Shelly Cullen, who promoted the "Lion's Share" crypto currency pyramid scheme to Māori and Pasifika communities, has been convicted in the North Shore District Court for promoting the scheme responsible for around 150,000 people around the world losing almost $17 million.
The "Lion's Share" pyramid scheme was active during 2020 and 2021. Vanessa Horne, the Fair Trading General Manager of the Commerce Commission, says Cullen's case "highlights a brazen disregard for potentially vulnerable consumers - with the promoter having publicly stated: 'I'm going to make history as one of the biggest scammers in New Zealand.'"
Cullen was taken to court by the Commerce Commission for breaching the Fair Trading Act in April last year; however, the Commission warned Cullen earlier, in December 2020 and sent her a Stop Now letter, ordering her to cease the "Lion's Share" scheme and any similar ones.
"Lion's Share" was promoted on Facebook and YouTube, and the Commission is reaching out the former Meta-owned platform in particular where it is concerned about the nature of some of the schemes being promoted.
Horne said the "Lion's Share" pyramid was a particular focus of the Commission, as 83% lost money from the global scheme. The pyramid also highlights a much broader risk for Kiwi consumers, Horne said.
Worldwide, the amount of money lost to pyramid and Ponzi schemes in 2022 was in the billions of dollars, with blockchain analysts TRM Labs identifying US$9.04 billion being sent that year.
Sentencing for Cullen, who was convicted of five charges of breaching the Fair Trading Act, is yet to take place.
Breaching section 24 of the Fair Trading Act carries penalties of $600,000 per offence. Cullen did not attend the trial on March 27, and did not arrange representation.
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