Pyramid scheme

[AlmightyBender]

How he *cheats* the system...

If they say you need to recruit 10 people to move to the next level & an additional 5 people to move to the top level. He simply brings 15 family members & pays for all of them, then already he's at the top level.
Then the people he actually recruits after that, are the ones who join beneath the *dummy* members & this in turn pushes him to the next level/tier. By the time the scheme collapses, he's already recovered the 15 mebership fees & their earnings, as well as his collections from being right at the top. It works for him because he has lots of money to play around with, but for the average joe, not recommended!
The last scheme that collapsed he lost R120 000, but by then he had already made R430 000, after only investing R15 000 (R1 000 for each *new member*)! insane!

If by "system" you mean innocent vulnerable people then yes, he cheats them well and good.

Your dad should be ashamed of himself!

 

[TelkomUseless]

How he *cheats* the system...

If they say you need to recruit 10 people to move to the next level & an additional 5 people to move to the top level. He simply brings 15 family members & pays for all of them, then already he's at the top level.
Then the people he actually recruits after that, are the ones who join beneath the *dummy* members & this in turn pushes him to the next level/tier. By the time the scheme collapses, he's already recovered the 15 mebership fees & their earnings, as well as his collections from being right at the top. It works for him because he has lots of money to play around with, but for the average joe, not recommended!
The last scheme that collapsed he lost R120 000, but by then he had already made R430 000, after only investing R15 000 (R1 000 for each *new member*)! insane!

one day those members he recruits will come after him.Take only one nut job to lose his money and you got a crazy on your hands.

Sounds little illegal? Fraud.. he is using other people's ID numbers etc? Do they sign the papers? (The family members). Do they get anything ?

 

[MickZA]

one day those members he recruits will come after him.Take only one nut job to lose his money and you got a crazy on your hands.

Sounds little illegal? Fraud.. he is using other people's ID numbers etc? Do they sign the papers?

I'm sure there was a case in the Eastern Cape in the past couple of years where people who benefited from these schemes were forced to return the proceeds and join all the other creditors in waiting for a final payout. Anybody recall it?

 

[w1z4rd]

You should never invest or give money to anything you dont understand fully and 100%. I could never imagine giving more than R5000 to anything without doing a lot of homework on it. Had homework being done you would have seen it was a pyramid scheme.

There is no such thing as easy money. If its too good to be true. It is.

 

[Skywalker42]

Remember Adriaan Nieuwoudt

The Kubus scheme was a Ponzi scheme that originated in South Africa in the 1980s and was subsequently exported to the United States. It remains among the biggest frauds in the history of both countries

https://en.wikipedia.org/wiki/Kubus_scheme

And Krion

The master brain behind the Krion scheme, Marietjie Prinsloo, was sentenced yesterday to 29 000 years’ imprisonment on 118 409 charges, including racketeering and money laundering. She will serve an effective 25 years.

 

[ice_cubes]

one day those members he recruits will come after him.Take only one nut job to lose his money and you got a crazy on your hands.

Sounds little illegal? Fraud.. he is using other people's ID numbers etc? Do they sign the papers? (The family members). Do they get anything ?

If by "system" you mean innocent vulnerable people then yes, he cheats them well and good.

Your dad should be ashamed of himself!

I have no idea & I dont really care. He's used to crooking people out of their hard-earned cash. Oneday he'll get whats coming to him.