The Serious Fraud Office is investigating a Porirua-based investment firm that purported to invest up $500,000 funds for clients, but allegedly never did so.
The white-collar crime investigator today launched a part 2 investigation into Options Trading and Investments NZ after the firm's liquidator lodged a complaint earlier this year.
The SFO can compel attendance to be interviewed in a part 2 investigation where the director has reasonable grounds to believe serious fraud may have been committed. A part 1 probe is where the director suspects an investigation may uncover serious fraud, and can require the release of documents
Options Trading and Investments NZ was incorporated in 2015 by Tiavare Richard Curtis Joseph, also known as Ritchie Wineera.
He is company’s sole director and shareholder and was a respected figure in the Porirua community – investigators are understood to believe he is also a bishop of the Mormon church.
A report by liquidator, Damien Grant of Waterstone Insolvency found investors were “induced to place money” with the company to have their funds managed.
“Our initial investigations indicate that this may not have happened,” he wrote.
“There appear to be no assets inside the company, and it appears that new funds were being used to pay any interest and capital to previous investors.”
One investor was reportedly told their money would be invested in gold, oil and other commodities.
Grant told BusinessDesk in August last year investors had each put up to six-figure sums into the investment firm, which was not registered or licensed to provide financial services.
By June this year, Grant had received $464,285 worth of unsecured claims from investors and the company’s director failed to comply with the investigation.
The SFO said it won't comment while the investigation is underway, and encouraged anyone who had dealt with Options Trading or Joseph to contact them.
Joseph told BusinessDesk last August that funds were invested as promised in contracts.
