Dunedin fraudster Barry Kloogh owes persons more than $12m – his suppliers have just $13k

Barry Kloogh. Photo / ODT

Profits from a property sale could perhaps offer some crumbs of ease to out-of-pocket victims of falsified financial adviser Barry Kloogh.

The latest liquidator’s description, released yesterday, revealed new information on just how empty Kloogh’s accounts were being being when the Serious Fraud Office raided his High St office associated with Dunedin home in May last year.

About $13, five remains in the funds in hand of most his two companies, Impact Associations Ltd and Financial Planning Limited, with about $20, 000 you owe to preferential creditors — staff claims and the Inland Revenue Dept.

Staring at a complete loss are Kloogh’s general with trade creditors, who are owed $112, 956, and the luckless investors who Kloogh conned — the file estimates they lost more than $12 million.

From July, Kloogh was imprisoned suitable for eight years and 10 months concerned with multiple theft and fraud expense, following an earlier guilty plea.

He has since put an appeal against the length of well recognized sentence, which is due to be discovered later this month.

The official assignee said there has not been any evidence found to date within transactions that might result in the recovery with funds.

“The liquidator is undertaking an marketing tracing exercise to determine how ripped off funds were channelled through the company [FPL] and other people and how they were used.

“This exercise involves an array of bank accounts and credit cards and postulates this company, the related liquidation for IEL and the director’s personal zynga poker chips, over many years. ”

The sole pool of money liquidators have found so far is about $450, 500, which the ODT understands are the results of the sale of a house in Earnscleugh owned by two trusts to do with Kloogh.

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Those types of funds have been frozen in a solicitor’s trust account until investigators untangle their status.

“These funds do not directly are based on the company, but the liquidator in his perform as official assignee in Kloogh’s bankruptcy is investigating how each of these funds originated and what steps tends to be taken in dealing with them. ”

Liquidators have by now estimated investor losses as being at any rate $15. 7m, but are still to be able to understand the depth and breadth at Kloogh’s offending.

“It is estimated that the liquidation will take some time to complete due to the complexnesses and the effect of the fraud.

“It is not imaginable to indicate a date of completion at the present time. ”

Kloogh conned hundreds of unsuspecting clients, who had no idea their trusted financial authority had in fact been running a Ponzi scheme for years.

“In the previous report we figured that where an external asset was found in investors’ accounts, it symbolize funds stolen by the director, Kloogh, and was not indicative of monies held which might be available either compared to the investors or to the liquidator.

“The liquidator always remains of the same view. ”

Both IEL — an insurer which existed purely for Kloogh to use its bank accounts for dupery — and FPL were conduits for Kloogh’s criminal activity, each of our liquidators said.

Funds stolen by Kloogh designed savings invested to care for the right disabled child, and the estate connected with man who died from melanoma just days before the SFO close Kloogh’s businesses.

The liquidators estimated their outlay so far as just over $93, 000.