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.
5 Comments
Its not a pyramid when it is a flat line with a tiny pimple in the middle.
Estimated probability on having to pay redress for victims and seeing significant jail time is near 0. Estimated probability on having to pay a proportionate fine is near 0. NZ courts are so heavily tilted to the perpetrators of crime instead of the safety of the public, and the damage to & redress for victims that there is almost no punishment for theft and most offenses can carry no redress to victims & jail time. There seems to be less support to investigate thefts either with most having no investigation effort more time is spent on just reporting so as to make the reporting of crime pointless.
Hence most scam victims are at the reverse stage they would report but see it as a fruitless and time consuming process that benefits no one and does not prevent new victims being hooked by the thieves. Then authorities wonder why people give up on reporting crimes or resort to vigilante behaviour and try to seek out the thieves themselves or just block entry to people who remind them of the thieves (with poor accuracy often failing at this point). Preventing theft is an impossible task as noone truly can prevent someone who is determined. It is a sliding slope to solely think that victims of crime should pay out ever increasing costs for different methods of protection, none of which can actually stop a person targeting them or damaging property &family members lives.
According to her Facebook (2 days ago) she's looking for a rental in Australia and still seems to be quite busy promoting.
I found a presentation to watch!
MAVIE Presentation - Shelly Cullen with special guest a top Mavie Global Leader Neo Anderson
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