Appearing on CFA Radio, Fernando Escobar, President of Paraguay’s National Securities Commission (CNV), has revealed Public Prosecutor’s are likely to file a criminal case against Pay Diamond.

The revelation was made following an investigation into Pay Diamond the regulator.

The CNV investigation concluded Pay Diamond was making a ‘a public offering of investment without being authorised by the regulatory body‘.

Or in other words Pay Diamond was offering unregistered securities to the public, which in Paraguay is a criminal offence.

In addition to Pay Diamond the CNV have also investigated Winandway and Prosperity Club.

The three schemes are very similar and have structures similar to those used by D9, as they make offers of investments with very high rates (gains), to the point of being almost “incredible” for anyone.

D9 refers to D9 Clube, a Brazilian Ponzi scheme Public Prosecutors began investigating back in May.

A few days ago authorities in Brazil raided several properties tied to D9 Clube. No arrests have been made yet with the investigation ongoing.

While investments are made for specific products, such as diamond trading (PayDiamond) or what is known as “bitcoin mining” (Winandway), basically all use the same scheme:

One must invest money And then recruit other investors, plus for each investor recruited the person gets a percentage of profits, a common feature in pyramid schemes, also called “Ponzi scheme”.

Fernando Escobar’s radio interview was accompanied by an August 7th CNV circular, reiterating that Pay Diamond is not registered to offer securities in Paraguay.

BehindMLM reviewed Pay Diamond in March, 2017 and concluded it was a 5% weekly ROI Ponzi scheme.