Gold trader sentenced

Kairuaiti Tangata Oropai Robert Kairua (Robert Kairua) has been sentenced to three years and nine months’ imprisonment in the Auckland District Court today.

The Director of Grace Holdings NZ Limited (Grace NZ) pleaded guilty to 13 theft charges and nine false statement charges laid by the Serious Fraud Office (SFO). The SFO withdrew four theft charges and three false statement charges.

Grace NZ traded under the name BullionBuyer; its core business was said to be the trading of gold and other precious metal on behalf of investors.

Mr Kairua made false statements in brochures regarding his experience and qualifications, the nature of the trading and the insurance and storage of physical metals. At the time of its collapse, Grace NZ purportedly held investor funds of approximately $2.7 million. In fact, only $70,000 in cash was held and Grace NZ held no gold or other precious metal reserves. The majority of funds received by Mr Kairua were lost in trading – a fact which was not reported to investors thereby inducing them to maintain their investments. Mr Kairua also misappropriated funds of approximately NZ$370,000 which were spent on business and personal expenses and which were also used to repay other investors to maintain the appearance of a successful business. Some funds were also invested contrary to investor instructions.

SFO Director, Julie Read said the sentence reflects the serious abuse of trust on the part of Mr Kairua.

“The SFO protects New Zealand’s reputation as a safe place to invest and do business by ensuring that those who don’t comply with their obligations when entrusted with other people’s money are brought to justice. Investors should consider carefully whether they can afford to lose their funds when contemplating an investment which promises returns substantially in excess of those to be found elsewhere. It should always be remembered that with the promise of high returns comes high risk and, sometimes, outright fraud.”

ENDS

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