8 February 2017

Man allegedly deceived friends and associates in Ponzi

Shane Richard Scott (60), has pleaded not guilty today to Crimes Act charges filed by the Serious Fraud Office (SFO).

Mr Scott first appeared in the Auckland District Court on 17 January and was given interim name suppression which lapsed today.

Mr Scott faces four charges of ‘Obtaining by deception’, 23 charges of ‘Theft by person in special relationship’, one charge of ‘Using document with intent to defraud’ (for offending prior to 1 October 2003) and two charges of ‘Obtaining by false pretence’ (for offending prior to 1 October 2003).

The SFO alleges that Mr Scott was operating a Ponzi scheme, using money obtained from new investors to pay returns to previous investors. The SFO alleges there was no direct evidence of any legitimate investments in this case.

It is believed that Mr Scott had some investors who invested with him over a number of years and some who were relatively short term. The long term investors became involved with Mr Scott on the understanding that their money was being invested in brokering deals in Thailand, as well as some additional miscellaneous investments, including diamond trade, South African trade deals, and an investment in a chicken farm in New Caledonia. The short term investors became involved with Mr Scott from approximately 2008 onwards. Mr Scott received payments from them after promising high returns in relation to supposed property developments and non-existent exporting/importing deals.

The total of Mr Scott’s offending is alleged to involve approximately $6 million.

SFO Director, Julie Read said, “People who are thinking about investing need to do their own due diligence and get appropriate professional advice before committing any money. This simple step might just save an investor or multiple investors from being deceived by false promises of high returns.”

Mr Scott was remanded on bail. A date for trial is yet to be set.

ENDS

© Scoop Media