'Bogus' gold trader jailed
Robert Kairua, 55, was sentenced to three years nine months' jail for causing losses of about $1.5 million.
An Auckland gold trader who caused losses of about $1.5 million says he was “well and truly duped,” but is today off to jail for what prosecutors say was a “bogus, fraudulent scheme” from the start.
Robert Kairua, 55, was the director of Grace Holdings NZ, which traded under the name BullionBuyer and collapsed in 2012 reportedly holding investor funds of about $2.7 million.
Last week, the Serious Fraud Office released a statement in response to NBR questions confirming Kairua had pleaded guilty to and was convicted of numerous charges laid by it.
The SFO launched an investigation into the company in 2012, about the time Grace Holdings was placed into liquidation.
Today, Judge Christopher Field sentenced Kairua to three years and nine months’ jail in the Auckland District Court.
Kairua had pleaded guilty to 13 of 17 theft charges, and nine of 12 false statement charges.
Kairua represented himself in court, where he claimed there should be two others facing the charges with him.
He was referring to former director Simon Bratley and its former trader Elijah Geldman, who is currently in prison in the United States for an unrelated fraud.
“None of this was intended,” he says.
“I trusted people, just like investors trusted me.”
He says he is not a con man and was “well and truly” duped by Mr Geldman.
But prosecutor Nick Williams says he cannot get away from the fact he pleaded guilty to the charges.
“This, in fact, was a bogus, fraudulent scheme from the outset.”
Mr Williams says Kairua made false statements in brochures regarding his experience and qualifications, the nature of the trading, and the insurance and storage of physical metals.
Kairua took $151,000 in commission, stole $370,000 and caused trading losses of about $1.2 million, with elements of a Ponzi scheme to the offending.
Judge Field says Kairua’s offending was a deliberate and direct breach of trust.
“It may be that you were duped… but you became responsible for the running of the company.”
The judge says there was no prospect of home detention.
Hamish McNicol
Fri, 03 Jul 2015
Fri, 03 Jul 2015
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'Bogus' gold trader jailed
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