A former Citibank executive who it is claimed fell for a Nigerian investment scam will stand trial for allegedly defrauding his friends of millions to sink into the scheme.
Graeme Kenneth Rutherford, aged 56, now retired, pleaded not guilty to 21 fraud charges, a forgery charge and theft at a depositions
hearing before two JPs in the Auckland District Court.
He was committed for trial and remanded on bail until December 2.
Rutherford, a leading figure in the kiwifruit industry, began approaching friends about investment opportunities in 1997, according to written evidence given to the court yesterday.
A Serious Fraud Office investigator said six of them, all of whom had known Rutherford for at least 10 years, invested or lent him money. Most were told they were investing in European-based schemes.
Among them were a man Rutherford had known since primary school, John Molloy, an Auckland businessman, who lost about $2.5 million, and John Burton, toastmaster at Rutherford's wedding, who lost $670,000.
A Tauranga company director, Paul Adams, invested $2.68 million in what he thought were funds controlled through a European bank.
Rutherford sent about $250,000 via Western Union from Auckland to various individuals in Lagos, Nigeria, last year.
Mr Molloy said Rutherford told him early last year that he had been contacted by some Nigerians after retiring from Citibank and placing an ad in the Economist offering services as a financial adviser.
They wanted him to manage proceeds from a $US50 million (about $100 million) contract with the Nigerian National Petroleum Company.
Rutherford needed money to pay fees and taxes necessary to extract money from the deal and Mr Molloy lent him money, expecting repayments of $15.4 million - six times what he put in.
When the returns did not eventuate by June, Rutherford, who had recently been discharged from hospital, blamed his actions on strong medication which made him unable to tell right from wrong, Mr Molloy's evidence said.
The Serious Fraud Office was called in to investigate after deals went sour.
The National Bank is also out of pocket after a manager, Arthur Bell, gave Rutherford a $140,000 overdraft so he could send money to Nigeria.
"I was sceptical [but] sure with Rutherford's background and experience ... that he knew what he was doing," Mr Bell said.
Rutherford was declared bankrupt in May.
A former Citibank executive who it is claimed fell for a Nigerian investment scam will stand trial for allegedly defrauding his friends of millions to sink into the scheme.
Graeme Kenneth Rutherford, aged 56, now retired, pleaded not guilty to 21 fraud charges, a forgery charge and theft at a depositions
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