“..Investors owed millions of dollars by a New Zealand man who claims to have a knighthood want to know why he appears to have gone unpunished ..
.. despite being charged with fraud in the United States.
A Herald investigation has revealed “Sir Grant Cardno” is working as a petrol station attendant in Otaki, near Wellington ..
.. using the name “Tom”.
The revelation has infuriated his victims, who cannot understand why he has not been brought to justice.
The Herald revealed last week that in 2005, Grant Thomas Cardno was named by the US Securities and Exchange Commission (SEC) as being involved in a “prime bank” Ponzi scheme involving up to US$390 million (nearly $550 million at today’s exchange rates) …
.. from more than 1400 American investors.
He was served with a summons and an outline of the case against him, but didn’t turn up in court to defend himself, and in November 2006 a Texas judge found against his company, Sovereign Capital Investments, by default.
The SEC said Sovereign was involved in “fraud, deceit and a deliberate or reckless disregard of regulatory requirements” which “directly or indirectly” resulted in substantial losses to investors.
The other defendants in the case, who were American, went to jail. But Mr Cardno, who was living in New Zealand at the time, appears to have avoided punishment.
Police sources said he would probably not be able to re-enter the US, but American officials would not necessarily alert New Zealand authorities.
Investors claim Mr Cardno also has many victims in New Zealand – including some who lost their life savings after investing in similar schemes.
One investor, who spoke on condition of anonymity, said he knew of at least 20 or 30 people from “all over the country” who invested millions of dollars in Sovereign and in another of Mr Cardno’s companies, Liberty Establishment.
Liberty was also named as a defendant in the US case.
Investors were lured by promises of high returns in overseas funds .. and claims that some of the proceeds would benefit charities, he said..”
go to source/story>>Fury over $550 million scam – National – NZ Herald News
