Gold trader untruthful with investors

Gold trader untruthful with investors

The Director of Grace Holdings NZ Limited (Grace NZ), Kairuaiti Tangata Oropai Robert Kairua (55), has pleaded guilty in the Auckland District Court to charges laid by the Serious Fraud Office (SFO).

In January 2013, the Serious Fraud Office laid 17 Crimes Act charges of theft by a person in a special relationship and 12 charges of false statement by a promoter.

Mr Kairua has pleaded guilty to 13 of the 17 theft charges, and 9 of the 12 false statement charges.

Grace NZ traded under the name BullionBuyer; its core business being the trading of gold and other precious metal on behalf of investors.

At the time of its collapse, Grace NZ reportedly held investor funds of approximately $2.7 million. Mr Kairua made false statements in brochures regarding his experience and qualifications, the nature of the trading, and the insurance and storage of physical metals. He also failed to report losses suffered by investors, which created a misleading picture. This induced further investment and influenced investors to maintain their existing investments with Grace NZ. Mr Kairua misappropriated funds of approximately NZ$370,000 and invested funds contrary to investor instructions.

SFO Director, Julie Read said the SFO commends those investors who stepped forward and contacted the agency.

“Precious metals trading and other highly speculative investments represent a significant risk to retail investors. Generally, such investors rely entirely on the integrity and expertise of their advisers. If investor trust is abused, the SFO considers it important to ensure those advisers are brought to justice to protect New Zealand’s reputation as a safe place to invest and do business.”

Mr Kairua is to be sentenced on 3 July 2015.

ENDS

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