The liquidator's first report, released yesterday, said more than 170 investors were owed a total of about $12million to $14million they had placed with Mr Kloogh's firms, Financial Planning Ltd and Impact Enterprises Ltd."The evidence shows that the companies have operated as a Ponzi scheme controlled by Mr Kloogh," the report said. "The liquidator is proceeding on the assumption that Mr Kloogh has withheld the true situation from many of his clients." "For each investor, an investment that appears in the records in their name, may actually be purchased with another investor's funds or a mixture of investors' funds." Sums invested range up to the hundreds of thousands of dollars, and some families had life savings with Mr Kloogh. In September, Mr Kloogh answered a knock at the door at a Dunedin address, but only to tell the ODT to leave.

Source: Otago Daily Times October 03, 2019 15:22 UTC