Streaming issues? Report here
Aubrey Masango 702 Gradient Aubrey Masango 702 Gradient
The Aubrey Masango Show
20:00 - 00:00
volume_up
volume_mute

The Aubrey Masango Show
20:00 - 00:00
Home
arrow_forward
Business
fiber_manual_record
Local

Pyramid schemes: It's greed, you think you stand a better chance than the others

8 August 2020 2:44 PM
Tags:
Pyramid schemes
National Consumer Commission
Upmoney Pyramid Scheme
Joseph Selolo

National Consumer Commission director of prosecutions Joseph Selolo says you can't be naive or claim to be duped.

The National Consumer Commission and the Asset Forfeiture Unit, as well as the Financial Intelligence Centre, announced on Tuesday that they had frozen the accounts of the "Up money" investigation and cautioning citizens to not get caught up in pyramid schemes during the COVID-19 pandemic.

The group recruited via social media and made millions before the AFU froze more than R18-million from the scheme's accounts and seized some assets

Refiloe Mpakanyane speaks to National Consumer Commission director of prosecutions Joseph Selolo for more on the WhatsApp gifting operation and how to spot a pyramid scheme.

If the compensation that the people in the scheme receive is primarily based on recruiting of others, that is one of the signs of a pyramid scheme.

Joseph Selolo, Director of prosecutions - National Consumer Commission

Also read: How the National Consumer Commission busted a grocery pyramid scheme

The others are various levels of participation. When you join you are assigned the lowest level and your joining fee is then used to compensate those that are already in the scheme. If you recruit and people join after you've joined then you move up a level and so on.

Joseph Selolo, Director of prosecutions - National Consumer Commission

The amounts are then used to compensate you and those that were there before you. But in reality, everyone understands and knows very well what is a pyramid scheme, it's just that because of greed everyone thinks they stand a better chance than the other person.

Joseph Selolo, Director of prosecutions - National Consumer Commission

On how more than 200,000 people were defrauded, Selolo says there has to be some semblance of legitimacy.

There are some amounts that were used to buy some of these grocery packs and meat packs the Up Money scheme was peddling. Some did receive these things but the majority didn't receive them.

Joseph Selolo, Director of prosecutions - National Consumer Commission

What we found out was that there was another company owned by the same director and some money was transferred to that account to the tune of R4-million. That was the account that was used to purchase vehicles and so on. The other money was dissipated at the points of sale, where things were purchased.

Joseph Selolo, Director of prosecutions - National Consumer Commission

Normally victims will be able to claim compensation and the state would be in a position to impose fines on the perpetrators. But that will not be the case in this specific matter.

Joseph Selolo, Director of prosecutions - National Consumer Commission

You can't be naive or duped because there are two criteria: the first one is that you pay your own R180; the second one is that you go and find five people and bring them in. Now, I don't understand how you can be asleep and somehow be dreaming, sleepwalking and recruiting people, and then say: 'I was asleep, I didn't see myself walking around.' It will be a miracle and I don't think anyone can achieve it.

Joseph Selolo, Director of prosecutions - National Consumer Commission

Listen below for the full interview ...


8 August 2020 2:44 PM
Tags:
Pyramid schemes
National Consumer Commission
Upmoney Pyramid Scheme
Joseph Selolo

More from Business

Happy smiling boys poor poverty child 123rf 123rfbusiness

'I grew up poor, but never realised it'

21 September 2020 8:15 PM

Bruce Whitfield interviews Ciko Thomas (Nedbank) about his attitude to money (hopes and fears, successes and failures, etc.).

Share this:
Read More arrow_forward

2020-09-21MyKreepy Krauly teacher

My Kreepy Teacher: How Kreepy Krauly's parody of My Octopus Teacher went viral

21 September 2020 7:24 PM

Bruce Whitfield interviews the brains behind the hysterical parody of the smash-hit Netflix documentary “My Octopus Teacher”.

Share this:
Read More arrow_forward

rands

Covid-19 resurgence in Europe smashes South African rand off its pedestal

21 September 2020 6:50 PM

The rand was just recently trading at a six-month high. Arabile Gumede interviews Bianca Botes (Peregrine Treasury Solutions).

Share this:
Read More arrow_forward

SAA

We’ll find the money (R10.5bn)! We won’t allow SAA to die – Public Enterprises

21 September 2020 6:23 PM

The "new" SAA needs more than R10 billion to take off. Arabile Gumede interviews Intellidex’s Peter Attard Montalto.

Share this:
Read More arrow_forward

South African Airways SAA 123rf 123rfbusiness

Public Enterprises Department says SAA will get funds

21 September 2020 11:56 AM

Public Enterprises acting director-general Kgathatso Tlhakudi says SAA will not be allowed to be liquidated.

Share this:
Read More arrow_forward

rich wealthy businessman salary 123rf 123rfbusiness

International Equal Pay Day: Be more intentional in empowering women

18 September 2020 1:33 PM

Onyi Nwaneri of Afrika Tikkun says it is a joke to celebrate the day when we still have the pay disparities.

Share this:
Read More arrow_forward

absa-5jpg

Demand for commodities used in lowering carbon emissions will certainly increase

18 September 2020 12:06 PM

There’s an inevitability to it – these commodities (such as vanadium, if the tech improves) have a bright future ahead of them.

Share this:
Read More arrow_forward

car motoring 123rf

'Don't overspend on a car purchase - smaller and cheaper equals better value!'

17 September 2020 9:12 PM

Low interest rates and plenty of deals on offer - personal finance guru Warren Ingram points out the pitfalls on The Money Show.

Share this:
Read More arrow_forward

131022woolworths1 .jpg

Woolworths earnings plummet, but SA food business shows strong growth

17 September 2020 8:58 PM

Woolworths Holdings has released its annual financial results. Bruce Whitfield interviews Group CEO Roy Bagattini.

Share this:
Read More arrow_forward

200319-lesetja-kganyago-edjpg

No change to repo rate - 'Perhaps we've seen the bottom of interest rates'

17 September 2020 8:38 PM

Isaah Mhlanga (Chief Economist, Alexander Forbes) on the reasons for the decision announced by SARB governor Lesetja Kganyago.

Share this:
Read More arrow_forward

More from Local

200921-normandien-edjpg

Community feels farmers are prioritised over dwellers and workers - report

21 September 2020 4:51 PM

Police minister Bheki Cele is expected to have an update on the investigations and details on the Rural Safety Strategy.

Share this:
Read More arrow_forward

Former President Jacob Zuma at the state capture commission on 17 July 2019

Former president Zuma given new date to appear before state capture commission

21 September 2020 3:59 PM

Deputy Chief Justice Raymond Zondo warns issuing a summons against Jacob Zuma to appear before the commission.

Share this:
Read More arrow_forward

chalk-board-classroom-class-desk-teacher-school-education-learnering-123rf

Teachers with comorbidities return back to schools

21 September 2020 3:16 PM

Sadtu says teachers with comorbidities who still feel unwell should apply for normal leave.

Share this:
Read More arrow_forward

South African Airways SAA 123rf 123rfbusiness

Public Enterprises Department says SAA will get funds

21 September 2020 11:56 AM

Public Enterprises acting director-general Kgathatso Tlhakudi says SAA will not be allowed to be liquidated.

Share this:
Read More arrow_forward

Cleaning service household cleaners sanatising 123rflifestyle 123rf

Report on living and working conditions for domestic workers paints dire picture

21 September 2020 11:55 AM

Co-Founder at Sweepsouth Aisha Pandor says domestic workers have been under serious financial pressure during lockdown.

Share this:
Read More arrow_forward

Food security hunger feeding 123rf 123rfbusiness 123rflifestyle

How the Bokashi system can help commercial kitchens repurpose their food waste

20 September 2020 2:17 PM

Bronwyn Jones, the founder of Bokashi Bran, says food waste is the third-largest contributing factor to global warming.

Share this:
Read More arrow_forward

scootersjpg

SIU special tribunal orders Eastern Cape ambulance scooter tender be halted

18 September 2020 5:37 PM

Spokesprson Advocate Selby Makgotho says none of the parties involved have opposed the interdict.

Share this:
Read More arrow_forward

mmusi-dadpng

'Politics have become an elite project designed for a few,' says Mmusi Maimane

18 September 2020 3:41 PM

On this week's #The Upside of Failure we hear from the politician about his failings and how he turns these failures into success.

Share this:
Read More arrow_forward

Xenophobia

Reckless statements by political leaders fuel xenophobia - Human Rights Watch

18 September 2020 2:01 PM

The watchdog says foreign nationals in SA live in constant fear due to xenophobic violence despite government action plan.

Share this:
Read More arrow_forward

rich wealthy businessman salary 123rf 123rfbusiness

International Equal Pay Day: Be more intentional in empowering women

18 September 2020 1:33 PM

Onyi Nwaneri of Afrika Tikkun says it is a joke to celebrate the day when we still have the pay disparities.

Share this:
Read More arrow_forward