ACTING National Consumer Commission commissioner, Thezi Mabuza, says they’ve closed the tab on Up Money pyramid scheme.
She said the scheme, which isn’t registered with the Reserve Bank, is not a registered stokvel, nor is it a financial services provider, used social media to recruit members.
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In Tshwane yesterday, Thezi said Up Money scammed people by making them pay a once-off joining fee of R180, qualifying them for a meat pack.
She said the scheme robbed over 230 000 investors.
“New members were then required to recruit five other new participants. This process was termed level one.
“The original investor would then help the five he or she recruited to sign up their five new members each.”
She said although the scheme received R42 720 501,82 between 4 May and 2 July, over R12,5 million was blown in purchases at retail stores and on three luxury vehicles.
“We were alerted to the scheme by a complainant from East London.
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The commission’s investigation revealed Up Money contravened the Consumer Protection Act by promoting and causing members of the public to participate in a pyramid scheme.”
The Gauteng Division of the High Court granted the unit orders to freeze bank accounts worth over R18 million and luxury vehicles associated with scheme director Jade Matsemela and ex-director Sipho Mdlhuli.
