Compulsive Gambler Swindles Friends Through Bogus Investment Scheme
Joshua Calvert, an Auckland man, has admitted taking $60,000 from two friends under the pretense of doubling their money within 12 months by trading shares in the stock market. What he actually did with the money was quite different, as he lost his friends’ money on sports betting, saying his gambling addiction “ruined my life.”
Calvert’s Plan Worked Out Initially
Although Calvert had lost the money during 2021 and 2022, he sent counterfeit monthly financial records to his victims in an effort to convince them they were making a profit.
Although these investment statements were clearly fake, they appear to have worked, as Jordan Sandford, one of the victims of this financial scam, unwittingly handed over his life savings of $55,000 to Calvert.
Calvert, in return, promised to invest the money in a tech stock portfolio or longer-term trades that looked promising. Little did Sandford know that none of these were actually real, and that Calvert was in fact a compulsive gambler who was using a complex spread system to hedge his losses and ensure returns.
A Downward Spiral Of Events
Unfortunately, Calvert’s system failed, and as a compulsive gambler typically does, he began making bigger and more dangerous bets, chasing losses in a desperate attempt to recoup the money and pay his friends back.
Sandford, 24, who lives in Australia, had initially met Calvert through a church in Auckland. He trusted him and didn’t suspect that this was all a scam, especially since every deposit was recorded with a signed loan contract containing penalty clauses.
Despite their friendship, Sandford eventually started sensing something fishy and asked to get his money back. By that time, Sandford’s investment had grown to $98,000, as suggested by the financial statements.
However, Calvert offered justifications for his inability to reimburse the money, alleging that the funds had been immobilized in a US trading account following his interaction with an individual accused of money laundering, and that he was hospitalized due to a health crisis.
Although Calvert was totally culpable of driving his friends into this financial disaster, he maintained that he did not intend to deceive his friends. Instead, he actually believed he could grow their money and make a profit before things spiraled out of control.
Unfortunately, such compulsive gambling habits affect many people – whether directly or indirectly, and Calvert’s friends are living proof of this. This is why the importance of using the right support channels is imperative. The reality is, not everyone knows how to place wagers mindfully and look at this activity as a pastime. Without the right mindset, things can get out of hand very quickly.
Matters Escalated…
As the situation became more tense, Calvert apologized to Sandford and his other friend for the delay, and explained that he was in the process of obtaining a personal loan from ASB bank and raiding his KiwiSaver account, in an effort to repay them all that they were due.
Nonetheless, the money never materialized. Finally, David Jansen, Sanford’s friend, reviewed Calvert’s financial statements and discovered that they were fake.
Calvert had claimed to have generated lucrative investment returns through a mix of trades on the US and New Zealand stock exchanges, as well as sports hedge bets. However, Jansen soon discovered that the windfall profits described in the statements contradicted market trends.
Jansen confronted Calvert over the phone, and the former Vodafone employee confessed to the scam, acknowledging that none of the financial statements were genuine.
The Aftermath
Upon discovering that their money was all down the drain, Sandford and Jansen sought out Calvert’s parents to act as mediators in hopes of reaching a repayment agreement to avoid legal proceedings.
However, it turned out that Calvert was only receiving government assistance and was only able to offer a small weekly payment. According to Sandford’s calculations, it would take approximately 17 years to recover his losses with such a nominal repayment plan.
Eventually, the negotiation broke down and Sandford reported the incident to the police in November.
The authorities have confirmed that they have received a report of suspected fraud and are currently conducting an investigation.
