13 October 2017

Fraud: R. v. Scott

Shane Richard Scott was sentenced to four years eight months jail for a Ponzi fraud after extracting $5.4 million from friends and acquaintances with false promises of high-value investments when socialising with them at Auckland rugby clubs and local bars.
Scott operated his fraud for over a decade with promises to thirteen victims of lucrative investments in property development, diamond trading, financing exports and imports, plus investments in off-shore businesses in Thailand and New Caledonia.  He pleaded guilty to 27 fraud charges.  A Serious Fraud Office investigation identified a net loss to victims of $2.1 million.  Some victims received full or partial repayment, often to add credence to the fiction of successful investments with an intent to encourage further investment.
The High Court was told Scott did not live an extravagant lifestyle.  The Ponzi fraud started after he incurred heavy personal losses in property and investment markets.
Scott has previous convictions: two for fraud in 2011 and 2012; one for perverting the course of justice in 2014.  Now aged sixty, Scott is in poor health with heart disease and arthritis.  He was bankrupted in 2015.  
R. v. Scott – High Court (13.10.17)

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