Official Assignee appointed liquidator of companies associated with Barry Kloogh
On Thursday 29 August 2019 the Official Assignee for New Zealand was appointed liquidator of Financial Planning Limited (FPL) and Impact Enterprises Limited (IEL). The application was made by the Financial Markets Authority (FMA).
The application was made at the conclusion of an interim liquidation, undertaken by Vivien Judith Madsen-Ries and David Sean Webb, of Deloitte. The FMA sought the appointment of interim liquidators by the court to maintain the assets of the companies, pending the hearing of the liquidation application. Lester J at Dunedin High Court made the order to place the companies into full liquidation after considering the interim liquidators’ report.
The liquidation follows a Serious Fraud Office (SFO) investigation into the activities of Dunedin-based financial adviser Barry Kloogh who is the director and 100% shareholder of both companies.
The major issue facing the liquidators is the apparent flow of funds through the company bank accounts after investment advice by Mr Kloogh. It appears that due process was not followed by Mr Kloogh, in that client funds which ought to have gone directly to the recommended investments were instead directed into the company bank accounts.
The liquidator is aware of a core fund of security and investment assets held by FNZ Custodian Limited as bare trustee for the investors and reported through the reporting platform known as “Consilium”. It is believed at this stage that the fund holds approximately $2.9m, however investors contacted by the interim liquidators have indicated that the funds should be nearer $15m.
The liquidator will endeavour to realise the assets of the companies, and is currently pursuing some assets as identified by the interim liquidators in their report. The Liquidator is also gathering further information on the investments made by clients of Mr Kloogh as director of FPL and IEL. What action will be required and how this will be dealt with is still being reviewed as further information and understanding of the situation is obtained.
The first report to creditors will be available by 3 October 2019. This can be accessed by viewing the documents attached to the company Financial Planning Limited 1563676 (In liquidation) at the www.companies.govt.nz(external link)
Anyone with information or questions about this matter should contact the liquidators by phone: 0508 467 658 or by email to: firstname.lastname@example.org.