A court has heard how investors in a get rich quick scheme lost hundreds of thousands of dollars after their money, promised to be used to trade on the Australian Stock Exchange, disappeared.
Mark James Whelan has denied 10 charges of theft and making a false statement as a promoter brought by the Serious Fraud Office.
The Auckland District Court was told on Wednesday how people were persuaded to invest in Mr Whelan's company, Global Futures Trading, including a farmer who put in $1 million.
They thought their money was going to another company to trade in options in Australia, but those funds were never traded.
The Crown prosecutor said when the company ran out of money, Mr Whelan tried to secure a $20 million loan with a US-based firm, using the farmer's $1 million as an advance fee.
Mr Whelan is the second man facing charges over the SFO's investigation into Derivatek, an options trading company.
Derivatek director Gregory Alan Arnott recently pleaded guilty to similar charges.
The court was told that Mr Whelan set up Global Futures Trading for the purpose of enlisting investors to invest funds through Mr Arnott and Derivatek.