The Prosperity Grid pyramid scheme warning from South Africa
The Prosperity Grid has received a pyramid scheme fraud warning from South Africa’s Financial Sector Conduct Authority.
The Prosperity Grid investigation was prompted by “several complaints received from the public”.
The FSCA advises that, following a preliminary investigation, it concluded The Prosperity Grid “appears to be a pyramid scheme, which operation is illegal”.
Unfortunately the FSCA are a financial regulator.
As pyramid schemes do not fall within the jurisdiction of the FSCA we have closed our investigation but warn the public to take care and exercise caution.
With respect to MLM, this means they’d only pursue the matter if securities fraud was present.
Even then though, the FSCA has a reputation for dragging its feet in the face of blatant securities fraud.
In any event thankfully this is one instance the FSCA have done something – even if it’s just passing the buck.
The FSCA has referred the matter to other relevant regulators and authorities in South Africa, for them to consider and take further action if necessary.
BehindMLM reviewed The Prosperity Grid in August 2021. We found a simple gifting scheme, requiring pyramid recruitment to keep it going.
Last month we noted The Prosperity Grid was collapsing. This was based on the slashing of entry costs from $500 to just $126.
Traffic to The Prosperity Grid’s website is negligible. This means the scheme has probably collapsed – and that likely finally prompted complaints to the FSCA.
As noted in our review, The Prosperity Grid is run by South Africans and primarily pitched to South African residents.