The single-biggest challenge faced by online MLM Ponzi schemes is credibility.
In addition to proof of an external revenue source, registration with securities regulators is one of the tallest hurdles to overcome.
So important is convincing your investor-base that you’re above board, that some companies will openly lie about it.
Miner World is one of those companies, having recently represented it was registered with Paraguay’s SEC equivalent, the National Securities Commission (CNV).
The CNV was having none of it though, today issuing clarification that Miner World’s claims are “illegitimate”.
MinerWorld being a Brazilian scam with little to no English presence, finding an example of the company claiming to be registered with the CNV has been elusive.
What we do know however is the CNV have been investigating MinerWorld for some time.
Back in May Fernando Escobar, head of the CNV, confirmed to La Nacion that the regulator was ‘gathered data (on MinerWorld) to deliver to the judicial authorities‘.
Escobar also confirmed a ‘complaint had been made to the Attorney General of the State‘.
According to an October 3rd press-release issued by the CNV, on September 28th MinerWorld told affiliates
the National Securities Commission of Paraguay (CNV) has approved this Thursday (28th) that MinerWorld can start operations in the country.
In their press-release the CNV clarify
- MinerWorld is not registered with the CNV
- MinerWorld does not have the authorization of CNV to operate in Paraguay and
- the statements issued by MinerWorld concerning registration with the CNV are “illegitimate”
The CNV goes on to warn entites not registered with the CNV who offer securities in Paraguay do so illegally.
Those caught engaging in securities fraud face imprisonment for up to three years and/or a fine.
Suspects spreading “false news” pertaining to securities fraud face up to five years imprisonment.
Whether the CNV pursues the matter further remains to be seen.
MinerWorld meanwhile at least will be unable to continue to represent false regulatory compliance in Paraguay.
Brazilian Federal Police are also investigating the Ponzi scheme but as of yet nothing has come of it.