Gold trader pleads guilty to fraud charges
The SFO released a statement this morning confirming the outcome in response to NBR questions as to the status of the case which goes back to 2012.
Auckland gold trader and company director Robert Kairua, 55, has pleaded guilty in the Auckland District Court to numerous charges laid by the Serious Fraud Office and has been convicted.
The SFO released a statement this morning confirming the outcome in response to NBR questions as to the status of the case which goes back to 2012.
Kairua is the director of Grace Holdings NZ Ltd, which traded under the name BullionBuyer.
The SFO launched an investigation into the company in 2012, about the time Grace Holdings was placed into liquidation.
At the time of its collapse, Grace NZ reportedly held investor funds of approximately $2.7 million. The SFO said 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 misappropriated funds of approximately $370,000 and invested funds contrary to investor instructions, the SFO said.
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 with Grace NZ.
Kairua has pleaded guilty to 13 of 17 theft charges, and nine of 12 false statement charges. He is to be sentenced on July 3.
SFO director Julie Read says investors who stepped forward and contacted the agency are to be commended.
“Precious metals trading and other highly speculative investments represent a significant risk to retail investors. Generally, such investors rely entirely on the integrity and expertise of their advisers. If investor trust is abused, the SFO considers it important to ensure those advisers are brought to justice to protect New Zealand’s reputation as a safe place to invest and do business.”
Duncan Bridgeman
Wed, 24 Jun 2015
Wed, 24 Jun 2015
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Gold trader pleads guilty to fraud charges
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