Jail bed cutbacks wrong: Bridges
More New Zealand investors have come forward fearing they have been caught up in suspected global investment scam. The Herald reported earlier this month that authorities are looking into the apparently sophisticated ruse that has allegedly duped Kiwis out of their life savings.
Manfred Bredl, 63, plunged $525,000 into what he thought was a ground-breaking carbon emissions scheme, reportedly backed by the Mexican Government.
But Bredl believed he, and three other New Zealanders that he knew of, had been duped by individuals behind two dummy companies — FM Wealth Management Ltd, purportedly based in the Cayman Islands, and private share company Eco-Plant Corporation.
Since the Herald reported his case on June 19, others have spoken out about dealings with the charismatic, smooth-talking operators behind the alleged sophisticated con.
One investor claims FM Wealth Management conned about $85,000 out of him during 12 months of interactions with the “brilliant, highly knowledgeable” and “smooth, confident talker” man known only as “Bruce Matthews”.
Paul Mackenzie avoided the suspected trap, wary of get-rich schemes.
He said FM Wealth Management approached him recently about a new company merger to release a medicinal marijuana product.
A British-sounding man “hounded” him for weeks, Mackenzie said, with promises to send out portfolios.
While Mackenzie thought their websites checked out, he blew them off saying he wasn’t interested in getrich-quick schemes “as I am aware of the many pitfalls”.
One Bay of Plenty retiree wasn’t so lucky and got sucked in.
He invested $60,000 after being cold-called by a “Bruce Matthews” reportedly calling on behalf of FM Wealth Management.
“My story is almost word for word with what you printed about Mr Bredl,” said the 74-year-old who wanted to remain anonymous.
“My wife and I thought he was absolutely genuine until your article came up. [His wife] read it that morning and just said, ‘S***, look at this’. I just couldn’t believe it.”
After being lured to invest US$5000 ($7400) into a supposed leukaemia cure company, the man put more into EcoPlant shares, wired to a Mexican bank account.
He expected a $200,000 windfall this month but he’s “written off” his money.
“It’s a very big loss. We’re retired and this was a good part of our nest egg. It’s going to make things very tight for us over the next few years,” said the man, who wants to file a complaint with police.
New Zealand Police refuse to confirm whether they are investigating FM Wealth Management.
The Cayman Islands Monetary Authority has blacklisted FM Wealth Management and, in December, New Zealand’s Financial Markets Authority (FMA) issued a warning for Kiwi investors to steer clear of the company.
The companies, which reportedly have offices in the Cayman Islands, Toronto, and Buenos Aires, have not responded to phone calls or emails from the Herald.
The newspaper’s investigations last month revealed that Kiwis were losing up to $500m annually to international scammers and the number of reported incidents had risen sharply this year.
Bronwyn Groot, fraud education manager at the Commission for Financial Capability, said Kiwis need to be wary of cold callers.
“Almost every day, people contact me saying they have lost money through investments scams and sadly, $500,000 is small,” she said.
Internet safety group Netsafe said New Zealanders should be “extremely wary of any unexpected investment offers” and always deal with companies that are authorised to operate in New Zealand.
HWatch the video at nzherald.co.nz The latest advice the Government has received on the prison population is that over the next 10 years it will increase by 4100 places, advice it had when it made its decision to scale back the Waikeria expansion.
The projection is more than 2000 extra prisoners on the previous year’s, prompting National leader Simon Bridges to describe the decision to scale back Waikeria plans as “egregious”.
“The Government has sat on a report for over six months showing the prison population is forecast to reach 14,400, up from the previous forecast of 12,200, yet in that time made the decision to reduce the planned number of beds at Waikeria Prison from 1500 to just 600,” Bridges said.
“Reducing the number of new beds at Waikeria Prison by almost 1000 shows a disconnect with reality and disregard for the safety of New Zealanders,” he said.
The National Government had used the Ministry of Justice’s 2016 annual projections in making its decision to expand Waikeria to 1500.
“New Zealand will be hundreds, perhaps thousands, of prison beds short which means the Government won’t be able to put away all the serious offenders it needs to.”
The latest projection was made last October, the month the LabourNew Zealand First Coalition was formed. The projections do not factor in policy announcements made since then.
The total projections are of people held on remand and those serving sentences.
The 10-year projection is that by 2027, there will be 14,400 prisoners.
New Zealand will be hundreds, perhaps thousands, of prison beds short.
Simon Bridges, National leader
That is 4100 more than the 2017 muster of 10,300 and a big jump on 2016’s 10-year projection for an increase of 2350 extra prisoners.
The latest projection is well in excess of the 2015 projection which estimated there would an increase of only 950 between 2015 and 2025.
The Government announced its plans for Waikeria in June, which include a 500-bed high security and a 100-bed mental health facility for prisoners — to be completed by 2022.
National had been planning a 1500-bed rebuild, with the capacity to hold 2000 prisoners.
In making the announcement, Corrections Minister Kelvin Davis said the easy thing to do would have been to build an American-style mega-prison. “It’s just not the right thing to do.”
He said smaller prisons were more effective in providing rehabilitation.
As well as providing 600 new beds at Waikeria, he would be adding 400 extra beds across the prison network.
In the meantime, by the end of next year 976 rapid-build temporary structures would be added to five prisons: 244 to Rolleston Prison; 122 to Tongariro Prison; 244 to Rimutaka; 122 to Christchurch Women’s Prison; and 244 to Christchurch Men’s Prison.
The Government has also budgeted $57.6 million over four years to provide housing and support for 300 people in response to many prisoners being ready for release but having no suitable housing for them.
The Government has set a target to reduce the prison population by 30 per cent over 15 years.