The Commerce Commission of New Zealand has taken action against two individuals, Frances Saimone and Patricia Pousini, who pleaded guilty to charges related to the promotion of a pyramid scheme known as the '6K Gifting Co-operative'. This scheme targeted the Pasifika community in South Auckland, promising participants returns of up to $6,000 in exchange for their initial investment of $750.

Associate Commissioner Joseph Liava’a highlighted the dangers of pyramid schemes, particularly in close-knit communities where trust is prevalent. The scheme was marketed as a 'family and friends' initiative, leveraging cultural traditions of gifting to recruit participants. Despite claims from Saimone that the scheme was not a pyramid scheme, the Commission emphasized that such schemes are illegal under the Fair Trading Act.

During the investigation, it was estimated that at least 240 individuals were involved, with total investments ranging between $225,000 and $336,750. However, the true financial impact on victims remains difficult to assess due to the cash-based nature of the scheme. The Commission aims to protect vulnerable consumer groups and has previously prosecuted similar cases, warning that pyramid schemes can lead to significant financial losses for participants.

Both Saimone and Pousini were fined for their roles in the scheme, with Saimone receiving a fine of $33,306 and Pousini fined $10,200. A third individual, Feleti Halafihi, was found guilty of failing to provide information to the Commission and was fined $9,000. The Commission's actions serve as a cautionary tale for others who may consider promoting similar schemes.