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Man pleads not guilty to alleged $6m fraud

NZ Newswire logoNZ Newswire 7/02/2017
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A man has pleaded not guilty to accepting about $6 million from investors but then failing to invest it, in an alleged Ponzi scheme.

Shane Richard Scott, 60, first appeared in the Auckland District Court on January 17 and faces 29 charges of obtaining by deception, theft, using a document with intent to defraud and obtaining by false pretence.

No date for his trial has yet been set.

The Serious Fraud Office said Scott operated a Ponzi scheme by using money from new investors to pay returns to people who had already invested with him.

There was no evidence he ever invested his investors' money in legitimate businesses, the SFO said.

It said Scott attracted long term investors by claiming he was investing in Thailand, the diamond trade, South African trade deals and a chicken farm in New Caledonia.

From 2008 onwards, he also accepted payments from short term investors after promising high returns from property developments and non-existent exporting and importing deals, the SFO alleges.

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