Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Ponzi scheme operator receives jail term for $17.5m fraud

23 March 2018

Ponzi scheme operator receives jail term for $17.5 million fraud

A Christchurch man who defrauded his clients of at least $17.5 million through a Ponzi scheme has been sentenced to eight years in prison with a minimum non-parole period of four years for charges brought by the Serious Fraud Office.

Paul Hibbs was sentenced today at the Christchurch District Court. He previously had pleaded guilty to charges of ‘False statement by promoter’, ‘Theft by person in special relationship’, ‘Using forged documents’ and ‘Forgery’.

Mr Hibbs owned and operated Cameron Gladstone Investments Limited and Hansa Limited. Through these entities he provided clients with false investment reports and used their funds for unauthorised activities, which included using the proceeds from sales of clients’ investments to pay other investors. Mr Hibbs also used client money for business expenses, including paying dividends, and for personal purposes.

SFO Director, Julie Read said, “The sentence imposed today reflects the very serious nature of the offending. Mr Hibbs deceived his clients in a number of ways resulting in significant monetary losses. The prosecution of such matters is an important aspect of protecting New Zealand’s reputation as a safe place to invest and do business. People engaged in this sort of misconduct will be prosecuted and held to account.”

The Financial Markets Authority initially referred the matter to the SFO and assisted with the investigation.

FMA Chief Executive, Rob Everett, said, “Investors need to be vigilant about who they deal with and should always check to see if a financial service provider is licensed by us or another New Zealand regulator (such as the Reserve Bank), or the financial adviser is authorised by us. Our website will show which firms or individuals are licensed or authorised by the FMA.”

ENDS

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On Dune 2, And Images Of Islam


Depictions of Islam in Western popular culture have rarely been positive, even before 9/11. Five years on from the mosque shootings, this is one of the cultural headwinds that the Muslim community has to battle against. Whatever messages of tolerance and inclusion are offered in daylight, much of our culture tends to be hostile to Islam when we’re sitting in the dark, with popcorn.
Any number of movie examples come to mind, beginning with Rudolf Valentino’s role (over a century ago) as the romantic Arab hero in The Sheik...
More


 
 


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:


Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.