In 2019, the FMA became aware of fraudulent activities carried out by Barry Kloogh. We referred the matter to the Serious Fraud Office at a very early stage and after we had completed a preliminary investigation into the flow of funds within Kloogh’s Ponzi scheme.
Kloogh used companies he controlled as a “front” for his Ponzi scheme.
We carried out further enquiries into how Kloogh was able to exploit the trust and goodwill of his clients utilising services provided by third parties FNZ Limited and FNZ Custodians, Consilium NZ Limited, and Bank of New Zealand.
This report concerns our enquiries into what services were provided to Kloogh by these third parties. The purpose of this report is to record the FMA’s views and findings on the conduct that was the subject of these enquiries, the law that applies to that conduct, and our actions as a result of our findings.
