This story originally appeared on RNZ.co.nz and is republished with permission
A promoter of a suspected pyramid scheme in New Zealand has been told to stop or face court.
The Commerce Commission is cracking down on the Lion’s Share scheme, a cryptocurrency operation.
The commission announced it had sent a “Stop Now” letter to one of the promoters, Shelly Cullen, who was recommending it online and in person.
Cullen regularly held seminars online and in person, stating Lion’s Share gave people an opportunity to earn extra money. She is popular on social media, with some of her videos receiving tens of thousands of views.
The letter urged Cullen to stop associating with and promoting Lion’s Share.
On receiving the letter, Cullen told the Commission she had stopped promoting the scheme.
If she did not, the commission could seek an injunction in the High Court.
In a statement, the Commission said the investigation was ongoing.
“However, because it considers that the Lion’s Share scheme is likely a pyramid scheme, the Commission advises any individuals already involved with the Lion’s Share scheme to cease their involvement and those considering joining the Lion’s Share scheme are advised not to do so,” the statement read.
Pyramid schemes are illegal under the Fair Trading Act.
They can take many forms but usually offer a financial return based on payments made by new recruits.
Returns are dependent on the recruitment of new members, not sales of a product or service.
This is a problem because many participants will always be near the base of the pyramid and will not get the promised return on investment.
Only the few initial participants at the top of the pyramid would likely make money, since the number of possible new recruits in any community would be limited.
FAKAMATALA FAKA-TONGA:
Kamata ke ngÄue atu maāu mafai āa Nuāu Silaā kia kinautolu āoku nau tuāuaki āa e uki kakai ke nau lÄ«lÄ« paāanga kae palÅmesi tokua te nau maāu āa e paāanga lahi ange. Kuo tohi āa e Commerce Commission āa Nuāu Silaā āo fakatokanga ki he taha e kakai kuo pehÄ āoku nau tuāuaki āa e vaāinga tÄnaki paāanga taāefakalao āi he founga ko e sikiimi pilamita pe pyramid scheme. Ko e foāi lÄ«lÄ« paāanga āeni āoku fai āaki hano uki fakatokolahi mai ha kakai ne kau lÄ« āa e paāanga taki lauteau āi he funga e palÅmesi te nau toho ha paāanga āoku lahi angeā. āOku lolotonga felauaki foki heni ha niāihi e komiunitÄ« Tongaā āo tatau āi Tonga mo Nuāu Silaā ni āo tuāuaki āe ha niāihi āoku lelei pe tokua ia, kae taimi tatau kuo āosi āasi hake āa e ngaahi lÄunga āa ha kakai Tonga ne nau kau ki he ngaahi lÄ«lÄ« āi āAokalani mo Tongatapu āo pehÄ kuo mole āenau siliniā ka kuo āikai maāu ha meāa ia. āOku mahino foki āoku fakatauele āa e faāahinga lÄ«lÄ« paāanga ko āeniā he ko āene kamakamataā āoku malava ia ke uini (win) ha niāihi ha paāanga lahi ange he meāa ne nau liiā. Kae fakatatau ki he hisitÅliaā ko āene fuoloa atu pe mo āene āalu ke tokolahi angeā ko āene hoko ia āa e palopalemaā. Pea ko e meāa ia āoku ui ai āa e faāahinga vaāingaā ni ko e pilamita he ko e kiāi tokosiāi pe āi he tumuāakiā te nau maāu e melieā ko e toenga tokolahi āi laloā āe āikai ke nau maāu āenautolu ha meāa, ko e fakamole āataāatÄ pe. Ko e foāi ngaue ko eni kuo fai e fakatokanga ki ai āi Nuāu Sila niā ne ui ko e Lionās Share. Kuo tuku atu ai ha tohi āa e Komisoni ki he fefine ko Shelly Cullen ke taāofi leva he āoku taāefakalao. Ne ne āiloa āa Cullen he mÄ«tia fakasÅsiale āi hono tuāuaki āo e lÄ«lÄ« taāefakalo ko āeniā ki hono kau muimuiā.
