Christchurch man Paul Hibbs accused of running Ponzi scheme

Paul Hibbs is due to reappear in the Christchurch District Court next month. Photo / 123RF

A Christchurch man accused of running a Ponzi scheme is facing fraud charges.

Paul Clifford Hibbs appeared in the Christchurch District Court today, according to the Serious Fraud Office.

Hibbs, 48, is facing charges alleging false statement by a promoter, theft by a person in a special relationship, using forged documents and forgery. He is due to reappear in court next month.

"The SFO alleges that from around 2008, legitimate businesses owned and operated by Mr Hibbs, Cameron Gladstone Investments Limited and Hansa Limited, developed into a Ponzi scheme," the SFO said today.

"It is alleged that Mr Hibbs provided clients with false reports in relation to their investments - for example, that he sold investments without clients' knowledge, that he falsely reported the proceeds of sales were held in cash management accounts or that investments had been purchased," the prosecutor said.

"Further, it is alleged that Mr Hibbs used investors' funds for purposes other than required, for example, using clients' funds to make payments of capital or investment returns to other clients," the SFO said.

SFO director Julie Read said the SFO alleged that Hibbs "went to some lengths to ensure that information provided to investors looked genuine".

"Investors who suspected that that their money was being misappropriated took the right action in reporting the matter to the FMA who referred the matter to the SFO."