Some investors in a fraudulent $9 million fund run from Christchurch will this week get a letter they never wanted to see.
It will be telling them they must pay money back.
The bad news comes in the latest update to investors by the receivers of Arena Capital.
The company, trading as BlackfortFX, purported to run a spectacularly successful foreign exchange scheme controlled by expert analysts and traders.
The scheme ran for about a year and was put into receivership in May after intervention by the Financial Markets Authority. Clients were able to watch their investments double or triple over a few months and some withdrew large amounts.
The receivers, Neale Jackson and Grant Graham, of KordaMentha, found BlackfortFX had never traded in foreign exchange and any profits said to have been earned were fictitious.
In a second update to investors last week, the receivers warned investors they would receive statements this week showing how much they paid in and how much they received in withdrawals. They have identified 1100 individual clients who dealt with Arena.
For full story by Martin Van Beynen. Published 17/07/15, see: