The Dunedin businessman was jailed for eight years and 10 months earlier this year after he admitted his financial advice empire had actually been a long-running Ponzi scheme.
Financial authorities are still investigating his now liquidated companies, but know at least 80 people had upwards of a combined $12million stolen from them.
This week in the High Court at Dunedin, Kloogh appealed his sentence, a minimum period of imprisonment of five years and four months, and a $5million reparation order imposed in the Dunedin District Court by Judge Michael Crosbie.
Yesterday, Justice Rachel Dunningham dismissed both aspects of Kloogh’s sentence appeal but quashed the reparation order.
All parties accepted it was unlikely funds would be available anytime soon to repay those people, she said.
There was "no realistic chance" of Kloogh paying back the $5million, so the order should be quashed, she said.
Karyn Churcher, whose dying husband was promised by Kloogh that he would look after his wife, had almost $700,000 stolen from her and her family.
She was at the appeal, and told the ODT she was glad Justice Dunningham had upheld a sentence she had felt was fair.
"In her judgement she mentioned the abuse of trust and that the offending was highly premeditated and sophisticated," Ms Churcher said.
"For us as the investors this was the case and it is important for this to be acknowledged again by another judge for the victims.
"A change to the sentence may have caused more distress than there already is."
Other investors, who cannot be named, said although they knew their hopes of recovering any of their money was slim, the reparation order had represented some small chance.
"It’s just another kick in the guts, really," one said.
Investors echoed Ms Churcher in their happiness that Kloogh’s prison sentence had not been reduced.
"He should serve every minute of his sentence and then some," an investor said.
At Tuesday’s appeal hearing in the High Court at Dunedin Kloogh’s counsel, Sarah Saunderson-Warner, argued her client should have received a greater discount on his sentence for prior good character, attendance at restorative justice meetings and assistance to the Serious Fraud Office.
She also argued Judge Crosbie had set his starting point for Kloogh’s sentence too high compared with similar cases, and that the minimum imprisonment period was likewise too high.
Justice Dunningham said the sentences imposed by Judge Crosbie were both within the ranges he could have appropriately have set.
Ms Churcher said those who had invested with Kloogh were honest and hard-working, and had been conned by someone who was neither.
"Hopefully, the Kloogh case will change the way banks deal with their customers and investment platforms and trustees report to clients.
"If we had known what we know now, things could have been different."
