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.
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.