Kiwi ponzi scheme may have scammed Aussie pensioners...
April 11th 2010 08:07
Kiwi ponzi scheme may have scammed Aussie pensioners..
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A Kiwi accused of masterminding a $58 million investment scheme labelled a scam by Australian authorities has come under official censure in New Zealand.
Nelson resident David John Hobbs has been named by Australian authorities as the mastermind behind an alleged Ponzi scheme that fleeced pensioners.
The Australian Securities and Investment Commission (ASIC) said there was still $9m missing and "some money went to New Zealand accounts".
Investors in Ponzi schemes have interest paid with their own money or new money from subsequent investors, rather than profit earned.
ASIC named other individuals in the alleged scam, including Hobbs' wife Jacqueline and his sister-in-law Brenda.
It accused Hobbs, who has links to Australian motor racing royalty the Brock family, of misleading investors, illegally operating unregistered investment schemes and breaching his duty as a director.
ASIC was seeking unquantified financial penalties against Hobbs and his wife, and hoped to ban them both from managing companies or investment schemes in Australia again.
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A Kiwi accused of masterminding a $58 million investment scheme labelled a scam by Australian authorities has come under official censure in New Zealand.
Nelson resident David John Hobbs has been named by Australian authorities as the mastermind behind an alleged Ponzi scheme that fleeced pensioners.
The Australian Securities and Investment Commission (ASIC) said there was still $9m missing and "some money went to New Zealand accounts".
Investors in Ponzi schemes have interest paid with their own money or new money from subsequent investors, rather than profit earned.
ASIC named other individuals in the alleged scam, including Hobbs' wife Jacqueline and his sister-in-law Brenda.
It accused Hobbs, who has links to Australian motor racing royalty the Brock family, of misleading investors, illegally operating unregistered investment schemes and breaching his duty as a director.
ASIC was seeking unquantified financial penalties against Hobbs and his wife, and hoped to ban them both from managing companies or investment schemes in Australia again.
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