More than 30 New Zealanders reportedly lost almost $7 million by investing through a Hamilton man now living in Panama.

Tony Lusby, the man who received investments from around 70 New Zealand residents, said the money is "all gone" as a result of bad decisions and "misappropriating funds," according to The New Zealand Herald.

The Serious Fraud Office (SFO) confirmed on Wednesday it had investigated a complaint about Lusby and his investment scheme, but could not act as the alleged actions did not occur in New Zealand.

Complaints were also lodged before the Australian Securities & Investments Commission, the US Attorney's Office and the FBI.

Auckland barrister Mark van Leewarden said 67 people invested and all together lost $6.7 million over a period of five years. .

"He [Mr Lusby] set up a fund called Lifestyles Investment Group out of Samoa, and he reportedly had this investment scheme that would deliver returns of between 28 and 30-32 per cent per annum by trading equities," he said.

"People who knew other people got involved. It started off in 2007, ticking along until October last year when Tony flew out of New Zealand to Panama."

Lusby reportedly admits guilt and wants a chance to put things right. He said from Panama he had spoken to Leewarden and hoped to return to New Zealand by the end of this month. "It's all gone. At least 90 percent of it was lost on the market," he told the Herald.

Lusby said he wrote to investors to apologise earlier this year.

"If I was given the opportunity to trade out of it, I'd prefer to do it. There's a possibility I'm getting jail time for this when I come and face it in New Zealand... Some of the fund were misappropriated and I made some bad business decisions," said Lusby in the report.

Lusby admitted putting more than $200,000 into a bar in Panama, and the business did not prosper. A further $750,000 was lost in a failed merger with another investment fund.

NZ Authorities Inaction

An SFO spokeswoman said an investigation was launched after Leewarden's complaint, but it was determined that none of the alleged offences took place in New Zealand.

Leewarden, a former detective and director of investigation and security company Warden Consulting, said 20 US investors were also affected, with $1 million of investments.

"We've frozen some accounts, one in Hong Kong and one in Australia and we've mounted a number of approaches. We've been in touch with the US Attorney's Office in New York and briefed the FBI in Hawaii and spoken with the Panamanian police as well regarding a complaint. He [Mr Lusby] is very elusive, very hard to get hold of," adding the situation was devastating for New Zealand investors.

"They trusted that he would look after their money ... These are mum and dad investors who were looking for good returns in difficult times."