The BBC investigative programme ‘Watchdog’ has claimed that former 'Apprentice' contestant Lindi Mngaza is running an illegal pyramid scheme.
In a 'Watchdog' report that used undercover journalists and covertly shot footage, Mngaza was shown soliciting money from women who attended a meeting, claiming that they would see their investments grow quickly from an initial £1,000.
Mngaza claimed that she had herself made £48,000 from an initial investment of £1,000.
During the secretly shot footage, she added: "A credit crunch is an opportunity. Do you know what I mean, guys? You've got to think - there are more millionaires made in a bad economy then there are at any other time and then it's people that think oh my God I've got a credit crunch wardrobe, can I do anything?"
Financial expert, Tony Northcott of the Trading Standards Institute, told the programme: "It is a pyramid, pure and simple. You have to recruit people to get more income to distribute it. There's no new money - someone is going to lose and lose a lot of money."
Mngaza, who was fired by Sir Alan Sugar in week five of this year’s UK Apprentice, denied the allegations during the show.
