English patient through selfie stampede
Women who lost thousands of dollars to illegal pyramid schemes promising enlightenment and sisterhood are demanding their money back.
As the truth about the gifting circles becomes known, those who have been involved are speaking out despite being ostracised for it.
Nelson woman Clare Halford, formerly known as Fran, said she recently contacted the ex-leader of a circle she was involved in to say she wanted to be paid back the $5000 US ($7000 NZ) she gave her to join.
‘‘I got a bit more feisty this time and said it was not okay. Last night she put $3000 in my bank account and said we should meet and talk about the rest she owes me.’’
She still hopes to get the $4000 outstanding.
The Commerce Commission last month announced women’s gifting circles are illegal pyramid schemes in breach of the Fair Trading Act, after it launched an investigation last year.
Women operating a circle, or who invite others to join one, may be fined up to $600,000 per offence.
A former medical doctor turned writer, Halford went public last year as part of a three month investigation by journalist Anke Richter.
She was ‘‘hunted down’’ by two respected, professional women from the Nelson community and recruited.
They met as a circle every week to discuss life, spirituality and development, and had a weekly conference call with one other woman and coaching on how to recruit others.
But it wasn’t long before she discovered the ‘‘box of chocolates was actually a box of curds’’.
‘‘It’s really so unbelievable I fell for it — but that’s what’s so insidious about it. The women were really lovely professionals who I respected and admired.’’
Originating in the United States and Bali, many circles have been set up in Auckland, Tauranga, Nelson and Golden Bay over the last few years.
Gifting circles are illegal in Canada and in the US have been under investigation by the FBI where more than 20 circle women have been convicted for fraud and tax evasion and two given a 14-year jail sentence.
There is no website, no registered organisation, just ‘‘friends telling friends’’ who claim their actions are legal because you can privately gift money in New Zealand up to any amount.
Leaders invite women to make a one-off gift of NZ$7000, in return for sacred sisterhood, empowerment and abundance.
They sign a document stating it’s a ‘‘gift and not an investment’’ and that they ‘‘expect nothing in return’’ and cannot ask for it back.
Women enter the circle as a Seed, then move on to Sapling, then Blossom and finally achieve the ‘‘Lotus’’ status to receive a cash gift of $56,000 NZ from eight new women. If they are unable to recruit others the group can collapse.
Only about 12 per cent of women ever make a profit and the rest lose their money.
A ‘‘circle invitation training’’ document from Bali in 2014 tells members to be very ‘‘private’’ about the circles and ‘‘discerning’’ about who they invite.
They are not to talk about it in public places, to keep all documents in a private place, to not invite women in the legal professions and to invite women only by telephone or in person — but never by email.
Halford is part of a Facebook support group for women who have left circles, called the Muddy Lotus, with nearly 100 members. She is encouraging other women to ask for their money back too.
‘‘Many women feel a lot of shame and embarrassment for being involved so they don’t ask. Others don’t want to lose friends in the community. Also because it was a gift, some feel like they can’t get it back.’’
Auckland fashion designer Kattia Wong was also paid back her money by an ‘‘experienced sister’’ from another circle, but not her ex-Lotus.
"When I realised what circle was really about I spoke out and I was on the front of a newspaper and national radio, that’s when I got my money back. They wanted me to shut up.’’
Circles were ‘‘breaking apart communities of women’’ and praying on their loneliness and vulnerability, who were losing While meeting the heroes of Tasman’s economy, Prime Minister Bill English was given a rock star reception during a brief visit to the region on Friday.
English and West CoastTasman candidate List MP Maureen Pugh spent the morning at Talley’s Motueka factory and at the nearby Golden Bay Fruit and Birdhurst’s packing sheds.
English also travelled to Golden Bay for engagements at the Community Health Centre and Collingwood-based online natural health supplier, Health Post.
In visiting Collingwood, English was the first National prime minister to visit the township since Jim Bolger in the 1990s.
As well as meeting with Talley’s management and walking through thousands of dollars to a few at the top.
Women should not feel they are not doing anything wrong by asking for their money back – that it’s their right.
‘‘When they recruit you they make you sign a document saying that you are not expecting anything in return. This is the main reason women don’t ask for their money back, but they need to understand this whole thing is illegal and the document didn’t mean anything anyway.’’
It was ‘‘like a thief selling stolen goods’’, Wong said.
One Golden Bay woman, who did not want to be named, lost all her money but says she has no regrets.
She was involved in two circles over three years and she gifted $7000 to her Lotus, which she took out of her mortgage.
She said she got ‘‘so much in the way of growth and love’’ and felt only positive about the ‘‘genuine women’’ and intention of the group and never felt like a victim.
Another Golden Bay woman said the local circles made her sad because it ‘‘isn’t what women supporting women should be about’’.
She really believed women supporting each other in a ‘‘true circle’’ without monetary gain could bring lasting change.
‘‘But when I see something like this happen in Golden Bay, where it’s getting really catty and messy, it makes me sad.’’ the factory floor, English spoke with staff in the cafeteria, where he emphasised their contribution to the local and national economy.
‘‘When we talk about the economy what we mean is you, because your work – in this case a successful export industry – means there is a lot of income here in Motueka and this wouldn’t happen if you didn’t do your job well.’’
He also stressed his government’s commitment to ensure workers and their families would be better off by around $25 a week thanks to next year’s tax cuts.
‘‘We think it’s important that given the work that you do, with your eight to 10 hour shifts, that you should take home a little more – some of you who I’ve spoken to have grandchildren here in Motueka, so we think that’s pretty important as well.
‘‘When we’re spending money on our schools, we want to make sure we’re getting good results for those kids – because when you go into that factory you can see how hard you guys work for that.’’
When asked what he thought of the latest polls English said it was ‘‘not as good as we’d like’’, but stated that he was currently one of the longest serving leaders in the current NZ political climate ‘‘and I’ve only been there for about six months’’.
He then made himself available to speak with employees, although most of his time was taken up by those seeking a selfie with the country’s leader.
‘‘It’s a bit like that at the moment, but it’s great when things are less formal,’’ he said. ‘‘I just enjoy getting in the workplaces and they work hard here.’’
At the Golden Bay Fruit and Birdhurst site, English and Pugh were given an overview of the horticultural company’s development, which had been helped along by the 260 Recognised Seasonal Employer (RSE) workers employed each year.
Golden Bay Fruit general manager Mike Perrett invited English back to open Golden Bay Fruit Packers’ proposed $25 million packhouse development in February 2019.
‘‘I hope I haven’t given you the commentator’s kiss there,’’ Perrett said.
‘‘There’s only one way to find out,’’ English replied.
Pugh said one of the main reasons for the visit was to showcase the success stories of the West Coast and Tasman regions which were often forgotten at a national level.
‘‘It’s important our colleagues – especially the PM – understand that these are some of the most productive parts of the country and it’s easy to be distracted by the loud noise of the cities.’’
English and Pugh also visited Health Post and the Community Health Centre. HealthPost is the largest employer in Golden Bay, employing 85 staff in Collingwood and 19 in Auckland.
English said it was ‘‘wonderful to see a thriving business’’ in small-town Collingwood. of death