Kloogh scheduled in court tomorrow

Barry Kloogh
Barry Kloogh
Failed financial adviser Barry Kloogh is scheduled to appear in the Dunedin District Court tomorrow, the Otago Daily Times understands.

Mr Kloogh has been under Serious Fraud Office investigation since May last year, after concerns were raised about the conduct of his companies, Financial Planning Ltd and Impact Enterprises Ltd.

Shortly after the SFO announced its investigation both companies were placed in liquidation; the first report by the Official Assignee estimated more than 170 clients were owed between $12 million and $14 million.

The SFO would not comment on Mr Kloogh’s case yesterday.

However, sources have told the ODT that Mr Kloogh is scheduled to appear in court tomorrow morning.

The ODT understands Mr Kloogh will face multiple charges laid by the SFO; several of his former clients are expected to attend the hearing.

Mr Kloogh is believed to be on the registrar’s list.

This may mean the matter is remanded to another hearing date, without the defendant necessarily coming before a judge.

Clients have expressed frustration at how long the SFO investigation has taken, but the Official Assignee’s report offers a glimpse of the case’s complexity.

‘‘The scale of co-mingling and funds misapplied is not known at this stage and will be the subject of investigation,’’ it said.

‘‘This will involve the liquidator having to assess hundreds, potentially thousands of transactions to verify claims by investors to assets currently held with the custodian on trust.

‘‘The liquidator has already been provided with records of a substantial number of investors and banking records of the companies going back to 2012.’’

A group of prominent Dunedin lawyers and advisers last year formed a group which is helping former clients of Mr Kloogh on a pro bono basis.

Spokesman Geoff Mirkin said if Mr Kloogh was indeed being charged, investors would be relieved.

‘‘People are tired of not being able to tell their stories,’’ he said.

‘‘This will give them some level of comfort, that they can get on with doing victim impact statements, ... they can finally talk about how this has impacted on their lives.’’

Court proceedings would allow the Financial Markets Authority and the Official Assignee to go ahead with measures they promised to take to help investors affected by the company liquidations, Mr Mirkin said.

mike.houlahan@odt.co.nz

 

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