10 May 2018

Chch man admits helping set up $8.3m Ponzi scheme

3:44 pm on 10 May 2018

A Christchurch man has pleaded guilty to his part in a sophisticated Ponzi scheme which masqueraded as a foreign exchange brokerage.

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Photo: 123RF

Jimmie McNicholl admitted obtaining financial services provider registration by deception for his company Arena Capital Limited, which traded as BlackfortFX.

The registration gave the impression the company was legitimate, but instead the Ponzi scheme defrauded about 900 people of $8.3 million.

The Serious Fraud Office has also charged Lance Ryan, also know as Lance Thompson, in relation to the fraud.

He has pleaded guilty to four charges, but maintains his innocence in regards to obtaining registration for the company.

The pair will be sentenced in the Christchurch District Court next month.