$5.4m Ponzi admitted
Shane Scott admitted in the High Court today that he had defrauded his friends and associates.
He first appeared in the Auckland District Court on 17 January and initially entered a plea of not guilty but today entered guilty pleas to four charges of obtaining by deception, 20 charges of theft by person in special relationship, one charge of using document with intent to and two charges of obtaining by false pretense.
Scott was operating a Ponzi scheme, using money obtained from new investors to pay returns to previous investors. There was no direct evidence of any legitimate investments.
Scott had some friends and associates who invested with him over a number of years and some who were relatively short-term. The long-term investors believed he had been working on various overseas investments. The short-term investors believed they would receive high returns in relation to property developments and exporting/importing deals.
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