The latest liquidator’s report into the Ponzi scheme architect’s failed companies says that the estimated scale of his theft from his customers now appears to exceed $16million — an increase of $1m from the last such report, issued six months ago.
"The information already gathered by the interim liquidators regarding victims’ losses is being reviewed along with any other investors that we are aware of and a formal vetting and acceptance of those claims in the liquidation is under way," the Official Assignee’s report said.
The confirmed increase in how much Kloogh is estimated to have stolen has had a knock-on effect on the minuscule amount of money his investors — who placed their money with him in good faith given he was an accredited financial adviser — could receive.
In March liquidators hoped that they might be paid 2.5c in the dollar: that has now been revised to 2c in the dollar.
Although they would have feared as much, the report also had bad news for the estimated 21 unsecured creditors of Kloogh’s companies — firms, former employees, Inland Revenue and the Financial Markers Authority — which are owed $117,000.
As the funds recovered — $430,564 from the sale of Kloogh’s sole property — were never assets of the company and were to go to the investors, there was no dividend to unsecured creditors in the liquidation.
In 2020, Kloogh was jailed for eight years, 10 months after pleading guilty to stealing millions of dollars from clients, many of whom had regarded him as a personal friend.
The true extent of how much Kloogh stole, and from whom, will likely never be known: lawyers investigating the case believe that many will not have come forward, either due to embarrassment or because they have already written their losses off.
Most of the identified victims were couples or families, investing for their retirement or securing the future of their children. They had been enticed by the fact that Kloogh did not promise outlandish returns, rather that their money would be invested sensibly in secured investments or blue chip stocks.
What they did not know was that Kloogh had operated a Ponzi scheme for years, robbing new clients to pay off existing ones.
"The vetting of claims will take some time to complete," the official assignee said.
"There are over 160 potential claimants, of which the liquidators have information from around 100. Much of that information is incomplete as many victims had dealings with Kloogh over a long period of time.
"Every claim must be reviewed, vetted and confirmed before a calculation of the amount each will receive, therefore it is not possible to indicate a date of completion at this time."
