A company – up until November last year chaired by former Progressive MP Matt Robson – is at the centre of a Serious Fraud Office investigation for allegedly failing to correctly account to investors for funds received.
A company – up until November last year chaired by former Progressive MP Matt Robson – is at the centre of a Serious Fraud Office investigation for allegedly failing to correctly account to investors for funds received.
The SFO said it has opened an investigation into the affairs of the WSD group of companies, executing search warrants at WSD Group’s premises at 475 Mount Eden Road and a private residence in Glendowie earlier today.
The investigation involves WSD Global Markets Limited, WSD Financial (NZ) Limited, WSD Financial Group Limited and others.
WSD Global Markets Limited is accredited as an NZX Futures and Option Firm. None of the other entities are accredited or regulated by NZX.
WSD was, until recently, controlled by former Wall Street Banking Corporation Director, Riaz Patel.
Mr Robson was chairman of Auckland-based WSD Global Markets Limited until his resignation in November 2009.
SFO chief executive Adam Feeley said the investigation had been coordinated closely with the NZX and Securities Commission.
Mr Feeley said WSD had actively promoted New Zealand as part of its marketing strategy to investors.
“Most of the investors in WSD are overseas residents, so it is important that the SFO does all it can to protect New Zealand’s reputation amongst both domestic and international investors as a well-regulated and safe place to invest.”
The investigation centers on allegations WSD has failed to correctly account to investors for funds received.
In 2008 the Cook Islands Financial Supervisory Commission placed WSBC in statutory management and revoked the banking licence with effect from 31 December 2009.
Mr Feeley said, “There is a misconception that the SFO has previously investigated WSBC. In 2008 we simply to provided assistance to the foreign authorities who were investigating WSBC. The file was closed once that role had been fulfilled.”
He added that the investigation was the twelfth major investigation commenced by the SFO this financial year.
“We are well ahead of the expected caseload for the year to date, with a total of 20 cases involving losses of over $630 million under investigation, and a further 32 cases involving losses over $235 million being prosecuted.”
