4 Sep 2012

Ponzi-style scheme use to defraud investors

7:25 pm on 4 September 2012

A former financial adviser has been found guilty of defrauding $15 million from investors in a Ponzi-style scheme.

The Serious Fraud Office took the case against Jacqui Bradley after receiving complaints from investors.

Nick Paterson, the SFO's general manager for fraud and corruption, says investors believed they were investing in safe stocks and government bonds when the money was being used to pay back other debts.

"Ultimately, these operations must fall apart - there simply aren't enough investors to maintain it forever. (Convicted US businessman) Bernie Madoff, of course, is the ultimate in Ponzi schemes and ... they're just destined to fail."

Bradley appeared in the Auckland District Court this week and was remanded in custody for sentencing on 19 October.