An American evangelist has been found guilty of fleecing New Zealanders out of nearly $5 million.
Minister, preacher and motivational speaker Donald Eugene Allen, 58, was convicted yesterday along with Murray Clive Christie, 45, Dianne Ruth Christie, 43, and Stuart Alfred Buckland of conspiring to defraud investors with promises of huge
returns.
The scam was described by Serious Fraud Office prosecutor Paul Davison, QC, at the Auckland District Court as a "cynically dishonest use of religion".
The four were remanded in custody for sentencing in June.
Allen was also found guilty of a charge of fraud.
Another man, Paul Eugene Palmer, who was named in the indictment, is currently serving nine years for tax fraud in the States.
Over nine weeks the jury heard of how some 400 New Zealand investors were ripped off to the tune of $4.8 million.
They were lured with promises of 15 per cent interest compounding monthly, equal to an unrealistic 431 per cent per annum.
Investors pumped $9.6 million into Investors International, of which $4.6 million was repaid, leaving them millions out of pocket.
Much of the money was said to have gone to pay Palmer and Allen's personal expenses including $1.2 million in withdrawals from ATM machines and $168,000 spent on motor cycles, including Harley Davidsons.
Investors attended seminars in Fiji, Malaysia and Indonesia.
Allen, a founder of the Good Fight of Faith Church, used his motivational preaching skills to work the crowd.
Palmer would then follow, emphasising the high rewards and opportunities available to those who shared his knowledge about international finance.
There were dark hints about government conspiracies, lack of freedom and the huge wealth that could be made from investments.
"Acting on the representations and promises made by Palmer and Allen of high rates of interest, and as to the security and safety of their money, a large number of people in New Zealand were induced into investing and entrusting considerable sums of money with them," Mr Davison said.
The Christies and Buckland were said to have encouraged prospective investors.
The jury deliberated for more than three days.
