Two individuals have pleaded guilty in the Manukau District Court for promoting the ‘6K Gifting Co-operative’ pyramid scheme targeting South Auckland’s Pasifika community.
Frances Saimone and Patricia Pousini recruited hundreds into the cash-based scheme, promising returns up to $6,000. Participants ‘gifted’ $750 and were required to recruit others to receive payouts. The scheme was presented as a ‘family and friends’ group, aligning with Pasifika gifting traditions.
Commerce Commission Associate Commissioner Joseph Liava’a emphasized the risks. “We saw with Shelly Cullen’s Lion’s Share how big these schemes can become – and how quickly they can trap victims. In that case, 150,000 participants worldwide lost a total of almost $17 million.”
Saimone was fined $33,306 and ordered to pay $1,500 in reparation to two victims. Pousini received a $10,200 fine. A third individual, Feleti Halafihi, was fined $9,000 for failing to provide information during the investigation.
Liava’a warned. “If you need to recruit people in order to make money and there’s no real product or service involved, it’s probably an illegal pyramid scheme – don’t risk it.”
The Commission urges consumers to be cautious of schemes requiring recruitment for financial gain, as they often collapse, leaving most participants at a loss.
