“It has never been proven by the Consumer Commission and\/or by the South African Courts that MMM Community is indeed a Ponzi\/pyramid scheme as alleged,” it said.<\/p>\n
“Because of this situation, a number of participants, representative of the larger MMM-RSA Community has decided to approach the Court for clarity in this matter.”<\/p>\n
MMM is currently under investigation by the Hawks<\/a><\/strong>, with the National Consumer Commission listing it as a potential pyramid scheme.<\/p>\n The Consumer Protection Act describes any scheme that offers returns 20% above the repo rate (6.25%) as a \u201cmultiplication scheme\u201d \u2013 otherwise known as a Ponzi scheme.<\/p>\n The NCC recently sent out a warning cautioning consumers not to allow themselves to be taken for a ride.<\/p>\n \u201cIf it sounds too good to be true, then it probably is too good to be true and don\u2019t invest,\u201d said commissioner Ebrahim Mohamed.<\/p>\n The commission has also warned consumers to be aware that taking part in pyramid or Ponzi schemes is a criminal offence.<\/p>\n In its statement against allegations, MMM said it is not an investment scheme, rather\u00a0it is\u00a0“a platform for exchange of donations between its members”.<\/p>\n “In MMM all the members are informed that they are donating spare money but not investing money,” the group said.<\/p>\n “That is why MMM cannot be labelled as a Ponzi scheme. A Ponzi scheme is a form of investment fraud that involves the promises of high return on investments.”<\/p>\n The group says that it does not promise or guarantee returns – despite the group advertising the fact users can earn up to 30% per month<\/strong> quite clearly on its site.<\/p>\n The group also denied reports that the global scheme had collapsed, saying it simply restructured a failed experiment scheme, and it would have no impact on other schemes attached.<\/p>\n “How can MMM collapse if there are neither investments, nor returns? People will always be ready to help others and they will want to receive assistance from others. The cause of freedom cannot collapse,” it said.<\/p>\n Russian \u2018Ponzi scheme\u2019 raises fraud flags at SA bank<\/a><\/strong><\/p>\n Gimmicks that took South Africans for a ride<\/a><\/strong><\/p>\n R699 car scandal: who\u2019s to blame?<\/a><\/strong><\/p>\n“We’re not a Ponzi scheme”<\/h3>\n
![\"MMM\"](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2016\/04\/MMM-640x260.png\")
<\/a><\/p>\nMore on schemes<\/h3>\n