Clients of disgraced financial planner Barry Kloogh are only likely to get back 2.5c for every dollar invested.
Sunday, March 13th 2022, 7:51PM
Kloogh was convicted of running a Ponzi scheme and is currently serving out an eight year and 10 month year prison sentence.
In its latest six monthly liquidator’s report the Official Assignees says the return to investors is only likely to be 2.5 cents for every dollar invested.
While the Official Assignee is expecting to get $4555,442 from the sale of property associated with two trusts associated with Kloogh, investors are owed around $15 million.
It says an investigation and analysis of a property sold by two trusts associated with Kloogh have been completed. The funds from this sale remain frozen in a solicitor’s trust account.
“Documents have been filed in court to take a case of unjust enrichment by the two trusts and the interested parties have been served with the claim documents. The analysis shows that the majority of the funds that enabled the equity in the property came from funds stolen from investors and natural capital gains.
“On this basis the statement of claim also requests that the court make an order that if the funds are to be forwarded to the liquidator, or the Official Assignee in Kloogh’s bankruptcy, that they be distributed on a pari passu basis to the victims of the Ponzi scheme.”
The Official Assignee hopes that the matter will be settled without a formal court…
