Pyramid scheme
National Consumer Commission to ‘move fast’ in probing grocery pyramid scheme
The National Prosecuting Authority has confirmed that there have been criminal prosecutions in relation to the scheme.
Consumers have been warned to look out for a rise in Ponzi and pyramid schemes as South Africa faces worsening economic conditions.
There are concerns that Crowd1's business model mirrors that of a pyramid scheme, where money has to be sent up the chain in order to sustain it.
Crowd1 has been touted as the next generation marketing network but there are warnings that it’s nothing more than a get rich quick scheme that is bound to leave many in debt and tears.
Zhang Tianming and nine other staff from his company, Shenzhen-based Shan Xin Hui, were found guilty in a hearing of running a multi-level marketing company.
It is alleged between 2009 and 2014 the suspects used bogus investment entities to recruit members of the public into joining their elaborate investment schemes.
Wouter Fourie from the Financial Planning Institute says investors might feel the brunt of the pyramid scheme in the next 2-3 months. He chats to Bruce Whitfield about his prediction.
The commission said a report into nine suspected pyramid schemes will be released on Monday.
The preliminary investigations were launched in September after the commission received a tip-off from Sars.
The National Consumer Council is probing 9 questionable investment schemes following complaints from SARS.
CARTOON: Govt. Pyramid Scheme
Former Fidentia boss J Arthur Brown has welcomed his guilty verdict.
The Reserve Bank said Gauteng and KwaZulu-Natal are the hardest hit provinces
The Reserve Bank says a lot of money is lost to scammers through pyramid schemes.