Auckland foreign exchange broker has been charged with fraud after 18 investors in an alleged Ponzi scheme lost at least $7 million.
Kelvin Clive Wood (69) entered no plea today at the Auckland District Court to charges of 'obtaining by deception' and 'theft by person in a special relationship' brought by the Serious Fraud Office (SFO).
The SFO alleges that the defendant operated a Ponzi scheme from January 2010 to May 2017 - using new investors' funds to pay other investors their reported gains, or to refund their principal investment.
His largest investors lost $1m each, the SFO says.
AdvertisementAdvertise with NZME.
Wood has been remanded on bail until his next appearance at the Auckland District Court on November 13.
Wood ran his alleged scam through two companies: Forex (NZ) and Forex NZ 2000.
The Financial Markets Authority referred the case to the SFO to investigate in mid-2017.