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.
🤖 Quick Answer
What warning did South Africa's Financial Sector Conduct Authority issue regarding The Prosperity Grid?The FSCA issued a pyramid scheme fraud warning against The Prosperity Grid following multiple public complaints. After preliminary investigation, authorities concluded the operation appeared to be an illegal pyramid scheme, though jurisdictional limitations prevented further regulatory action.
Why did the FSCA close its investigation into The Prosperity Grid?
The FSCA closed its investigation because pyramid schemes fall outside its regulatory jurisdiction. The authority only pursues MLM-related matters when securities fraud is demonstrably present, a threshold not met in this preliminary assessment.
What public advisory did authorities issue concerning The Prosperity Grid?
The FSCA advised the public to exercise caution regarding The Prosperity Grid operations. Despite concluding the scheme appeared illegal, regulatory constraints prevented formal enforcement action or continued investigation.
🔗 Related Articles
- Axiome Review: AXM token Dubai Ponzi scheme
- iGenius fraud charges filed against Gamechangers Polska
- Des Alpes securities fraud warning from Canada (QC)
- DexNet Review: Dubai MLM crypto securities fraud
- Sosana Review: Crypto manipulation securities fraud