Author Avatar

editor

0

Share post:

The Financial Sector Conduct Authority of South Africa has issued a pyramid scheme fraud notice to the Prosperity Grid.

“Several concerns received from the public” spurred the Prosperity Grid probe.

Following a preliminary inquiry, the FSCA ruled that The Prosperity Grid “appears to be a pyramid scheme, the operation of which is prohibited.”

The FSCA is, unfortunately, a financial regulator.

We have ended our inquiry since pyramid schemes are not covered by the FSCA, but we nevertheless advise the public to be cautious.

In the case of MLM, this implies they’d only investigate if there was evidence of securities fraud.

Even yet, the FSCA has a history of dragging its feet when it comes to apparent securities fraud.

In any case, the FSCA has thankfully taken action in this case, even if it’s only shifting the buck.

The FSCA has forwarded the complaint to other relevant regulators and authorities in South Africa, who will evaluate it and, if required, take further action.

In August 2021, BehindMLM reviewed The Prosperity Grid. We discovered a simple giving program that relied on pyramid recruiting to stay afloat.

The Prosperity Grid was failing last month, as we reported. This was due to a reduction in admission fees from $500 to just $126.

The Prosperity Grid’s website receives very little traffic. This indicates that the scam has most likely failed, leading to complaints to the FSCA.

The Prosperity Grid is managed by South Africans and largely targeted at South Africans, as we said in our evaluation.

Decentra Review part 2 - Is a Fraud
USFIA Review - Is a Fraud

Leave a Comment

Your email address will not be published. Required fields are marked *