Kloogh sentencing held to July

THE sentencing for disgraced financial adviser Barry Kloogh has been pushed back until the end of July and is scheduled to take an entire day.

The 57yearold, who defrauded investors out of more than $15 million through a Ponzi scheme, appeared before the Dunedin District Court by video link yesterday.

While Kloogh had pleaded guilty to the bulk of the Serious Fraud Office’s charges laid against him, one remained.

At a hearing two weeks ago, he denied that charge and elected to go to a judgealone trial.

However, that outlying charge was dismissed by Judge Michael Crosbie yesterday after the Crown offered no evidence.

Kloogh’s sentencing was scheduled to take place on May 14 but because of the number of victims — 126, made up of individuals and groups — that was not feasible.

The court heard yesterday more than half of that number had requested the chance to sit down and confront the defendant in the form of a restorativejustice conference.

Some of these may take place in the form of group meetings, while others wanted the chance to sit down with Kloogh alone.

Judge Michael Crosbie said the restorativejustice process was “a matter of paramount importance to court”.

Several of those victims had already indicated they wanted to read their victimimpact statement’s at Kloogh’s sentencing.

Huge numbers are expected to attend the hearing, and Judge Crosbie suggested two courtrooms may be made available with proceedings beamed from one into the other.

Victims who could not make it on the day would be able to view the sentencing by videolink, the court heard.

When Kloogh’s firms were placed into liquidation, he had 2000 active clients.

The liquidator’s first report, released last October, said evidence showed the companies operated as a Ponzi scheme controlled by the defendant.

The Serious Fraud Office and the Official Assignee who is handling the liquidation process have each made major efforts to contact all affected investors.

The court heard yesterday there were still a couple of victims who were yet to be located.