Pyramid Scheme

Not wanting to be named, this mother joined the Golden Group Kiwiland Refund line twice, investing $1500 overall.

She made her first payment of $750 to ‘Alapasita Tu’ima a representative from the scheme, and was promised she would receive $3000 within ten days.​

"When I went to her house it was her and another guy Tom, they were going on and on about the scheme going good. 

"I went on a Monday and paid my fee, where​ she said to me, ten days from now, on the eleventh day I’ll get paid."

Natalie Vincent, of Ngā Tāngata Microfinance, said many pyramid schemes use cryptocurrencies, and are promoted primarily to Māori and Pasifika families.

Vincent said a new pyramid scheme is being sold to vulnerable people in the form of 'gifting' or 'koha' with the promise of making quick money.

It suggests people can get up to $20,000 after making three payments of $150.

Vincent said some people might make money at the very early stages, but further on, as is the nature of such schemes, it will collapse, leaving no money for anyone.

Ning Shisheng, who has lived in Australia since 2010, was arrested on an Interpol warrant in April when the cruise he was on stopped on the Isle of Pines.

Judicial authorities in Noumea, who examined Beijing's extradition request, are in favour of complying with it.

However, the lawyer acting for the 64-year-old suspect says China's prison system doesn't comply with France's international obligations.

The lawyer noted that New Zealand recently rejected a Chinese extradition request, citing human rights risks.

Mr Ning says he is no fraud.

The National Reserve Bank of Tonga said WorldVenture was clearly a multi-level marketing company that encouraged people to recruit more members.

The bank said it had become aware that the company had received support in the Tongan community.

Pyramid schemes are unsustainable business models and are illegal under the country's Financial Institutions Act, the bank said.

From PACNEWS