Brian Gaynor: Fraudsters take big interest in NZ

Paul Palmer, email, September 24, 1999

New Zealand has become a target for international fraudsters and their investment scams. These include false invoicing, Nigerian scams, bogus lottery prizes, property rip-offs, dubious foreign currency seminars, get-rich conferences, bucket-shop share offers and high-yield investment proposals.

High-yield investment frauds have become a huge problem. The Serious Fraud Office says more than $110 million has been invested in this area, and most of it has been lost.

Last week in Auckland four fraudsters were sent to prison for a total of 15 years and 9 months. Their "too-good-to-be-true" scheme was typical of the type of scam New Zealanders are falling for in large numbers.

In the 1990s Investor International promoted high-yield investment schemes in the United States. Its principal promoter was Rudolf van Lin who was convicted of offences relating to these fraudulent schemes in March 1999.

After the bust-up of Investor International's American operation, Donald Allen and Paul Palmer - also known as Gene Palmer - decided to set up a similar operation in New Zealand.

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