$15m 'ponzi' scheme charges laid

Jackie (l) and Mike Bradley. Photo / supplied. Steven McNicholl

The Serious Fraud Office has laid a raft of charges against an Auckland couple accused of fleecing more than 80 investors of nearly $15 million.

Mike and Jackie Bradley today appeared in the Auckland District Court, charged with a multitude of fraud-related offences. They have not yet entered a plea and were remanded on bail to reappear on January 13 next year.

In a press statement issued by the Serious Fraud Office, Adam Feeley said 87 charges under the Crimes Act had been laid against the Bradleys.

The charges relate to "what is alleged to be the defrauding of approximately 85 investors of over $15m."

Feeley said the case is alleged that their company B'On took investors' money to repay earlier investors, and also to fund the lifestyle of the defendants.

"Anyone contemplating investing their hard-earned money should understand the risks that are attached to any form of investment. However, it is also reasonable that New Zealanders can expect that any investment scheme is run honestly, and that their money is used in the manner promised."

SFO director Adam Feeley told a parliamentary select committee this week the office was poised to lay charges over what is known as a "ponzi scheme".

The couple's financial advisory firm, Bradley & Bradley, operated from the Vero Centre in central Auckland.

The firm was placed into voluntary receivership last December and in July, receivers BDO Auckland told investors it had not received satisfactory explanations from the directors about the state of the firm's finances.

Investors - several of whom were in the public gallery of the court today - were told it was unlikely there would be any payout, despite the sale of the pair's mansion in Remuera.

The Bradleys' home in Bassett Rd was sold in July for more than $4 million.

However, the couple had a substantial bank mortgage and their lawyer also had a mortgage over the house. At the time, BDO said it was unlikely there would be any money left over.

The couple are credited by some as pioneers who helped to create the financial advice industry in New Zealand.

In 1988, Bradley, then known as Jackie O'Neill, published a book called The Winning Woman, which focused on financial advice for women.

The Companies Office began investigating last year after complaints from investors, and four firms jointly run by the couple were placed in liquidation.

They were B'On Financial Services, B'On Financial Services NZ, Bradley O'Neill Financial Planners and Bradley O'Neill Financial Services.

Another company of which Mike Bradley is the sole director, Rosehip Nominees, was also placed in liquidation.

Feeley told MPs this week the matter was "very quickly transformed into an SFO investigation."