Serious Fraud Office
Grace Holdings NZ Limited Director Kairuaiti Tangata Oropai Robert Kairua (55) pleaded guilty in the Auckland District Court to charges brought by the Serious Fraud Office (SFO).
SFO filed the charges in the court in January 2013 and included 17 Crimes Act charges of theft by a person in a special relationship and 12 charges of false statement by a promoter.
Mr Kairua pleaded guilty to 13 of the 17 theft charges, and nine of the 12 false statement charges. He will be sentenced on July 3, 2015.
Grace NZ traded under the name ‘BullionBuyer,’ with trading of gold and other precious metals on behalf of investors as its core business.
False statements
At the time of its collapse, Grace NZ reportedly held investor funds of approximately $2.7 million. Mr Kairua made false statements in brochures regarding his experience and qualifications, the nature of the trading, and the insurance and storage of physical metals.
He also failed to report losses suffered by investors, which created a misleading picture. This induced further investment and influenced investors to maintain their existing investments with Grace NZ.
Mr Kairua misappropriated funds of approximately NZ$370,000 and invested funds contrary to investor instructions.
SFO Chief Executive Julie Read said that the SFO commends investors who stepped forward and contacted the agency.
“Precious metals trading and other highly speculative investments represent a significant risk to retail investors. Generally, such investors rely entirely on the integrity and expertise of their advisers. If investor trust is abused, the SFO considers it important to ensure those advisers are brought to justice to protect New Zealand’s reputation as a safe place to invest and do business,” she said.
Mr Kairua is to be sentenced on 3 July 2015.
Serious Fraud Office Press Statement
