The order was made by Associate Judge Dale Lester, following an application by the Financial Markets Authority.
As has been the case throughout the liquidation process, Mr Kloogh did not attend the hearing, held in Dunedin yesterday; nor did the companies, of which he was sole director, have any legal representation.
Liquidation was sought on two grounds, Judge Lester said: "The first is that each company is insolvent, and secondly that the liquidation of each company is justified on the just and equitable ground given the evidence of the fraudulent misuse of investors' money.''
In an earlier ruling, Judge Lester said at least $8 million of investors' money was unaccounted for, and that "it appears that substantial funds have been used for personal expenditure by Mr Kloogh.''
In court Judge Lester was told FPL had liabilities in excess of $12 million, while IEL had liabilities over $500,000.
Judge Lester said he was satisfied that the two companies were insolvent, and appointed the official assignee for the southern region as liquidator.
Investors are awaiting a report from interim liquidators Deloitte to shed light on how much they stand to lose.
No official tally of how many people and how much money is involved has been given, but the Otago Daily Times has spoken to dozens of people affected by the case, some of whom have substantial sums at stake.
