Craig Piggott on raising US$100m
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RNZ News
16 hours ago
- RNZ News
Is Big Tech more powerful than government?
Photo: University of Auckland How much of your life is ruled by an algorithm? It's possibly more than you think. Everyday algorithms are aiding us to make decisions - and increasingly making decisions about us. A handful of tech giants like Google, Meta and Amazon are in control of the AI systems that shape our lives - what we read, what we buy, who we interact with ... and concerningly, what we consider to be "true". Professor Alexandra Andhov is in the inaugural Chair in Law and Technology and Director of the Center for Advancing Law and Technology Responsibly at the University of Auckland. She's giving a talk at next Tuesday's Raising the Bar series focused on how unchecked AI development is already threatening our society - and what's needed to rein it in.
1News
2 days ago
- 1News
US tax adviser conned small town locals of $160m in ponzi scheme
For decades in a stretch of upstate New York, Miles "Burt" Marshall was the man you went to see if you had some money to invest but wanted to keep it local. Working from an office in the charming village of Hamilton, down the road from Colgate University, Marshall prepared taxes and sold insurance. He also took money for what was sometimes called the '8% Fund,' which guaranteed that much in annual interest no matter what happened with the financial markets. His clients spread the word to family and friends. Have a retirement nest egg? Let Burt handle it. He'll invest it in local rental properties and your money will grow faster than in a bank. Marshall was friendly and folksy. He gave away gift bags with maple syrup, pickles and local honey in jars labelled with cute sayings like, 'Don't be a sap. For proper insurance coverage call Miles B. Marshall." ADVERTISEMENT The morning's headlines in 90 seconds, including our first ever espionage trial, the end of an era for Cook Strait crossings, and a surprising survival story. (Source: 1News) 'He would tell you about all the other people that invest. Churches invest. Fire companies invest. Doctors invest,' said one client, Christine Corrigan. 'So you'd think, 'Well, they're smart people. They wouldn't be doing this if it wasn't okay to do ... Why are you going to be the suspicious one?' Then it all came crashing down. Marshall owed almost 1000 people and organisations about US$95 million (NZ$160 million) in principal and interest when he filed for bankruptcy protection two years ago, according to the trustee's filings. This summer, the 73-year-old businessman was indicted on charges that his investment business was a Ponzi scheme. He could face prison time if convicted. Marshall's lawyers declined to comment. ADVERTISEMENT Total losses by Marshall's investors fall short of the multibillion-dollar Ponzi scheme masterminded by Bernie Madoff. But they loom large in the small, college town of about 6400 people and its largely rural surrounding area. Many investors were Colgate professors, labourers, office workers or retirees. Some lost their life savings of tens or hundreds of thousands of dollars. Corrigan and her husband, who own a restaurant 48 kilometres east, were owed about US$1.5 million (NZ$2.5 million). Now they're wondering how someone who seemed so reliable, who held annual parties for his clients and even called them on their birthdays could betray their trust. 'You look at life differently after this happens. It's like, 'Who do you trust?'' said Dennis Sullivan, who was owed about $40,000. 'It's sad because of what he's done to the area.' A reliable local businessman Marshall and his wife lived in a brick Victorian, blocks from his office. ADVERTISEMENT Aside from insurance and tax preparation, he rented more than 100 properties and ran a self-storage business and a print shop. His parents had run an insurance and realty business in the area and the Marshall name was respected locally. Though he quit college, he was a federally enrolled tax professional. To many in the area, he seemed knowledgeable about money and kept a neat office. 'He had French doors and a beautiful carpet and a big desk and he just looked like he was prosperous and reliable," Corrigan said. Marshall began taking money from people to buy and maintain rental properties in the 1980s. People got back promissory notes — slips of paper with the dollar amount written in. Withdrawals could be made with 30 days' notice. People could choose to receive regular interest payments. Participants saw the transactions as investments. Marshall has called them loans. For many years, Marshall made good on his promises to pay interest and process withdrawals. More people took part as word spread. ADVERTISEMENT Sullivan recalls how his parents gave Marshall money, then he did, then his fiancee, then his fiancee's daughter, then his son, and even his snowmobile club. 'Everybody gets snowballed into it,' Sullivan said. A number of investors lived in other states, but had connections to the area. The promise of 8% returns was unremarkable in the '80s, a time of higher interest rates. But it stood out later as rates dropped. Marshall told a bankruptcy proceeding that he assumed appreciation on his real estate would more than cover the debts. 'That's obviously false now," he said, according to filings, "but that's what I always thought.' Reckoning with more than US$90 million in debt ADVERTISEMENT The money stopped flowing by 2023. Marshall filed for Chapter 11 bankruptcy protection that April, declaring more than US$90 million in liabilities and US$21.5 million in assets, most of it in real estate. He explained in a filing that he had been hospitalised for a 'serious heart condition' that required two surgeries, costing him US$600,000. As news of his illness spread, there was a run on note holders asking for their money back. The bankruptcy trustee, Fred Stevens, blamed Marshall's insolvency on incompetent business practices and borrowing from people at above-market rates. The trustee contended that by 2011, Marshall was using new investment money to pay off previous investors, the hallmark of a Ponzi scheme. Prosecutors claim Marshall falsely represented the profitability of his real estate business and had his staff generate "transaction summaries' with bogus information about account balances and earned interest. Money was funnelled into his other businesses, and he spent hundreds of thousands of investors' dollars on personal expenses, including airline travel, meals out, groceries and yoga studios, according to prosecutors. ADVERTISEMENT Marshall's clients feel betrayed. 'We left it there so that it would accumulate. Well, it accumulated in his pocket,' Barbara Baltusnik said of her investment. The ripple effects of multimillion-dollar losses Marshall pleaded not guilty in June to charges of grand larceny and securities fraud. He's accused of stealing more than US$50 million. Marshall's home and properties were sold as part of bankruptcy proceedings, which continue. People who gave Marshall their money stand to recoup around 5.4 cents on the dollar from the asset sales. Potential claims against financial institutions are being pursued, according to the trustee. Baltusnik said she and her husband were owed hundreds of thousands of dollars and now she wonders how she will pay doctors' bills. Sullivan's mother moved in with him after losing her investment. ADVERTISEMENT In Epworth, Georgia, retiree Carolyn Call will never see money she hoped would help augment her Social Security payments. She found out about Marshall though an uncle who lived in upstate New York. 'I'm just able to pay my bills and keep going," she said. "Nothing extravagant. No trips. Can't do anything hardly for the grandkids.'
NZ Autocar
2 days ago
- NZ Autocar
Kia Tasman launches in New Zealand
Kia's Tasman has arrived in the country, and is ready to rip into the ute segment. We recently had a brief experience of it off road, where it proved capable, showing off its rough road credentials. It was all low speed stuff, rumbling around in low range and trying out the X Trek low speed crawl control. So still no verdict on how this truck drives on road in New Zealand just yet. That will come soon however. Video review – Kia Tasman first drive: Ready for the rough stuff? We spoke with Kia NZ MD, Todd McDonald, about how hard it is to launch a new ute into a market segment the brand has no prior history in. 'I don't think it's difficult to launch Tasman here, because the market is well established already. It's more a case of how do we launch a vehicle that is uniquely Kia and create a point of differentiation from both our other products, and those of our competitors.' He sees being the new challenger as a huge opportunity. Read more – Local pricing announced for Kia Tasman ute 'Tasman is great from a brand perspective, but also for our dealer network. It provides them with more opportunities and is a welcome addition.' McDonald admits there is a bit of a learning curve for some dealers that have never sold a ute before however. 'Our pre-launch activity has been about getting them involved and understanding what the market is and how to meet the consumer requirements.' In terms of those opportunities, McDonald says Tasman hits all parts of the market. 'Our range is targeted at volume. Everything from our base model TX all the way through to X line is specific and targeted. We have double cab chassis and simple cab chassis coming, which are also targeted at specific customers within New Zealand. 'Next year our target would be to hit the top five in New Zealand for commercials in our first full year of sales.' Kia is launching with a range of New Zealand designed and built accessories for Tasman. 'I think we're up to 149 options for our New Zealand customers. Most of these are made here, which is quite important to us for New Zealand business and for our competitiveness within the market.' According to McDonald he says the response from dealers and customers alike has been one of 'overwhelming enthusiasm' towards the new ute. Asked to describe the Tasman's styling, McDonald says it's 'fresh, modern, new generational.' As to the comments online that people either love or loathe it, he says; 'Give it a year. I think this kind of styling will become quite mainstream. We've seen a lot of other manufacturers moving towards the US-style body shape. I think that's where the direction of the ute is going. I think you might see traditional brands also moving towards that same style.'
