The Auckland District Court sentenced on July 3, 2015 Kairuaiti Tangata Oropai Robert Kairua (Robert Kairua) to three years and nine months’ imprisonment.
The Director of Grace Holdings NZ Limited (Grace NZ) pleaded guilty to 13 theft charges and nine false statement charges laid by the Serious Fraud Office (SFO). The SFO withdrew four theft charges and three false statement charges.
Grace NZ traded under the name BullionBuyer; its core business was said to be the trading of gold and other precious metal on behalf of investors.
Mr Kairua made false statements in brochures regarding his experience and qualifications, the nature of the trading and the insurance and storage of physical metals.
Nothing precious
At the time of its collapse, Grace NZ purportedly held investor funds of approximately $2.7 million. The Company held only $70,000 in cash and had no gold or other precious metal reserves. A majority of funds received by Mr Kairua were lost in trading – a fact which was not reported to investors thereby inducing them to maintain their investments.
Mr Kairua also misappropriated funds of approximately NZ$370,000 which were spent on business and personal expenses and which were also used to repay other investors to maintain the appearance of a successful business. Some funds were also invested contrary to investor instructions.
Trust abused
SFO Chief Executive Julie Read said that the sentence reflected the serious abuse of trust on the part of Mr Kairua.
“The SFO protects New Zealand’s reputation as a safe place to invest and do business by ensuring that those who do not comply with their obligations when entrusted with other people’s money are brought to justice. Investors should consider carefully whether they can afford to lose their funds when contemplating an investment which promises returns substantially in excess of those to be found elsewhere. It should always be remembered that with the promise of high returns comes high risk and, sometimes, outright fraud,” she said.
A Serious Fraud Office Press Release
