Operator of Kiwi Ponzi scheme sent to jail for six years

Chris Lee
Ponzi Scheme

A man who operated a fraudulent foreign exchange trading scheme, which wrongly took cash from investors, has been sent to jail for six years and three months.

Kelvin Clive Wood, who is aged 70 years old, was told today by the Auckland District Court that his crimes of “Obtaining by deception” and “Theft by person in a special relationship” were sufficient to land him with a custodial sentence.

Wood set up the fraud after his legitimate forex business started to see overall losses and lack of profits.

He continued to accept fresh funds, but he then passed these directly on to other clients to create the illusion that they were making profits.

However, they weren’t accruing the profits they were being told they had, and their gains were not real.

According to the New Zealand Serious Fraud Office, which prosecuted the case, Wood never informed his many clients that this was the case.

In total, he scammed people out of over $7 million over the course of a period stretching back until the first part of this decade.

He is believed to have taken investment cash from 18 individuals. This occurred over eight years, during which time he created false profit statements and distributed other inaccurate information in an attempt to throw his investors off course.

He operated two companies during his career both in legitimate and illegal forex trading. One was called Forex (NZ) Limited, and the other was called Forex NZ 2000 Limited.

He offered a range of products to the clients whom he later defrauded, including the purchasing of foreign currency, fixed interest term deposits and more.

It is understood from the Serious Fraud Office investigation that Wood’s clients invested with him “on the basis that their principal was not at risk”, suggesting that he may have given them guarantees as to the safety of their money.

According to a statement released by the Serious Fraud Office, which is responsible for looking into serious finance crime in the country, Wood committed a “breach of trust”.

“Mr Wood earned the trust of a group of investors through his personal and professional association with them”, said the Acting Director of the SFO, Rajesh Chhana.

“His breach of that trust is reflected in the sentence imposed today. The prosecution of such matters holds to account those who fail to conduct business in accordance with the expectations of a reputable market.”

Wood’s case has been long running. Back in October 2018, he told the Auckland District Court that he was not entering a plea against the two charges.

After this, he was remanded on bail.

In December 2018, he announced that he was pleading not guilty.

He later flip flopped again, however, and told a court in March 2019 that he was pleading guilty after all.

As part of his sentence, Wood will need to serve a basic minimum period of two years and 11 months. However, after this, he may be released depending on a decision made further down the line.

Chris Lee

Latest news

Olympic Legend Usain Bolt Lost $12m in Savings Scam
Usain Bolt loses $12m in an alleged investment scam Jamaican officials and the FBI are investigating investment manager Stocks and Securities Ltd Others are feared caught by the scheme Jamaican Olympic sprinter Usain Bolt has had a $12m savings and investment account he set up for his retirement wiped out. Read more
Phoney Pastors Caught Running $28m Church-Based Ponzi Scheme
Churchgoers targeted by scammers posing as pastors A total of $28m fraudulently taken from largely immigrant community Promises of ‘financial freedom through God’ undone by the fact the project was a massive Ponzi scheme Deception, distraction, and abuse of trust are standard tools of fraudsters. Read more

Safest Forex Brokers 2023

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 73 % of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
#5 Plus500 Logo79 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker

    Forex Fraud Certified Brokers

    BlackBull Markets Logo
    Forex.com Logo
    ATFX Logo
    IQ Option Logo
    skilling logo
    IC Markets Logo
    HYCM Logo
    AvaTrade logo
    City Index Logo
    XM Logo
    Exness Small Logo
    LegacyFX Small Logo
    OctaFX Logo