News | Law and Order
13 Dec 2017 7:04
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Days of Xmas
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Law and Order

    Man jailed over $5.4m Ponzi scheme

    A man who ran a $5.4 million Ponzi scheme that sucked in friends and investors has been jailed for more than four years.


    A man who admitted to running a $5.4 million Ponzi scheme that sucked in friends and associates has been jailed for four years and eight months.

    Shane Richard Scott told investors he was investing in diamonds, South African trade deals and a chicken farm in New Caledonia - but there was no evidence any of the plans were legitimate, the Serious Fraud Office says.

    On Friday, he was handed the prison sentence in the High Court at Auckland, having in September pleaded guilty to 27 deception and fraud charges.

    The SFO said Scott was operating a Ponzi scheme, using money obtained from new investors to pay returns to previous investors.

    "Inevitably, the scheme falls over when the new investors' money is insufficient to pay out 'investments' that have fallen due," SFO director Julie Read said.

    The watchdog said Scott attracted long term investors by claiming he was investing in Thailand, the diamond trade, South Africa and New Caledonia.

    From 2008 onwards he also accepted payments from short-term investors after promising high returns from property developments and non-existent exporting and importing deals, it said.

    Friends and close associates were among those duped, Ms Read said, but a few simple checks and advice from the SFO, Financial Markets Authority and Commerce Commission could have saved their money.

    "We do want to reiterate the importance of checking that investment information is legitimate, whether you are investing with friends, associates or strangers," she said.


    NZN




    © 2017 NZN, NZCity


     Other Law and Order News
     12 Dec: PNG deputy electoral commissioner Simon Sinai arrested and charged with corruption
     12 Dec: Man jailed for preying on children
     12 Dec: Only call in an emergency, Police urge
     12 Dec: Ambris fractures forearm, out of NZ tour
     12 Dec: Kiwi Bamber signs with Supercars team
     12 Dec: NZ police tip off saves abused kids
     12 Dec: Auckland post shop robbed at gunpoint
     Top Stories

    RUGBY RUGBY
    Pulver 'delivered' for Australian rugby More...


    BUSINESS BUSINESS
    Kiwi up vs Aussie on weak biz confidence More...



     Today's News

    Rugby League:
    Stronger Nth Qld pack to be NRL 'targets' 6:27

    International:
    Donald Trump's Jerusalem move ends US role in peace process, Palestinian leader Hanan Ashrawi says 4:37

    Politics:
    PNG's life-saving church rural health services face closure after months without government funding 22:47

    Soccer:
    Socceroos coach must be Aussie: Merrick 21:57

    Rugby League:
    RLPA calls for review of third party deals 21:17

    International:
    Chinese 'rooftopper' Wu Yongning plunges to his death from 62-storey tower as $20,000 stunt goes wrong 20:17

    Entertainment:
    Ruby Rose has "always wanted" children 20:16

    Law and Order:
    PNG deputy electoral commissioner Simon Sinai arrested and charged with corruption 19:57

    Soccer:
    Injuries to test Glory's A-League depth 19:47

    Entertainment:
    Anastacia is "single with a smile" 19:46


     News Search






    Power Search


    © 2017 New Zealand City Ltd