The Financial Markets Authority has charged a man with offences under the Crimes Act and the FMA Act at the Manukau District Court.
He has been charged with:
- 16 charges of obtaining by deception under Section 240 of the Crimes Act 1961
- 3 charges of dishonestly using a document under Section 228 of the Crimes Act 1961
- 2 charges of obstruction of the FMA's powers under Section 61 (1) (b) of the Financial Markets Authority Act 2011.
The maximum penalty for the Crimes Act charges is 7 years imprisonment. The maximum penalty for obstruction of the FMA's powers is a fine of $300,000.
The FMA alleges the man contacted people and convinced them to 'invest' by transferring money into bank accounts he controlled. After incorporating a company, he further cold-called other investors to promote a foreign exchange investment service which did not exist.
He obtained just under $100,000 from the people he contacted. Neither he, nor his company was authorised or licensed by the FMA, but he held out he would invest funds on their behalf.
Karen Chang, FMA Head of Enforcement said, "The FMA will take enforcement action where it sees conduct at the perimeter of financial markets that harms investors or could damage the reputation of New Zealand's financial markets."
