The WWII vet, the Bitcoins and the missing pension

A tale of Lancaster bombers, Bitcoins, computer hacking, and ‘‘a load of codswallop’’ has played out in Hastings District Court.

Yesterday, Judge Bridget Mackintosh heard the police allegation that American migrant Ray Toler, 48, had taken United Kingdombased war pension funds held by a 95-year-old Havelock North war veteran and invested them into the electronic currency Bitcoins.

In late 2015, Geoff Bibby, a navigator in Lancaster bombers in World War II, wanted to transfer £10,000 (NZ$22,000) from his Royal Air Force (RAF) pension fund to New Zealand but was frustrated at the fees involved.

An acquaintance introduced him to Toler, who goes by the name ‘‘Mack’’.

Bibby told the court that Toler had said he could transfer the funds with no fees paid and they would be in Bibby’s account within eight working days.

But Toler denied that, saying he told Bibby about Bitcoins – a digital, web-based currency with no central authority – and that Bibby agreed to invest the funds in these.

Bibby said he had never agreed to invest the money and only wanted it transferred. He had trusted Toler so there was no written agreement involved.

‘‘I had absolutely no intention of investing the money. He mentioned something about Bitcoin, but I wasn’t interested. I thought it was a load of codswallop and I couldn’t understand it.’’

The funds were transferred into an account account held by UACNA – of which Toler was the sole director – in October 2015. Two months later, they were all spent.

Toler told the court he had held US$45,000 in Bitcoins and he had put some of this in Bibby’s name in exchange for the cash. He had every intention of making a big profit for Bibby, whom he considered a friend.

But after Bibby’s cash landed, Toler said his Bitcoin account was hacked. He and his associates haven’t been able to access their Bitcoin funds ever since.

When the money did not appear in Bibby’s account within eight working days, the 95-year-old began asking questions. ‘‘He came across with some weird and wonderful reasons why it was not there, but I never did get it back until a year later.’’

Late last year, Bibby and his family had had enough so they went to the police. Soon after, Toler gave Bibby a bank cheque for NZ$22,500.

Toler said he wished Bibby had come to him to sort the matter out first, but police prosecutor Tanya Ashfield said that’s exactly what Bibby had done, without success, for nearly a year.

Toler was charged with obtaining by deception and was in court for a judge-alone trial.

Judge Mackintosh said the Bitcoin scheme seemed very complex and there was a lot of well publicised scepticism about its integrity. She asked if Toler thought his actions were appropriate given Bibby’s age.

‘‘If it hadn’t been for the hack, then this would have all been beautiful,’’ he said.

Judge Mackintosh reserved her decision.