SFO probes group with links to ex-MPs

Adam Feeley. Photo / Brett Phibbs

A financial services group with links to two former MPs is being investigated by the Serious Fraud Office.

The SFO is looking into the claims WSD group of companies failed to correctly account to investors for funds received.

Former Internal Affairs Minister Richard Worth was a director of WSD Global Markets until January last year but he has since sold his shares in the company.

Progressive Party president Matt Robson was also listed as a former director. He resigned in November last year.

WSD is accredited as a New Zealand Stock Exchange futures and options firm.

Yesterday, the SFO announced it had opened its 12th case this year into the WSD group of companies, which including WSD Global Markets, WSD Financial and WSD Financial Group.

Last year the SFO began an investigation into Wall Street Banking, which had links to WSD Global Markets and was controlled by Riaz Petal, who was also a former director WSD Global Markets.

SFO chief executive Adam Feeley said yesterday that the department had completed its investigation into Wall Street Banking and found it had not committed any offences in New Zealand.

He did say information on the case had been passed onto Indian Authorities.

Feeley said the investigation into the group had been co-ordinated closely with the NZX and Securities Commission.

"Most of the investors in WSD are overseas residents, so it is important that the SFO does all it can to protect New Zealand's reputation amongst both domestic and international investors as a well-regulated and safe place to invest."

Feeley said there was a "misconception" that the SFO had already investigated the group. This was not the case but in 2008 it had helped foreign authorities with their investigations.