The disgraced Dunedin financial adviser who defrauded investors of more than $15 million is appealing his sentence.
Barry Kloogh in court on 12 March 2020 Photo: RNZ / Tess Brunton
Barry Kloogh ran a Ponzi scheme, stealing from his clients and squandering their savings and investments on a luxury lifestyle.
The 57-year-old's offending spanned 25 years and was only uncovered when the Serious Fraud Office investigated his companies, Financial Planning Limited and Impact Enterprises Limited, in May last year.
The two companies were liquidated only months later leaving no meaningful way of repaying his victims.
In July he was jailed for eight years and 10 months with a non-parole period of more than five years and a reparation order of $5m was imposed.
Many victims told the court of Kloogh grooming them through friendship before taking all he could, including KiwiSaver retirement funds.
One woman said Kloogh stole more than $700,000 from her and her dying husband.
When her husband was diagnosed with cancer, Kloogh encouraged them to withdraw his life insurance early and claimed he would use it to provide for the family once the man died.
His wife told the court Kloogh's manipulation included contacting her husband while he was receiving chemotherapy.
It was only after the man's death Kloogh's deception was discovered.
Another victim said he had to return to work despite fighting cancer due to the fraud.
Kloogh was jailed for six years on the lead charge of theft by a person in a special relationship and a cumulative sentence of two years and 10 months jail was imposed on a charge of false accounting.
Kloogh received concurrent prison sentences for his nine other charges.
The Court of Appeal confirmed it received an appeal from Kloogh but it was referred to the High Court.
RNZ understands the appeal relates to the sentence and the minimum non-parole period.
His lawyer at sentencing, Sarah Saunderson-Warner, refused to comment or even confirm if Kloogh remained a client when contacted.
Geoff Mirkin, who represented a group of defrauded investors pro bono, said he had not been alerted to the appeal, but he imagined investors would be frustrated by the development.
The matter is set down for December.