Allegations that up to eight million dollars are missing led Financial Markets Authority to freeze accounts controlled by Dunedin financial adviser Barry Kloogh.
Mr Kloogh is sole director and shareholder of Financial Planning Ltd and Impact Enterprises Ltd. FMA investigations found that of the $15.6 million client money placed with Mr Kloogh in the seven years up to April 2019, only $7.4 million could be accounted for. There was evidence of client money being used to pay Mr Kloogh’s personal expenses instead of being placed on investment as promised and of incoming client money being diverted in payments to other clients seeking repayment.
In the High Court, Associate judge Lester appointed interim liquidators to take control of all company assets. Financial Planning’s and Impact Enterprises’ bank accounts are frozen. A Serious Fraud Office investigation is underway.
Financial Markets Authority v. Financial Planning Ltd & Impact Enterprises Ltd – High Court (19.07.19)
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