Liquidator: chasing gold trader "fruitless"

Grace Holdings NZ ran the gold and silver trading website BullionBuyer and was probed by the SFO after investors were told in 2012 they would not be getting their money back. Photo / Thinkstock

The liquidator of a gold trading website says chasing its convicted director for recovery may be a "fruitless exercise".

It was revealed this morning the head of the BullionBuyer website, which collapsed owing $2.7 million, has pleaded guilty to theft charges.

Robert Kairua, according to the Serious Fraud Office, made false statements in brochures regarding his experience and qualifications as well as the nature of the trading.

"He also failed to report losses suffered by investors, which created a misleading picture. This induced further investment and influenced investors to maintain their existing investments...Kairua misappropriated funds of approximately NZ$370,000 and invested funds contrary to investor instructions," the SFO said today.

Kairua's company, Grace Holdings NZ, ran the gold and silver trading website and was probed by the SFO when he told some investors in 2012 they would not be getting their money back.

The following year the SFO laid 17 Crimes Act charges of theft by a person in a special relationship and 12 charges of false statement by a promoter.

He has now has pleaded guilty to 13 of the 17 theft charges, and 9 of the 12 false statement charges. It is understood the SFO will seek to withdraw the remaining charges.
John Fraser, a BullionBuyer investor whose family lost more than $340,000, said he was pleased with the result.

"I'm very happy he's been prosecuted, I don't like the fact people have to go jail and don't get to see their families but I feel, though, for the amount of money he stole and lied to people about and mislead them that he deserves what he's going to get," Fraser said.

Kairua will be sentenced on July 3 at the Auckland District Court.

Fraser, an early complainant to the SFO about Kairua, said he was unimpressed with the lack of communication from the fraud-busting agency.

While Fraser said he would welcome getting some of his money back, Grace Holdings NZ's liquidator said he didn't believe Kairua had much in the way of assets.

The liquidator, Grant Reynolds, said a decision on any possible civil action would be made after the SFO case finished.

"We're playing it by ear," he said.

"Civil recovery is only as good as the assets that Mr Kairua has. As far as I'm aware he doesn't have a heck of a lot at the moment...the bottom line is it may well be a fruitless exercise," Reynolds said.