A director of a company under investigation for operating a suspected pyramid scheme says fraudulent claims led to the business being probed – and has vowed to press ahead with multiple recruitment events this weekend.
SFCVIBE Rating, which has offices in Christchurch’s Riccarton and Auckland’s Manukau, presents itself as an internet advertising service.
However, the Commerce Commission has opened an inquiry into what it believes may be a pyramid-style operation operating in New Zealand, Fiji and Hawaii.
This weekend, the company says it will still go ahead with two recruiting events in Auckland and Christchurch for paid members and their families.
The Auckland event will be held this Saturday in Mt Wellington, while the Christchurch event will go ahead on Sunday in Sydenham.
Ronald Vaz, director of SFCVIBE Rating Riccarton, said the events are a “thank you” from the company, with raffle tickets and prize money to be given away.
Vaz also said that a select few people using the service had created fraudulent accounts, which had flagged the firm as an alleged scam and sparked the Commerce Commission inquiry.
“It’s not somebody from outside the system who’s saying that this is a scam,” he said.
“[They] were creating fraudulent accounts and were making problems for the company.”
He said 1400 people are making money on the platform, but 150 people working under a certain supervisor went “rogue”, attempting to siphon money out by using different usernames on the platform.
“His full team was put under investigation. That is the whole reason this whole thing has come to light,” Vaz said.
“Otherwise, since September, everybody’s been working, and everybody’s been making money and just having a peaceful time.”
Commerce Commission head of fair trading and product safety investigations, Simon Pope, said the regulator continues to investigate SFCVIBE Rating after receiving reports that it is a suspected pyramid scheme.
“We would reiterate our earlier warning that anyone who comes across SFCVIBE Rating should exercise caution; if what the scheme offers seems too good to be true, it probably is,” Pope said.
“Our investigation continues to progress, and we will provide further updates in due course.”
Earlier, Pope said the company appeared to be operating in multiple countries, including New Zealand, where it has several offices.
“The scheme attracts users by offering high payouts for completing basic digital tasks, such as rating and reviewing movies,” he said.
“The scheme involves the recruitment of others. It requires new participants to join via a referral link and to pay a subscription or deposit before starting work.”
Pope said anyone with information or concerns should contact the Commerce Commission.
He also reiterated a warning issued earlier this month by the Consumer Council of Fiji, which “expressed grave concern” over the suspected pyramid scheme.
“The National Anti-Scams Taskforce has expressed grave concern as the SFC Vibe scam continues to lure in thousands of Fijians despite multiple previous warnings,” the Consumer Council of Fiji said.
“Once again, the task force is reiterating that there is absolutely nothing to be gained by engaging in these fraudulent schemes.
“The citizens are being reminded that participation in such activities will inevitably lead to significant financial loss, and those who continue to invest are doing so at their own peril.”
The taskforce said SFCVIBE Rating “bears all the hallmarks of a fraudulent scheme”, presenting itself as a global business despite only being registered locally on February 27 this year in Labasa, Fiji.
“This discovery raises the critical question of why a supposedly international entity would be newly registered in a small regional branch just days ago.”
Fiji National Anti-Scams Taskforce chair and Minister for Finance, Commerce and Business Development Esrom Immanuel warned the public against engaging with such schemes.
“The desire for quick and easy cash often blinds individuals to the reality of the fraud, leading to total financial ruin,” he said.
“No recruitment agency or company will ever ask you to invest a certain amount of money as a subscription, in return for more money.
“Ask yourself, is this really a legitimate transaction or does something feel fishy?”
Jazlyn Whales is a multimedia journalist based in the Christchurch newsroom.