Court Report: Ponzi ponderings
Hamish McNicol discusses Ponzi schemes in Court Report. With special audio feature.
Investors refusing to speak with liquidators, the Financial Markets Authority defending its disclosure, and a $249,000 refund.
All these issues were raised this week as the Christchurch-based Ponzi scheme, Arena Capital – which traded as BlackfortFX – unravelled further.
Arena, directed by Jimmie McNicholl, was last May shut down by the FMA, with it since emerging more than 900 people are owed about $7 million.
But 96 clients owe the company about $2.5 million, with liquidators this week saying some of those are refusing to speak with them.
Formal legal notices have been served on 12 of these investors to date.
Related litigation saw the liquidators unsuccessfully seek to keep $249,000 paid in by investors after the FMA gained asset preservation orders against the company.
The FMA later defended its disclosure relating to Arena, as this money was invested by 17 investors in the six days between gaining these orders and an announcement by the market watch dog.
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Thu, 25 Feb 2016
Thu, 25 Feb 2016
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Court Report: Ponzi ponderings
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