14 Dec 2012

Trader jailed for defrauding investors

12:21 pm on 14 December 2012

A foreign exchange trader has been sentenced to just over two years in prison for running Ponzi-style schemes targeting his friends and family.

Christopher Collecutt, 57, was sentenced in the Auckland District Court on Friday.

Collecutt had pleaded guilty to three charges under the Crimes Act, including theft by person in special relationship, obtaining by deception and false statement by promoter.

He was convicted of defrauding 59 investors, mostly family and friends, who collectively lost about $1.5 million.

Serious Fraud Office acting chief executive Simon McArly said it was the second sentencing this week for Ponzi-type schemes.

He urged potential investors to get things in writing and to always be wary of investing based on personal relationships rather than verifiable facts.

The investigation into Collecutt began in August last year and charges were laid in May.