Unscrupulous Stock Broker Squanders Client Funds on Sports Betting
Joshua Calvert's Hoax: A Gambling Scam in Broad Daylight
Last week, a shocking scheme came to light involving bogus stock trades, leading to two individuals losing significant sums. A 30-year-old from Auckland, New Zealand, named Joshua Calvert, confessed to this elaborate con, deceiving two friends into investing their money for a purported stock venture while using it for sports wagers.
Calvert, the self-proclaimed "fake broker," managed to amass around NZ$60,000 ($37,500) from these unsuspecting investors. He claimed he would channel their funds into stocks on US and New Zealand exchanges, including sports hedge bets. To avoid raising suspicion, he neatly crafted and sent financial statements showing an increase in funds and a promising monthly return with profit percentages dependent on the investment.
However, these statements were phony, and there were no actual stock investments. Calvert, without a registration in the Financial Service Providers Register, admitted to losing the money on sports bets.
Calvert's victims, Jordan Sandford and another unnamed individual, believed they were investing their money, only to find out they had fallen prey to a calculated deception. Sandford, for instance, lost all his savings to this charade.
Upon discovering the scheme, Sandford reported the incident to the Financial Markets Authority and the Serious Fraud Office. Although the authorities did not initiate an investigation at first, Sandford took the matter to the police in November, and an investigation into Calvert's actions is currently in progress.
Gambling in New Zealand: A Rigorously Regulated Zone
Gambling in New Zealand is highly regulated, with all gambling activities overseen by the Gambling Act 2003. The law essentially bans most online gambling, allowing only those offered by the Totalisator Agency Board (TAB), the country's sole legal online gambling operator. Private companies can operate in a B2B model or as offshore providers, but they must comply with local laws.
Any operator not adhering to these regulations risks facing fines or prosecution. Notably, influencers promoting unlicensed offshore operators can face fines of up to $10,000 per violation. The Department of Internal Affairs issues takedown notices and warning letters to non-compliant parties.
As Calvert's case demonstrates, the regulatory landscape in New Zealand imposes severe consequences for non-compliance in financial activities, too, with a focus on promoting local industries and maintaining a strict adherence to the law.
- The gambling scam perpetrated by Joshua Calvert, allegedly involving bogus stock trades and sports wagers, was reportedly a calculated deception that resulted in two individuals losing significant sums.
- As the self-proclaimed "fake broker," Calvert managed to amass around NZ$60,000 from unsuspecting investors, claiming he would invest their funds in stocks on US and New Zealand exchanges, including sports hedge bets.
- Calvert's victims, Jordan Sandford and another unnamed individual, were deceived into believing they were investing their money, only to find out later that there were no actual stock investments, and the money had been lost on sports bets.
- In the General-News and Crime-and-Justice categories, Sandford reported the incident to the Financial Markets Authority and the Serious Fraud Office, leading to an ongoing investigation into Calvert's actions.
- Interestingly, while gambling in New Zealand is subject to strict regulations under the Gambling Act 2003, influencers promoting unlicensed offshore operators can face fines of up to $10,000 per violation, demonstrating the country's commitment to maintaining a regulated and fair gambling environment.
