New Zealand Ponzi scheme mastermind pleads guilty to theft, forgery charges

Maria Nikolova

Paul Clifford Hibbs has pleaded guilty to all of the charges, including ‘False statement by promoter’, ‘Theft by person in special relationship’, ‘Using forged documents’ and ‘Forgery’.

A followup to FinanceFeeds’ earlier report on the court proceedings against Ponzi scheme mastermind Paul Clifford Hibbs…

The New Zealand Serious Fraud Office (SFO) announced today that Mr Hibbs has appeared in the Christchurch District Court today and pleaded guilty in a Serious Fraud Office (SFO) prosecution.

Paul Clifford Hibbs faced Crime Act charges of ‘False statement by promoter’, ‘Theft by person in special relationship’, ‘Using forged documents’ and ‘Forgery’. He has pleaded guilty to all of those charges and has been remanded in custody until sentencing.

As previously reported, Mr Hibbs owned and operated Cameron Gladstone Investments Limited and Hansa Limited. Under the allegations, from around 2008, Cameron Gladstone Investments Limited and Hansa Limited, developed into a Ponzi scheme. Mr Hibbs provided clients with false reports with regard to their investments – for example, he sold investments without clients’ knowledge, he falsely reported the proceeds of sales were held in cash management accounts or investments had been purchased. The SFO alleges that Mr Hibbs used investors’ funds for purposes other than required – he used clients’ funds to make payments of capital or investment returns to other clients, a typical feature of Ponzi schemes.

The legal action comes after investors who suspected their money was misappropriated reported the matter to the New Zealand Financial Markets Authority (FMA). Last year, FMA published a notice about investigating Hansa and Mr Hibbs and asked for more information from investors.

According to media reports, at least $20 million were missing from Hansa’s accounts. Both Cameron Gladstone Investments Limited and Hansa Limited have been put into liquidation.

According to the first report by the liquidators of Hansa, the company failed to invest and manage the funds in line with the agreements signed with investors. Instead the company was run as a Ponzi scheme and and Cameron Gladstone Investments Limited was also involved in the fraud.

Mr Hibbs will reappear for sentencing in the Christchurch District Court on February 7, 2018.

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

<