Lesotho: TVI Express is an illegal pyramid scheme
Lesotho is
a landlocked country and enclave, surrounded by the Republic of South Africa.
It is just over 30,000 km2 (11,583 sq mi) in size with a population of approximately 2,067,000.
Or to put it another way, Lesotho is probably too small to rate on most people’s radars (myself included). Admittedly I’d never even heard of the country today, when the Central Bank of Lesotho outlawed TVI Express labelling it a ‘pyramid scheme‘.
Asserting that TVI Express is ‘operating in Lesotho in violation of the law’, the Central Bank assessed TVI against the country’s ‘Financial Institutions Act’ and found that
Its business operations place substantial emphasis on recruitment of participants to it.
In this respect, the scheme offers lucrative incentives to the participants, calculated primarily on the basis of the number of participants or members that have been recruited into it.
It is evident that these recruitment-based incentives serve as a bait to attract potential participants into joining the scheme, with the prospect of making easy money by recruiting others.
In the whole, selling of purported products or services is a small component of the business model in the scheme and therefore designed to defraud members of the public.
With no product and a compensation plan that only pays people when they recruit someone to TVI Express, how anyone could come to any other conclusion is beyond me. So kudos to the Central Bank for investigating and coming to the only logical conclusion possible.
TVI Express being declared illegal in Lesotho continues TVI Express’ problems in Africa. Currently the scheme is banned in South Africa and has been facing regulatory action in Namibia for some months now.
Despite putting up a strong defense and unity upon first hearing of the bans, TVI Express appears now to have all but abandoned its African members. Instead, the company continues to pursuit new markets in countries it hasn’t been banned in yet.
Take for example the recent TVI Express launch in the Philippines.
How long will that last? Not long if Africa is anything to go by.
It’d be great to see regulatory bodies for once take a proactive stance on the various pyramid schemes going around. In the case of the Philipines, it appears to be the ‘Bangko Sentral ng Pilipinas‘, otherwise known as the Central Bank of the Philipines.
Wake up Philipines! One of the largest pyramid schemes in modern times just set up show right under your noses and you appear to be asleep at the wheel!
Philippines have an active chapter of DSA but so far they haven’t done anything about TVI Express.
Namibian News repeats BoN warning: it’s a pyramid scheme. (It also seem to have recycled some of my explanations, as some of that is identical to my blog posts)
http://allafrica.com/stories/201109010473.html
Lesotho government website also put up an article on it:
http://www.gov.ls/articles/2011/central_bank_warns_against_tvi.php
Just got comments about TVI Express from plenty of people in Philippines. Some are hesitant, some are cult-entranced, and some are trying to dispel TVI Express falsehoods.
According to one of my commenters, TVI Express members are claiming they will be “legalized” by Filipino government in October and formally taxed. WTF?! I mean, it’s not taxed now?
http://kschang.hubpages.com/hub/The-Real-Truth-About-TVI-Express (scroll to the end)
Got another comment… Apparently TVI Express is telling people NOT in South Africa that they will launch South Africa office, in Pretoria of all places, on October 21, 2011.
http://kschang.hubpages.com/hub/TVI-Express-is-an-international-scam (scroll to the end)
You think we should let South African police know? 🙂
Indonesia puts nail in coffin of TVI Express there. It was finally revealed that Tarun Trikha is 49% stake holder in PT TVI Express Indonesia, and this investment is now declared ILLEGAL, and because the company itself already lost the SIUP (business license) the company no longer legally exists in Indonesia.
http://www.suarakarya-online.com/news.html?id=287255 (use translator, it’s in Indonesian)
Of course he is lol. Who else is it going to be? Nobody else has as much financial stake in the ongoing success as Trikha himself.
Last week the Central Bank of Lesotho once again put out a warning to TVI Express and its members.
Warnings are all very well, but you kind of have to wonder if the authorities in Lesotho are ever going to do anything more about TVI.
Clearly if the bank has put out another warning the first wasn’t heeded.
Same thing in South Africa. People there were cheering for the arrestees even as as police hauled them off to jail. I still have various members claiming South Africa branch of TVI Express will be open soon. 😀
Ah, a bit of history lesson, and no wonder Lesotho was ahead of the curve in shutting down TVI Express… they got hit by their own called MKM Burial Society in 2008 that was supposedly about prepaid burial plans, but instead, morphed into insurance and HYIP.
From IMF Ponzi study…
http://www.imf.org/external/pubs/ft/wp/2009/wp0995.pdf
At one time, the MKM sucked in enough money to account for 4% (up to 8% according to some sources) of Lesotho’s GDP.
Not quite as bad as Albania’s Ponzi crisis, known as “Lottery Uprising”, which may have hit 60-70% of the GDP, but impressive nonetheless.