The Financial Sector Conduct Authority of South Africa has issued a pyramid scheme fraud notice for The Prosperity Grid.
The Prosperity Grid probe was brought on by “several public concerns.”
According to the FSCA, The Prosperity Grid “appears to be a pyramid scheme, its operation is prohibited,” after conducting a preliminary inquiry.
Sadly, the FSCA regulates the banking industry.
We have concluded our inquiry but urge the public to use caution and care as pyramid schemes are not covered under the FSCA’s purview.
This implies that they would only pursue the issue of MLM if there was securities fraud.
Even then, though, the FSCA is known for taking its time responding to obvious securities fraud.
In any case, it’s a relief that the FSCA took action in this case, even if it was only passing the buck.
For them to examine the situation and take further action if needed, the FSCA has forwarded it to other pertinent regulators and authorities in South Africa.
In August 2021, BehindMLM evaluated The Prosperity Grid. We discovered a straightforward giving program that needed pyramid recruiting to continue.
The collapse of The Prosperity Grid was noticed last month. Based on the reduction of admission fees from $500 to merely $126, this was said.
The Prosperity Grid’s website receives very little traffic. This indicates that the plan has likely fallen apart, which is what ultimately led to complaints to the FSCA.
The Prosperity Grid is maintained by South Africans and largely targeted toward South African citizens, as mentioned in our evaluation.