Ponzi scheme mastermind appears in court in New Zealand

Maria Nikolova

New Zealand’s SFO alleges that since 2008 Paul Clifford Hibbs has operated Cameron Gladstone Investments Limited and Hansa Limited as Ponzi schemes.

counting house

The story around Cameron Gladstone Investments Limited and Hansa Limited, the investment businesses run by Paul Clifford Hibbs, is starting to unravel, as Mr Hibbs appeared in the Christchurch District Court on Tuesday in relation to a New Zealand Serious Fraud Office (SFO) prosecution.

The New Zealand SFO has announced that Mr Hibbs faces Crime Act charges of ‘False statement by promoter’, ‘Theft by person in special relationship’, ‘Using forged documents’ and ‘Forgery’. Each of these counts carries a maximum penalty of 10 years in prison.

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 instance, 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 claims 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 in the Christchurch District Court on July 12, 2017.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<