FX Trader Pleads Not Guilty to $7 Million Ponzi Scheme in NZ
- The SFO alleges that the trader created a Ponzi scheme to offset the net trading losses of his FX brokerage.
The Serious Fraud Office (SFO) of New Zealand revealed this Friday that a foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) trader has pleaded not guilty to defrauding his clients of more than $7 million in a Ponzi scheme.
On Thursday, at the Auckland District Court, Kelvin Clive Wood pleaded not guilty to two charges - ‘Obtaining by deception’ and ‘Theft by person in a special relationship’ - which were brought by the SFO.
The SFO, which is responsible for investigating and prosecuting serious or complex financial crime, alleges that the 69-year-old created a Ponzi scheme to offset the net trading losses of his forex brokerage.
In New Zealand, Wood operated forex and trading services through Forex (NZ) Limited and Forex NZ 2000 Limited. Customers gave him their money for fixed interest term deposits, buying foreign currency, Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term, and general investment purposes.
According to the charges, the SFO believes Wood was using the money from new investors to pay the gains owed to other investors. Furthermore, he was using the money to refund principal investment without the permission from the investors or their knowledge of his actions.
Case review hearing set for March 2019
The SFO said that it believes Wood managed to lose more than $7 million of investment principal which belonged to 18 investors over eight years. Following his not guilty plea, he has been remanded on bail, with a case review hearing set for March 20, 2019, at the Auckland District Court.
Established in 1990 under the Serious Fraud Office Act, the SFO is the leading law enforcement agency in the country for complex financial crime, which includes bribery and corruption.
The organization has two operational teams. The first is its evaluation and intelligence team and the second is its investigations team. The case was originally referred to the SFO for investigation by New Zealand’s Finance Markets Authority (FMA) in May 2017.
The Serious Fraud Office (SFO) of New Zealand revealed this Friday that a foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) trader has pleaded not guilty to defrauding his clients of more than $7 million in a Ponzi scheme.
On Thursday, at the Auckland District Court, Kelvin Clive Wood pleaded not guilty to two charges - ‘Obtaining by deception’ and ‘Theft by person in a special relationship’ - which were brought by the SFO.
The SFO, which is responsible for investigating and prosecuting serious or complex financial crime, alleges that the 69-year-old created a Ponzi scheme to offset the net trading losses of his forex brokerage.
In New Zealand, Wood operated forex and trading services through Forex (NZ) Limited and Forex NZ 2000 Limited. Customers gave him their money for fixed interest term deposits, buying foreign currency, Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term, and general investment purposes.
According to the charges, the SFO believes Wood was using the money from new investors to pay the gains owed to other investors. Furthermore, he was using the money to refund principal investment without the permission from the investors or their knowledge of his actions.
Case review hearing set for March 2019
The SFO said that it believes Wood managed to lose more than $7 million of investment principal which belonged to 18 investors over eight years. Following his not guilty plea, he has been remanded on bail, with a case review hearing set for March 20, 2019, at the Auckland District Court.
Established in 1990 under the Serious Fraud Office Act, the SFO is the leading law enforcement agency in the country for complex financial crime, which includes bribery and corruption.
The organization has two operational teams. The first is its evaluation and intelligence team and the second is its investigations team. The case was originally referred to the SFO for investigation by New Zealand’s Finance Markets Authority (FMA) in May 2017.