Kelly Simonz Tonkin faces five accusations filed by the Serious Fraud Office in connection with his collapsed Penrich investment fund. Photo / George Heard
Christchurch-based economists have been charged with fraud, persuading some of New Zealand’s wealthiest businessmen to invest tens of millions of dollars in Cayman Islands-based investment funds, Herald said. can.
52 was indicted against him by the Serious Fraud Office on March 26, according to court documents. He has not yet entered his plea and will then appear in court on May 27.
Alleged fraud is believed to be one of the largest of its type in New Zealand’s history, and the alleged victims included several rich people.
According to billing documents, SFO said investors in Tonkin’s Penrich Global Macro Fund were told in February last year that the scheme was worth $ 137.2 million, but in reality it’s only $ 20.7 million. Claims not.
Penrich collapsed suddenly in March 2020, and liquidators were appointed to its branches in London, the Cayman Islands and Christchurch. They told investors that a “significant discrepancy” was revealed. SFO immediately began investigating.
Tonkin was charged in Christchurch District Court by SFO Chief Investigator Willie Harris on five charges, including two false accounts. Two of making false statements to cause losses or induce new investors. 1 count forged a fake audit letter.
Late Monday night, Judge Jane McMaken issued an order to curb the names of “all plaintiffs, investment advisers and other stakeholders” until Tonkin’s next appearance.
When Herald visited his home in Christchurch yesterday, Tonkin said he was not in a position to comment. “I think I’m still at a stage where I can’t say anything,” he said.
Asked if he intends to defend the charges, Tonkin replied, “I haven’t reached that point yet.”
False accounting costs include false asset values and hidden cells in the fund’s “Monthly Value” spreadsheet for nearly a decade, from September 2012 to the sudden freeze of the fund in February 2020. It is related to Tonkin’s claim to be made.
For example, in September 2012 the fund reported a value of $ 13.6 million, which was claimed to have been inflated by the SFO by $ 10.6 million.
In 2016, the UK pension system withdrew from the fund “due to delays in providing audited accounts and the auditor’s failure to verify the valuation of the underlying asset,” in its annual report.
Chargesheets claim that many international clients have stopped receiving monthly investor statements during this period, suggesting that they have withdrawn their investments.
According to billing documents, on December 18, 2017, Tonkin prepared financial statements that misrepresented the fund’s position in 2016.
“The defendant misrepresented the Penrich Global Macro Fund’s total assets, total liabilities and net worth,” the SFO claims to be liable for counterfeiting. “Defendant forged the BDO Cayman Islands audit report and attached it to the financial statements.”
The false statement accusations are related to Tonkin’s statement to investors, including the swelling value of suspected fraud in their monthly account balances and the SFO’s far underestimation of risk and loss levels. Occurs related to both monthly updates regarding his trading activities that he claims to be.
For example, as SFO claims in July and August 2019, Tonkin told investors that trading in six currencies generated monthly returns ranging from a loss of 3.6% to a profit of 2.3%. Told. In fact, his trade went fraudulently, he lost at least 26.4% each month in each currency he traded, and posted a loss of 274.4% in August, including the US dollar.
But to make matters worse the following month, SFO claims that his US dollar transaction recorded a loss of 1575.5% in September 2019. This suggests a very risky risk leveraged transaction where you lose $ 15 for every $ 1 you invest. He told investors in Penrich’s corresponding “fund fact” statement that the month’s US dollar trading generated a 0.6% profit.
Growing up in Christchurch, Tonkin earned an honors degree in economics from the University of Canterbury and then made regular media appearances at the Treasury and Bankers Trust to provide expert economic and financial commentary.
He moved to London in 1999, worked for the unlucky investment bank Lehman Brothers, then started Penrich in 2004 and returned to New Zealand ten years later to become a board of education for Canterbury Football and Cashimia.
Until the collapse of Penrich Tonkin, it was well known and respected in the financial world.
All accusations he faces are sentenced to up to 10 years in prison.
SFO charges Christchurch economist on New Zealand’s largest fraud charge
SourceSFO charges Christchurch economist on New Zealand’s largest fraud charge