Auckland Businessman Sentenced for $400,000 Investor Scam

Auckland businessman Peter Austen has been sentenced to prison for his role in a fraudulent scheme that defrauded investors of approximately $400,000. The 65-year-old resident of Coatesville created a fictitious company to lure unsuspecting individuals into investing their money, only to misappropriate the funds for personal use.

During his sentencing, Judge Pippa Sinclair noted that Austen would have faced a longer prison term if not for the psychological trauma he experienced while imprisoned in Zimbabwe during the regime of dictator Robert Mugabe. In a statement to a pre-sentence report writer, Austen described the potential for imprisonment in New Zealand as akin to a “death sentence,” citing his post-traumatic stress disorder stemming from his time in Zimbabwe.

Despite his claims, Judge Sinclair expressed skepticism about Austen’s character and reliability as a witness. Throughout his July fraud trial, prosecutors highlighted his attempts to introduce altered documents to support his defense, which further undermined his credibility.

Austen’s fraudulent activities came to light as investigators traced the financial transactions linked to his fictitious company. The court heard that he promised investors high returns, but instead diverted their funds for personal expenditures. This breach of trust has left many individuals facing significant financial losses.

The case has drawn attention not only for the scale of the fraud but also for the dramatic circumstances surrounding Austen’s past. While the judge acknowledged the impact of his experiences in Zimbabwe, she ultimately emphasized the need for accountability.

As the legal proceedings conclude, the implications of this case serve as a reminder of the risks involved in investment schemes and the importance of due diligence. Investors are encouraged to thoroughly vet any investment opportunities and remain vigilant against potential fraud.