A liquidator has provided a report detailing the activities of Barry Kloogh who plead guilty to charges in March. The liquidator examined over 100,000 transactions as well as bank transactions dating back to 2012 to understand if stolen funds were used to make purchases on behalf of other clients. In cases like this, false profits could be clawed back. Although the investigation found that a small group of clients were not affected by Kloogh’s actions, the liquidator found that clients that had paid by cheque were given false account details.
“The liquidator reviewed more than 100,000 transactions, plus bank transactions for Kloogh’s companies accounts, going back to 2012.
They found “a small number” of clients were not affected by Kloogh’s fraud. Their names had been provided to investigators by Kloogh, and their accounts were released to them once the information was confirmed as being correct.
However, the much larger task of reviewing transactions involving defrauded clients remains. That was because funds paid by cheque had been diverted, or given false bank account details.
Investigators were trying to find instances where stolen funds from Impact Enterprises Ltd were used to purchase other assets in another client’s name.”
“The liquidator noted any “fictitious profits” – not the underlying capital investment – were liable to be clawed back for the benefit of other investors.
The liquidator is set to investigate further but has found that clients weren’t given access to the platform Kloogh had in place to provide an overview of client investments. Instead, the platform was used to track what Kloogh had stolen. Kloogh is set to be sentenced on 31 July 2020.
“The report also notes Kloogh’s clients were not given access to a platform designed to provide an overview of their investments.
It appeared Kloogh used the platform to keep track of ‘’what he had stolen from his clients in order to evade detection’’.
Kloogh will be sentenced on July 31.” Click here to read more
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