Shelly Cullen, a woman who once boasted about being “one of the biggest scammers in New Zealand,” has been sentenced to pay over $5.9 million in penalties for promoting a pyramid scheme. Cullen’s fraudulent activities involved the cryptocurrency-based scheme known as Lion’s Share, which resulted in significant financial losses for tens of thousands of people worldwide.
The Commerce Commission has confirmed that these penalties represent the largest fine ever imposed on an individual under New Zealand’s Fair Trading Act. Cullen, who is believed to be overseas, did not attend her sentencing in the North Shore District Court this week. However, the court proceeded in her absence, delivering a substantial sentence.
Judge Anna Skellern sentenced Cullen to a total fine of $600,000 across five charges, with each charge carrying a fine of $110,000. In addition, Cullen was hit with an additional penalty of $5,328,849, which the court estimated as the total amount Cullen made from the fraudulent scheme.
Under Section 40A of the Fair Trading Act 1986, the court can impose a penalty that matches the commercial gain gained through illegal activities. In this case, the penalty was meant to offset the financial gain Cullen made from orchestrating the scam.
The Lion’s Share scheme saw around 150,000 participants worldwide lose nearly $17 million, with 83 percent of participants losing money. The Commerce Commission expressed satisfaction that the penalties reflect the serious harm caused by pyramid schemes, which have a devastating impact on victims.
Anne Callinan, deputy chairwoman of the Commerce Commission, emphasized the severity of Cullen’s actions. She said that Cullen showed “blatant disregard for the consequences of her actions,” and the Commission argued that the penalties were necessary to deter her and others from engaging in similar illegal activities in the future.
Despite Cullen’s absence from court, Callinan pointed out that the case was pursued to ensure public awareness of the damage done by the scheme.
Cullen had promoted the Lion’s Share cryptocurrency scam to Māori and Pasifika communities in New Zealand during 2020 and 2021. She was convicted of five charges related to fraud and money laundering after a trial held in April, where she did not appear. During the trial, Cullen’s comments from a Facebook Live video were used as evidence, including a remark where she said, “I am going to make history as one of the biggest scammers in New Zealand.”
In the video, Cullen dismissed the consequences of her actions, stating: “F*** the consequences, I ain’t scared. I jump from scam to scam because I can. What’s the consequences? $600,000 slap on the hand.” Ironically, the $600,000 fine she referred to matched the fine the court imposed.
Following her conviction, the Commerce Commission has also alleged that Cullen is linked to another bitcoin-based investment scheme called MaVie, which she has been promoting online and in New Zealand. The Commission has warned communities to be cautious about this and similar fraudulent schemes.
Attempts to contact Cullen for comment on her case have been unsuccessful. However, a social media account associated with Cullen reportedly encouraged users to support her by making investments in the schemes she is promoting.
