The Financial Markets Authority has issued its first ever ‘stop order’ against a company linked to a controversial Hamilton housing development. [Read more…]
In five of the last nine years, ponzi schemers have been banged up in jail as a result of their nefarious actions.
Between 1991 to 2012, New Zealand had at least one active Ponzi schemer at work at all times, most under the old Securities Commission, which was ineffectual and was swept away to be replaced by the Financial Markets Authority (FMA).
The FMA can’t guarantee there are no ponzi schemes operating as you read this. [Read more…]
A financial adviser has pleaded guilty to stealing approximately $3 million in investor funds and shares.
Andrew Robinson, 42, the principal of mortgage broking and insurance firm Strategic Planning Group, appeared in the High Court at Auckland on Wednesday morning where he pleaded guilty to four charges of theft by a personal in a special relationship, one of improperly dealing with funds and one charge of fraudulently using a document.
He pleaded guilty to stealing about $2.5 million of Strategic Planning Group investor funds, and three other counts of stealing $50,000 to $258,000 from four named people.
Robinson was a registered financial adviser until being stripped of this status when the Serious Fraud Office and Financial Markets Authority began investigating.
Between 2010 and 2012, Robinson used $3m in investor funds to pay for personal and business expenses or to repay other investors, and lied to investors when proving reports.
He was remanded in custody to a disputed facts hearing in June. Robinson and Mark Turnock, a co-director of Strategic Planning Group, also face charges brought by the FMA relating to making false statements.
Source: Stuff News. Published 13 May 2015
Deputy editor of the Fairfax Business Bureau, Tim Hunter (“Chalkie”) has expressed his doubts today about a statement made by the Financial Marketing Authority (FMA) that six former directors of the Strategic Finance Ltd, who were recently banned for five years from directing a finance company, have ” limited personal assets” (Dompost, June 11, 2014). He implies that it was for this reason that the FMA took the view that they were unable to contribute anything from their own “piggy banks” to help compensate investors who lost millions due to the company’s collapse, and/or contribute to the settlement made between them and their auditors, and the company’s receivers. He argues: “Most likely, for at least some of them, their assets are held in trusts and arm’s length structures that keep their personal assets to a minimum.”
As examples “Chalkie” highlights the residential addresses given by Strategic Finance directors on the Companies Office website, as required by law, that indicate a wealthy lifestyle with assets held in trust. [Read more…]
The auditors and former directors of Strategic Finance Limited have settled civil action brought by the receivers of the failed finance company and agreed to pay $22 million. Some 10,000 Strategic investors owed $367.8 million have already been repaid 10 cents in the dollar, or $36.8 million, and the receiver, PwC’s, John Fisk, still estimates they will get between 12% and 20% of their principal back following the latest settlement.
The settlement will see former directors Kerry Finnigan, Graham Edward Jackson, Marcel Aubrey Lindale, Timothy John Rich, Denis Grenville Thom and David John Wolfenden barred from directing finance companies for five years. [FMA remains of the view that they are likely to have breached their disclosure obligations under the Securities Act see below]
“The terms of the settlement deliver a strong deterrence message and include enforceable undertakings from the directors of Strategic not to act as a director of an issuer of securities to the public for five years,” Belinda Moffat, director of enforcement of the Financial Markets Authority (FMA), said.
But one investor thinks most of those who have lost money will not believe justice has been served, with the directors seeming to have “got away with murder.”
The FMA is refusing to say exactly who will be making the payment. [Read more…]