Funds: New Zealand couple charged with NZD 15 million ponzi scheme

The couple were back in court yesterday but were, once again, released on bail without a plea being taken. The NZ SFO is continuing to gather evidence, the charges so far related to a fraction of what the SFO say is the full damage - 24 investors invested a total of NZD14,423,702 plus AUD841,303 (NZD1.1 million) between April 2003 and November 2009.

The couple's home has been sold raising some NZD4 million - but it was mortgaged to the hilt with a combination of bank lending and a charge to secure their legal fees. There will be little or nothing left for creditors of the companies they ran: B’On Financial Services Ltd was the main company but there were also B'On Financial Services NZ Limited, Bradley O'Neill Financial Planners Limited, Bradley O'Neill Financial Services Limited and Rosehip Nominees Limited (of which Jacqueline Bradley was not an officer).

The couple put the companies into liquidation in late 2009 but the liquidator found holes in the accounts and reported the case for prosecution. It ended up with the SFO due to its size and complexity.

The charges are breach of fiduciary duty and uttering a false document.

According to the SFO, Michael and Jacqueline Bradley established B’On Financial Services Ltd on 20 April 1998 as joint directors and equal shareholders. They acted as financial advisers and investment managers. Prior to this they operated under a number of different entities. Mr and Mrs Bradley put the company into voluntary liquidation on 22 December 2009. As a result of an extensive investigation the SFO now alleges that 24 investors invested a total of NZD14,423,702.18 plus AUD841,303.00 between 28 April 2003 and 30 November 2009.

The SFO says that clients who invested with the Bradleys did not have their funds invested in any meaningful way; instead, the money was primarily used to repay previous investors but was also dispersed on business running costs and personal spending.