‘Ponzi’ a shock

High-profile businessman Craig Stobo says he was ‘‘completely unaware’’ he was named as managing director of a company now thought to be a ponzi scheme.

He also said he has had no association with the man under investigation since the mid-2000s, and was only alerted to the ‘‘identity theft’’ by regulators.

In early July, the Serious Fraud Office (SFO) and Financial Markets Authority ( FMA) said they were investigating Paul Clifford Hibbs and his company, Hansa.

A couple, John Docherty and Sue Evans, said on Wednesday they had been left stranded after allegedly being swindled out of $650,000 by Hibbs. ‘‘We’re past the tears,’’ Docherty said. ‘‘It’s affected our lives hugely.’’

He said about 30 investors were at a meeting held last week, where they were told there appeared to be no money left, Hibbs was not registered as a financial adviser, and that a prosecution was likely.

The FMA and SFO gave the meeting a full description of what a ponzi was, and indicated there was a possibility this was what Hansa might be, Docherty said.

Regulators would not comment on the claims while the investigation is ongoing.

It has now emerged Hansa’s prospectus said Stobo was the company’s managing director.

Stobo has worked as a diplomat for the Australian and New Zealand governments, is an investment banker and economist, and in 2004 chaired the government review of the taxation of investment income.

But yesterday Stobo said he was ‘‘completely unaware’’ his name had been used in the prospectus until regulators contacted him six months ago.

Stobo said he never had any relationship with Hansa.

In the mid-2000s he and Hibbs had sought opportunities in the market, he said, but they came to nothing. ‘‘I moved on, but obviously he didn’t.’’

Stobo said he had not had any contact with Hibbs since. Hibbs has not responded to requests for comment. –Fairfax NZ