'Gut wrenching' - Victim of Ponzi scheme says he trusted financial adviser friend

“Friendship to me is friendship. And you don’t screw your friends.”

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Barry Kloogh ran his elaborate fraud for seven years. Source: 1 NEWS

That’s the words from Dunedin man Greg Gordon, one of 81 victims to lose tens of thousands of dollars to disgraced financial adviser Barry Kloogh.

“It’s gut wrenching,” Mr Gordon says.

Barry Kloogh was today sentenced in the Dunedin District Court, to eight years and 10 months imprisonment.

This after stealing nearly $16 million from 81 of his clients, over a seven year period.

One victim detailed in court, how Kloogh conned her and her late husband out of more than $700,000, with her husband on his death bed.

“Barry Kloogh not only conned us out of our money, but he also conned us in to thinking he was our friend.

“Chris died thinking he and Barry were friends. I’m so glad Chris never knew what you did Barry,” victim Karyn Churcher read to the court.

Kloogh’s two companies went in to liquidation last year, at the time he had two thousand active clients.

Of the 81 victims he owes money to, many had given him the money for investments, to go towards their retirement.

Greg Gordon now has to continue working fulltime, to make back the money lost.

“I’ll probably still be working when he gets out,” Mr Gordon says.

Fourteen of his victims attended face to face meetings with Kloogh in recent months, allowing them to question him on his motives.

Mr Gordon says he questioned Kloogh about one time he talked him in to investing another $25,000, after turning up at his house unannounced.

“We asked, how did you feel driving away. And he went ‘utter relief, I needed $25,000 and I just got it’.”

Kloogh will be eligible for parole in five years and four months.