Fraudster boasted venture would 'make us big'
A Palmerston North businessman who has admitted dishonestly trying to obtain millions of dollars previously boasted to the Manawatu Standard about a business venture.
In the Palmerston North District Court this week, John Grant Fagan, 54, admitted 11 charges of using forged documents, three of making false statements and one of forgery.
Factual disputes about the charges need to be sorted before Fagan is sentenced.
Court rulings allow the Standard to report that Fagan was general manager of a New Zealand registered company called RMS Holdings New Zealand Ltd at the time of the offending. The company was involved with developing a device that claimed to speed up the internet by 50 per cent and in a 2010 interview with the newspaper, company representatives described a system that looked like a modem and allowed users to boost internet speeds without having to pay hundreds of dollars to install fibre-optic cables.
Fagan, who spelled his name "John Feygan" and said he was chief executive of Remote Management Systems, said he and other people involved in the company had tried to keep its work secret.
But Fagan then thought it was time to celebrate.
"This is going to make us big . . . We have invested millions of investors' money, worked weekends and long hours and it's finally paying off."
Fagan has admitted to forging documents in 2004, making false statements in 2009 and 2011 and from 2009 to 2011 using forged documents.
A statement from the Serious Fraud Office yesterday said the charges "arose out of Mr Fagan's attempts to promote a number of technology and property companies". "He used false and forged documents which overstated the value or success of the business, in an attempt to encourage people to invest with him.
"Mr Fagan's actions relate to existing investments of approximately $1.3 million, investments obtained of approximately $750,000 and attempts to obtain investments of approximately $4.5m from various individuals and entities."
The statement said Fagan had appeared in court "on two occasions in relation to fraud offending".
SFO acting chief executive Simon McArley said Fagan's offending showed he was a "significant risk to the commercial community".
"I believe it is important that the SFO be able to respond effectively to offending like this in order to protect the integrity of our commercial environment and ensure that genuine entrepreneurs and innovators are able to access the capital they require."
Fagan was bailed to a Palmerston North property until his next court appearance on a date yet to be set.
- © Fairfax NZ News
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