'Sir Grant Cardno' ran a company which US regulators say was involved in a $550 million Ponzi scam. He claims to have a knighthood, yet he now works in a small-town petrol station.
Investors owed millions of dollars by a New Zealand man who claims to have a knighthood want to know why he appears to have gone unpunished, despite being charged with fraud in the United States.
A Herald investigation has revealed "Sir Grant Cardno" is working as a petrol station attendant
in Otaki, near Wellington, using the name "Tom".
The revelation has infuriated his victims, who cannot understand why he has not been brought to justice.
The Herald revealed last week that in 2005, Grant Thomas Cardno was named by the US Securities and Exchange Commission (SEC) as being involved in a "prime bank" Ponzi scheme involving up to US$390 million (nearly $550 million at today's exchange rates) from more than 1400 American investors.
He was served with a summons and an outline of the case against him, but didn't turn up in court to defend himself, and in November 2006 a Texas judge found against his company, Sovereign Capital Investments, by default.
The SEC said Sovereign was involved in "fraud, deceit and a deliberate or reckless disregard of regulatory requirements" which "directly or indirectly" resulted in substantial losses to investors.
The other defendants in the case, who were American, went to jail. But Mr Cardno, who was living in New Zealand at the time, appears to have avoided punishment.
Police sources said he would probably not be able to re-enter the US, but American officials would not necessarily alert New Zealand authorities.
Investors claim Mr Cardno also has many victims in New Zealand - including some who lost their life savings after investing in similar schemes.
One investor, who spoke on condition of anonymity, said he knew of at least 20 or 30 people from "all over the country" who invested millions of dollars in Sovereign and in another of Mr Cardno's companies, Liberty Establishment. Liberty was also named as a defendant in the US case.
Investors were lured by promises of high returns in overseas funds and claims that some of the proceeds would benefit charities, he said.
The Herald has obtained documents which show Mr Cardno said he was involved in a charity called the Hope Foundation, and claimed to have links to the "Millionaires of the World Club".
He also told investors he was planning an exclusive deal with Remuera couple Mike and Jackie Bradley, who are being investigated by the Serious Fraud Office after the collapse of their financial advisory business just before Christmas.
Investors were invited to seminars on Norfolk Island and at Wairakei. But their interest payments stopped coming and Mr Cardno disappeared.
The investor said he had bouts of depression as a result of losing so much money. He also knew of a Rotorua couple who had lost "everything", including their home.
"We just didn't know what to do because we lost hundreds of thousands of dollars, and some people lost their homes and businesses and it was just dreadful."
He was at a loss to explain why he had not gone to the police.
"You think, 'Okay, you've been duped, you've been done'. I can't see any way they're going to catch him."
Mr Cardno is believed to have had a home on Norfolk Island at the time. The house, designed by a New Zealand architect, was described by an Australian journalist as looking "straight out of the Hollywood Hills". It burnt down in mysterious circumstances in 2003.
He is now believed to be living at Makara Beach, north of Wellington.
He has previously referred to himself as "Sir Grant Cardno", and according to those who know him, has claimed to have had a connection with the "Knights of Malta".
Asked last week about his supposed knighthood, Mr Cardno told the Herald it was an informal arrangement from the "Queen of England", for his work in a Wellington soup kitchen.
He denied defrauding anyone, and said he was sick of being used by "other people". He said his lawyer was trying to overturn the fraud judgment against him in the US.
He declined to answer further questions, then pleaded for the information not to be published.
Mr Cardno is the brother-in-law of Destiny Church spokeswoman Janine Cardno, and has been involved in Destiny Church. He also frequently preached at a church near Makara.
In 2007, an anonymous Australian claimed on the Fraudwatchers website that he knew of people who had lost "many thousands of dollars" to Mr Cardno.
"And yes, he did pose as a 'Christian' while at the same time stole their money," the person claimed.
As a result of the Herald investigation, the Serious Fraud Office says it will look into investors' complaints.
A spokesman for the Securities Commission refused to say whether the commission had received any complaints about Mr Cardno.
"That might reveal what we may or may not have done," said spokesman Roger Marwick.
Ironically, it appears Mr Cardno left money behind when he disappeared several years ago.
According to Inland Revenue's "unclaimed money" website service, the tax department is holding $437.59 for Mr Cardno and his wife, Christine.
The service is for companies such as financial institutions and insurance companies who have been unable to find the owners of money left untouched for six or more years.
