By Rob Kidd of 
Barry Kloogh in the dock during his trial in 2020. Photo: RNZ / Tim Brown
A Dunedin financial adviser, who put his $15.7 million Ponzi scheme down to "overconfidence", lacks insight into his crimes after more than five years behind bars, the Parole Board says.
Barry Kloogh, 62, was jailed for eight years and 10 months when he came before the Dunedin District Court in 2020 and made his first application for parole on Wednesday.
Despite his tears and the fraudster condemning his crimes as "abhorrent", board member Greg Coyle said the inmate lacked insight into what caused his 25-year scam.
Kloogh, who wore the same grey jacket and white shirt in which he was sentenced, made no reference to the factors of greed and dishonesty, Dr Coyle noted.
His next parole hearing will be in December and a psychological assessment was ordered to "dig deeper" into his motives.
Vanya Thurston, who helped establish an investor support group, said the decline of parole was the correct result, but no cause for celebration among the victims.
The losses would affect families for generations, she said.
"A lot [of victims] didn't want to participate in this process because it was retraumatising. I truly believe it led to people's premature deaths; the stress of it has just been too much," Thurston said.
Dr Coyle began yesterday's hearing by summarising the views of Kloogh's victims.
"Dreams have been shattered; you've stolen their future; lives have been wrecked ... their world has been turned upside down, based on narcissistic greed."
It was "disgusting, manipulative behaviour", they said.
Kloogh acknowledged the statements were true.
"I think I was too overconfident ... I simply thought I would be able to pay this money back.
"I obviously have this character flaw that suggests I can achieve anything and I know I can't now."
At Kloogh's sentencing, the court heard he had embezzled $15.7m of investor funds, but yesterday he said he believed the total was $18m.
He estimated he personally profited by up to $3m.
"I think that was more about making myself and others around me feel good. I think that was a mechanism to make me feel I was better than everyone else and I simply wasn't," Kloogh said.
He told the Parole Board his use of alcohol was a key factor in the offending.
Kloogh said he would drink to stifle any negative emotions and instil a sense of confidence.
"I had moments I thought: 'This isn't going to work'. I had alcohol again, there was bravado and away I would go," he said.
"What alcohol did was remove any semblance of morality that I had to pull myself in."
Panel member Paul Knox said many victims had spoken about Kloogh's dramatic performances, which had led to them investing with him.
How could the board be confident the prisoner's tears were not a similar manipulative display?
"I absolutely have heartfelt emotions about these people," Kloogh said.
"I never want to go into the emotions of harming people ever again. I made a pact that I would not do this ever again, that I would not get involved in this stupid behaviour ever again, and I've held true to that pact."
Dr Knox suggested that might be a little hasty, given Kloogh had been in prison for the past five years.
The board discussed with him an "exclusion zone" - a prohibited geographical area to stop a parolee unwittingly running into his victims - common in such serious cases.
Kloogh said he had not considered living anywhere outside Dunedin because it was where all his support remained. He believed keeping "a low profile" and dedicating himself to studies and household chores would keep him out of the public eye.
Kloogh said he had no assets remaining, bar a $12,000 KiwiSaver account.
It still makes him better off than one of his victims, who told the Parole Board they had just $10 in the bank at present.
This story was first published by the Otago Daily Times.
