Ponzi perpetrator Barry Kloogh not forced to pay reparations

Barry Kloogh, the failed financial adviser who stole more than $15 million from clients in a Ponzi scheme, will not have to pay reparations, the High Court has ruled.

Kloogh was sentenced in the Dunedin District Court in July 2020, to serve eight years and 10 months jail time, with a minimum non-parole period of five years and four months, but later appealed.

In an appeal court decision released by Justice Rachel Dunningham on December 18, 2020, the reparation order was quashed.

Justice Dunningham’s decision took into account the widespread harm that Kloogh’s con had brought to his victims. Part of her statement read, “It is clear from the material before the court that Mr Kloogh’s fraud has had a profound effect on his victims, the vast majority of whom are elderly and reliant on their investments to support them in retirement.

“There was abuse of a position of trust both as a financial adviser but also, in many cases, as a friend. The victims were vulnerable and there are clear instances of Mr Kloogh exploiting them because they did vest high levels of trust in him.”

Regarding the reparations, Justice Dunningham stated, “In my view, the order for reparation was inappropriate when Mr Kloogh was to spend more than five years in prison given the minimum period of imprisonment imposed, and where all parties accepted it was highly unlikely that funds would be available at any point in the future. Indeed, I consider to make the order is to raise false hope in the many victims of Mr Kloogh’s dishonesty.”

Comments from our readers

On 20 January 2021 at 7:01 pm Richard Pykett said:

What the actual f*ck? Did the money just vapourise? Not a bad tax free yearly income - $15.7m /5.3. Its a bloody joke - just like the other convicted massive fraudster we have as a neighbour. Far from a destitute existence. Crime does pay.

On 20 January 2021 at 9:32 pm Murray Weatherston said:

I didn't understand Richards coomment. When I went back to the story on my PC, I found an ad covered up part of the text where the Judge explained her reasoning.
"Regarding the reparations, Justice Dunningham stated, “In my view, the order for reparation was inappropriate when Mr Kloogh was to spend more than five years in prison given the minimum period of imprisonment imposed, and where all parties accepted it was highly unlikely that funds would be available at any point in the future. Indeed, I consider to make the order is to raise false hope in the many victims of Mr Kloogh’s dishonesty.”

Judge's decision seems common sense to me. There is no money to be found to fund reparations.

On 20 January 2021 at 11:47 pm Richard Pykett said:

I was able to read the Judge's comment Murray, but where did the $15.7m go? Did he managed to shift all the assets like our prick neighbour?

On 25 January 2021 at 10:15 am JPHale said:

The guess is the money has been moved in ways the authorities can't track or access. And even if the authorities knew where it was BK would be unlikely to provide judicial access to it in the future once released for the order to be useful.

One of the consequences of the legal system we have around protecting assets, the Blue Chip fiasco had similar aspects.

Richard's comments on time vs return appear quite accurate...

On 27 January 2021 at 8:31 am henry Filth said:

One assumes that there is evidence to support the Judges observation that "it was highly unlikely that funds would be available"

Given that various parties in the Ross case had money taken from them retrospectively, one might imagine that the same rules may apply in this case.

Or has the following of the money been less assiduous?

Ponzi perpetrator Barry Kloogh not forced to pay reparations

The former financial adviser who stole $15.7 million from his clients will not be forced to pay over $5 million in reparations.

Tuesday, January 12th 2021, 6:02AM 5 Comments

Comments from our readers

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