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05 October 2023

Barry Kloogh (Financial Planning Limited and Impact Enterprises Limited)

Background

This case concerns regulatory, enforcement, and insolvency actions taken in relation to Barry Kloogh and entities he controlled, following concerns about serious misconduct and potential fraud. The matter was led by the Financial Markets Authority (FMA), with subsequent involvement from the Serious Fraud Office (SFO) and the Official Assignee.

In May 2019, after an initial investigation, the FMA referred the case to the SFO. The SFO executed search warrants on Mr Kloogh’s home and business premises later that month, and its investigation has remained ongoing, with public requests for information.

In parallel, the FMA sought court intervention regarding two companies solely directed by Mr Kloogh—Impact Enterprises Limited and Financial Planning Limited. In July 2019, the Dunedin High Court granted interim liquidation, appointing interim liquidators from Deloitte to secure assets and investigate company affairs.

On 29 August 2019, the Dunedin High Court placed both companies into full liquidation, appointing the Official Assignee as liquidator. The liquidator was required to report to creditors and the Court on the companies’ affairs, liquidation proposals, and anticipated completion timelines, and to advise creditors of their rights, including the ability to appoint an alternative liquidator.

Also in September 2019, the FMA cancelled Mr Kloogh’s authorised financial adviser (AFA) authorisation under the Financial Advisers Act 2008, citing concerns about compliance with broker obligations. Mr Kloogh was notified of the proposed cancellation and did not oppose it.

In October 2019, the Official Assignee issued its first report for the liquidated companies. Subsequently, on 5 October 2023, the FMA published a further report titled “Lessons Learned from the Barry Kloogh Ponzi Scheme”. This report documents the FMA’s findings on the conduct investigated, the applicable law, the role of third parties who provided services to Mr Kloogh, and the regulatory actions taken as a result.

Overall, the case reflects a coordinated regulatory, enforcement, and insolvency response to serious concerns about financial misconduct, with ongoing criminal investigation and post‑event regulatory learning captured in the FMA’s 2023 report.

View SFO case webpage

Timeline

5 October 2023

The FMA issues a report following the case against Barry Kloogh.

This report concerns our enquiries into what services were provided to Kloogh by these third parties. The purpose of this report is to record the FMA’s views and findings on the conduct that was the subject of these enquiries, the law that applies to that conduct, and our actions as a result of our findings.

Download the Report entitled 'Lessons Learned from the Barry Kloogh Ponzi scheme (PDF) (591KB)

3 October 2019

The Official Assignee issued its first report for FPL & IEL.

September 2019

FMA cancels Barry Kloogh’s authorised financial adviser (AFA) authorisation, as a result of concerns regarding compliance with his broker obligations under the Financial Advisers Act 2008.

Mr Kloogh was notified of the FMA’s proposal to cancel his authorised financial adviser (AFA) authorisation, he chose not to oppose it.

The Serious Fraud Office (SFO) is investigating the activities of Mr Kloogh.

Two companies that Mr Kloogh was the sole director of - Impact Enterprises Limited and Financial Planning Limited - were placed into liquidation by the Dunedin High Court on 29 August 2019, following an application by the FMA. The Official Assignee was appointed as the liquidator.

Subject to any Court order to the contrary, the liquidator will, within 25 days of their appointment, send a report to the creditors (and Court) containing a statement of the companies’ affairs, proposals for conducting the liquidation, and, if practicable, the estimated date of its completion. It will also send a notice explaining the right of creditors to require the liquidator to call a meeting. At a creditors’ meeting, the creditors of the companies will be given the opportunity to appoint a liquidator of their own choosing.

August 2019

A hearing to place FPL and IEL into liquidation is set by the Court for 29 August.

If FPL and IEL are placed into liquidation on 29 August, liquidators will be appointed (replacing interim liquidators) and will have the power to deal with the companies’ assets and continue to investigate the affairs of the companies. They will provide their first report to investors and creditors within 25 working days and will seek to arrange a meeting of creditors within 30 working days.

29 August

The Dunedin High Court places FPL and IEL into liquidation. The Official Assignee is appointed as liquidator.

July 2019

The FMA applies to the Dunedin High Court to liquidate FPL and IEL and to have interim liquidators appointed. The Court grants interim liquidation on 17 July. Interim liquidators from Deloitte are appointed to maintain the assets and investigate the affairs of the companies.

May 2019

  • The FMA refers the case to the Serious Fraud Office (SFO) on 13 May, after conducting an initial investigation.
  • The SFO executes search warrants on Mr Kloogh’s home and business premises on 23 May.
  • The SFO investigation is ongoing and anyone with information can contact the SFO.