The South African Financial Sector Conduct Authority (FSCA) has issued a public warning about QZ Asset Management, a Chinese multi-level marketing scheme that has been organizing lavish investment events at high-end Johannesburg and Durban hotels.
The FSCA has received numerous complaints from QZ Asset Management clients who have been unable to withdraw their funds since the scheme’s website went down. In response, the FSCA stated that QZ Asset Management is not authorized or registered under any FSCA or Prudential Authority legislation.
To address this troubling situation, the FSCA has launched an investigation into QZ Asset Management’s activities. Furthermore, an online petition with over 3,500 signatures accuses the scheme and its directors of deception and fraud.
According to evidence on social media platforms, QZ Asset Management held events where local promoters enthusiastically promoted the scheme, claiming that it could generate fourfold returns on investments in a week. A promoter in a recent video expresses gratitude for being a part of transparent and integrity-driven leadership that is unaffected by negative social media news. The video also extols the platform’s transformative power and its potential to produce a slew of multimillionaires.
In addition to Johannesburg and Durban, promotional flyers for QZ events have been seen in Soshanguve, Bethlehem, Ivory Park, and Phalaborwa. According to archived information on the QZ Asset Management website, the company is headquartered in Guangzhou, China. The scheme, according to its website, uses “big data and artificial intelligence” to make automated investment decisions that outperform the market. QZ Asset Management advertises on social media a 400% weekly return on investments starting at around R2,000.
In addition to financial gains, the group claims that successful investors will be able to obtain luxury items such as Ferrari supercars, Hermes bags, and hotel stays as part of a “recognition program.” Blake Yeung, the CEO of QZ Asset Management, is said to have expressed plans to visit South Africa in June and open a 3,000-square-foot office in Johannesburg. Furthermore, the group announced its intention to file for listing on the New York Stock Exchange, urging members to buy shares at $2 (R40) in anticipation of the listing.
Despite attempts to obtain comments, QZ Asset Management did not respond to the request for clarification.
Finally, the FSCA has warned the public not to conduct any transactions with QZ Asset Management due to its lack of authorization and registration. The investigation by the authority aims to shed light on the activities of the scheme, while an online petition highlights growing concerns about potential fraudulent practices. Individuals must exercise caution and conduct thorough research before engaging in any investment opportunities in order to protect their financial interests.
