Serial Ponzi promoter Shelley Cullen has been convicted of 5 violations of New Zealand’s Honest Buying and selling Act.
Cullen, who as soon as declared she wished to be “one of many largest scammers in NZ”, is dealing with a superb of as much as $600,000 NZD per violation.
Cullen’s authorized troubles in New Zealand started in 2020. After receiving “a lot of complaints”,
the [Commerce] Fee contacted Ms Cullen on 18 November 2020 and suggested her that it had opened an investigation into the scheme which the Fee believed at the moment was operated by Ms Cullen.
The scheme in query was Lion’s Share, an MLM crypto Ponzi cycler run by serial scammer James Ward.
After Lion’s Share collapsed Ward went on to launch extra MLM crypto scams. Ward has been quiet since the CFTC caught up with him in 2022.
The Fee held an interview with Cullen on November twenty fourth, 2020.
On the interview Cullen lied to the Fee;
Ms Cullen acknowledged that the scheme was not an funding scheme however relatively a gifting/crowd funding programme the place everybody items into the sensible contract and the sensible contract pays folks out.
[Cullen] famous she was merely a participant and that the proprietor is nameless similar to bitcoin.
Lion’s Share’s enterprise mannequin noticed the Ponzi scheme pitch buyers on 200% and 300% returns, funded by subsequent funding.
When the Fee requested Cullen about depositing cash into Lion’s Share,
she declined to reply and instructed the Fee discuss to James [Ward] (the alleged creator of the scheme).
Nonetheless, when requested for his contact particulars, Ms Cullen failed to reply.
A lot for Lion’s Share’s aNoNyMoUs OwNer.
Following Cullen’s interview the Fee issued a stop and desist towards Cullen in December 2020. The Fee’s order prohibited Cullen from persevering with to advertise Lion’s Share.
As a part of the Fee’s enforcement motion, Cullen was additionally ordered to “make a proposal for compensation and returning cash” from her victims.
On 24 December 2020, Ms Cullen confirmed she had stopped her promotion of [Lion’s Share] however didn’t suggest plans for compensation.
A month later Cullen took to social media to additional incriminate herself.
On 19 January 2021 Ms Cullen posted a FaceBook dwell video which fashioned a part of the proof through which she acknowledged:
-“I’m going to make historical past as one of many largest scammers in NZ”;
-“I can’t do every other tasks a the second, my attorneys bought to move every part I do”;
-“Fuck the implications I ain’t scared”;
-“I bounce rip-off to rip-off as a result of I can. What’s the implications $600,000 slap on the hand”;
-“The most important penalty I’ll get… I don’t thoughts if I’m going to jail”;
-“I don’t have a checking account and I’ll say you aren’t getting my password you’ll be able to lock me up”.
Ms Cullen declined any additional contact with the Fee.
The Fee didn’t hear something additional till April twenty second, 2022, whereby
Ms Cullen forwarded correspondence to the Fee, the aim of which is unclear however seems to counsel that the Fee is making a fraudulent declare for unjust enrichment.
The Fee tracked down Cullen on September twentieth, 2022.
[Cullen] confirmed her e mail tackle however then disconnected the decision with the Fee.
Someday after the decision Cullen fled New Zealand “and [has] not returned”.
An April twenty third, 2024 FaceBook submit by Cullen suggests she is in Dubai.
“Mavie” refers to Mavie International, one other MLM crypto Ponzi on its third reboot.
The Fee famous Cullen’s promotion of Mavie International in an April twenty third press-release;
Ms Cullen has been selling a brand new funding alternative often called ‘MaVie’, and so we’re urging communities to train warning round this and all related schemes.
The Fee advises it has already began sending out Compliance Recommendation Letters to Mavie International promoters in New Zealand.
Mavie International relies out of Dubai, the MLM crime capital of the world. Cullen herself fled New Zealand for Cyprus.
Though she’s been dodging New Zealand over the previous few years, Cullen seems eager on establishing ties with neighbouring Australia.
Again in New Zealand, Lion’s Share proceedings towards Cullen continued in her absence.
This culminated in an April twelfth, 2024 judgment, discovering Cullen responsible of 5 violations of the Honest Buying and selling Act.
In handing down judgment towards Cullen, Decide Skellern wrote;
I’m happy that every factor of the 5 consultant expenses is confirmed past an inexpensive doubt.
Ms Cullen is discovered responsible in respect of every cost.
Pursuant to S40(1A) of the FTA, Ms Cullen is liable to a most superb on every cost of $600,000.
A sentencing date is to be allotted in session with the prosecutor and Ms Cullen is invited to make submissions as to condemn ought to she want to take action.
From this I take it jail time is off the desk. Nonetheless, Cullen faces a most penalty of $3 million NZD ($1.7 million USD).
Pending updates on Cullen’s sentencing, we’ll preserve you posted.