then there is no looking back.”
 

Its Facebook page is administered by a person known as Abhishek Joshi. Though it is not known if he’s the actual founder of the group.
 

The mode of subscription is not mentioned on either the website or Facebook page, but it is safe to say that savers should stay away from the scheme. With the advent of social media, companies like these are taking advantage of the internet medium to lure gullible investors, where they can escape regulatory scrutiny to fool investors. An investment scheme like this, which is too-good-to-be-true, especially whose name resembles that of a leading global investment bank, should be avoided at all cost.

Comments
commen man
7 years ago
can anyone tell me that how is this case related with abhishek joshi ?
do anyone have an proof about it , abhishek joshi is a well know fraud associated with bank robbery , money laundering and triparena and so on. . pls update if anyone have any legal document regarding this man .
parackal o thomas
1 decade ago
PLease send copies of your report to the law enforcement authorities in the countries stated above.
hasmukh
1 decade ago
Good work by Moneylife. Public is cautioned well in advance before they hear or know of such fraudulent schemes and are saved from loosing their hard earned money.
Madhur Kotharay
1 decade ago
'Deutsche' is spelt with an 'S'.

This company's name is spelt as 'Deutche' in their offer document.

So MoneyLife probably searched the wrong company in the UK registers. Most likely, this is a completely fraudulent company.
nagesh kini
Replied to Madhur Kotharay comment 1 decade ago
A name closely resembling a well known one can be deceptive to lure the gullible. Such fraudulent companies should be curbed by the authorities before people loose money.
Vinay
1 decade ago
A group of "douches". That's how it's pronounced :P
nagesh kini
1 decade ago
This ought to be brought to the notice of SEBI and RBI and any possibly to other authority that can stop deceptive and misleading offers and ads. The name closely resembling an international German bank offering 24% returns is very likely to attract the gullible and greedy.
nagesh kini
1 decade ago
This ought to be brought to the notice of SEBI and RBI and any possibly to other authority that can stop deceptive and misleading offers and ads. The name closely resembling an international German bank offering 24% returns is very likely to attract the gullible and greedy.
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