Liquidators reveal scale of Arena Capital/Blackfort FX ponzi 20 Oct 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Minister looks at court systems in Europe and UK News
- Knowles quits as CEO of KiwiBank Business
- NZ manufacturing activity reaches highest since 04 Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
- NZ hiring expectations up as recession fades Recruitment
- New Zealand’s net migrant inflow surges Migration
Thursday 20 October 2016 05:29 PM
Liquidators reports reveal scale of Arena Capital/Blackfort FX ponzi fraud
By Edwin Mitson
Oct. 20 (BusinessDesk) - Documents from the receivers and liquidators of Arena Capital, whose director Jimmie McNicholl has been charged with running a ponzi scheme, show it received more than $9 million from clients even though no forex trading was undertaken.
In their first report as receivers of Arena Capital on July 24, 2015, KordaMentha state that clients placed money with the company on the understanding they would profit from trading in the foreign exchange markets. They note: "We are advised that many clients were provided with statements which purported to report the client had earned profits. Our investigations so far suggest that the profits reported were fictitious."
Arena, which traded as BlackfortFX, had approximately 1,100 clients and there was a shortfall of $7 million in capital contributions owed to clients. It had $728,000 in its bank account when it was frozen by the authorities and four vehicles, including three luxury vehicles, were seized.
While Jimmie McNicholl is named as the sole director, a Lance Ryan is also described as having a "key involvement" in the business.
McNicholl appeared in the Christchurch District Court on Thursday facing one charge under the Crimes Act of 'obtaining by deception" while the Serious Fraud Office said another person charged is yet to appear. Both defendants will appear in the Christchurch District Court on Nov. 7.
In its next report, in November 2015, KordaMentha estimated that Arena owed $6.96 million to 925 clients. It said 96 individuals had received more money from Arena than they had invested, and owed $2.48 million which the liquidators were seeking repayment of. It also noted that Arena paid commission to individuals who introduced clients to Arena, and it was seeking the repayment of this money.
In a recent update in August, the liquidator said a total $650,000 had been recovered. Negotiations are continuing and the liquidators said "we intend to take legal action against debtor clients who are not engaging constructively in settlement discussions."
KordaMentha said it has also recovered $1.18 million from the sale of a section in Coatesville, Auckland and recovered a Christchurch section bought in May 2015 with $253,000 of Arena's money.
It had settled a claim against the director of Arena and a party associated with him but did not give further details.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more