Kloogh no longer a financial adviser
Financial adviser Barry Kloogh has had his authorisation cancelled by the Financial Markets Authority.
Thursday, September 5th 2019, 6:00AM
Barry Kloogh
Kloogh’s offices were raided by the Serious Fraud Office in May.
Court documents show investors put nearly $16 million into his companies between 2012 and 2019 but authorities are still trying to locate $8.2 million in investments.
The FMA said it had cancelled his AFA authorisation as a result of concerns regarding compliance with his Financial Advisers Act broker obligations.
The cancellation will take effect upon the expiration of his suspension as an AFA on September 5.
Kloogh was notified of the FMA’s proposal to cancel his authorisation, he chose not to oppose it.
Two of his businesses, Impact Enterprises Limited and Financial Planning Limited, of which he was the sole director, were placed into liquidation by the Dunedin High Court on August 29. They have liabilities of more than $12.5 million.
"Subject to any court order to the contrary, the liquidator will, within 25 days of their appointment, send a report to the creditors and court containing a statement of the companies’ affairs, proposals for conducting the liquidation, and, if practicable, the estimated date of its completion. It will also send a notice explaining the right of creditors to require the liquidator to call a meeting. At a creditors’ meeting, the creditors of the companies will be given the opportunity to appoint a liquidator of their own choosing," the FMA said in a statement.
In a previous court judgment, Associate Judge Dale Lester said it appeared substantial amounts of money had been used for his own personal spending.
The judgment shows one client invested $101,000 with Kloogh, who spent $35,000 of the money on his credit card and personal debt, used a further $9,000 to pay other investors, and invested just $41,000.
The client went on to pay regular monthly amounts totalling just over $54,000 and deposited another lump sum of $37,000 in 2016.
Of that, $33,700 was paid to other investors and $2,000 used for credit card payments.
When the client asked for $100,000 back for house renovations, the money was drip-fed, withdrawn from other investors' accounts.
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