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Abstract:Kiwi woman Shelly Cullen was found guilty of leading a pyramid scheme, impacting thousands and misusing NZ$17 million.
New Zealander Shelly Cullen was found guilty of many crimes related to her participation in a large-scale pyramid scam, marking a landmark judicial breakthrough. The “Lion's Share” plan hurt the Māori and Pasifika communities in New Zealand more than any other, causing billions of dollars in losses around the globe.
With the announcement of Cullen's conviction, the Commerce Commission of New Zealand (ComCom) emphasized the cleverness and seductiveness of these fraudulent schemes. According to Vanessa Horne, General Manager of Fair Trading at ComCom, “Lion's Share” attracted over 150,000 participants globally, resulting in losses of almost NZ$17 million.
Cullen was previously cautioned with a “Stop Now letter” to stop her illegal acts in December 2020. Cullen was a well-known individual on ComCom's radar. She continued to promote the cryptocurrency-based strategy in 2020 and 2021 despite being cautioned.
Based on the Fair Trading Act, the court found Cullen guilty and sentenced her to five years in prison for promoting “Lion's Share.” Throughout the trial, her confession to the public that she wanted to become “one of the biggest scammers in New Zealand” was very damaging.
83% of the program participants lost money, as Horne clarified when he discussed the dire consequences of such scams. When these plans fail, the destruction they inflict on people and their families is immense.
Cullen is reportedly advocating “MaVie,” which is yet another problematic approach that exacerbates the problem. Under the Fair Trading Act, pyramid schemes are prohibited, and ComCom is keeping up its efforts to alert and educate the public about these types of fraudulent transactions.
“This case not only underscores the personal losses that can accrue from involvement in these schemes but also serves as a critical reminder of the broader risks these schemes pose to all Kiwi consumers,” Horne said.
Authority efforts to communicate with the community are intensifying to apprise potential victims of the dangers associated with these illicit and deceitful financial schemes.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
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