The Dunedin-based investment adviser's office was raised by the Serious Fraud Office in May.

A High Court judgment on the Financial Markets Authority's application to liquidate Kloogh's companies has been released, which shows the scale of money that is unaccounted for.

It shows that clients invested nearly $15.7 million with his companies, Financial Planning Ltd and Impact Enterprises Ltd, between May 2012 and April 2019.

But only $7.43 million was passed on to be held by Consilium or its predecessor, Discovery Portfolio Services.

About $450,000 went into Kloogh's private bank account.

Associate Judge Dale Lester said while a full analysis had yet to be completed, it seemed substantial funds had been used for Kloogh’s personal expenditure and the companies’ financial statements gave no hint as to what had happened to the $8 million that was unaccounted for.

The judgment shows one client invested $101,000 with Kloogh, who spent $35,000 of the money on his credit card and personal debt, used a further $9,000 to pay other investors, and invested just $41,000.

The client went on to pay regular monthly amounts totalling just over $54,000 and deposited another lump sum of $37,000 in 2016.

Of that, $33,700 was paid to other investors and $2,000 used for credit card payments.

When the client asked for $100,000 back for house renovations, the money was drip-fed, withdrawn from other investors' accounts.

Lester said the evidence in relation to the misapplication of funds was comprehensive and compelling. “The scale of the missing client funds accrued and the circumstances set out in the evidence in relation to Client A by way of an individual example create a compelling case for the appointment of interim liquidators.”

Kloogh’s companies were not registered to receive client funds.

Lester said the threshold for appointing interim liquidators was met by a wide margin.

It follows from what I have said that it was necessary for interim liquidators to take charge of and locate the two defendant companies’ financial and other records, to exercise control over and maintain the value of the companies’ assets and the assets they control and to, at the very least, prevent further losses and hopefully use the powers they hold to trace further client funds.