Notorious NZ Pyramid Scheme Promoter Convicted

New Zealand Pyramid Scheme Promoter Convicted of Fair Trading Act Violations

North Shore District Court has convicted Shelly Cullen, the self-proclaimed "biggest scammer in New Zealand," on five charges under the Fair Trading Act for her role in promoting a sophisticated pyramid scheme.

The Commerce Commission alleges that Cullen targeted Māori and Pasifika communities in New Zealand with the "Lion's Share" cryptocurrency-based scheme during 2020 and 2021. It is estimated that approximately 83 percent of participants in the scheme lost their investments.

Vanessa Horne, General Manager of Fair Trading at the Commerce Commission, condemned Cullen's actions as "brazen disregard" for vulnerable individuals. Cullen had boasted publicly of her intention to "make history as one of the biggest scammers in New Zealand," Horne said.

"Pyramid scheme cases are taken seriously due to the significant harm they inflict on our communities," Horne emphasized. "Members are often misled about potential financial returns and risk levels. When these schemes collapse, the consequences for participants and their families can be devastating."

Horne warned that other pyramid schemes continue to circulate, including a new one currently being promoted by Cullen in New Zealand known as "MaVie." The Commerce Commission urges the public to exercise caution around such schemes, especially in light of Cullen's conviction for her role in the Lion's Share pyramid scheme.

Pyramid schemes are prohibited under the Fair Trading Act. However, Horne acknowledged that some individuals may not be familiar with the defining characteristics of these scams.

"Pyramid schemes are constantly evolving, utilizing social media and cryptocurrencies to appear as legitimate revenue-generating opportunities," Horne said. "Typically, they involve purchasing a membership or making an upfront investment with the promise of recruiting new members as the primary means of generating profit, rather than the sale of genuine goods or services."

The Commerce Commission remains vigilant in its efforts to combat pyramid schemes and protect consumers from financial exploitation. Members of the public who suspect they may have been involved in a pyramid scheme are encouraged to report the matter to the Commission.