Theft allegations surface
The Financial Markets Authority (FMA) has filed criminal charges against a former financial adviser, who has pleaded not guilty to two representative charges of theft by a person in a special relationship.
The defendant, whose name is currently suppressed, is accused of misappropriating approximately $1.7 million from clients.
Alleged misuse of $1.7 million
According to the FMA, the defendant allegedly procured $1.7m from two sets of clients between 2016 and 2022, promising to invest the funds on their behalf. Instead, it is claimed that the funds were used for personal purposes.
“Theft by a person in a special relationship is a serious offense that undermines trust in the financial sector,” the FMA said.
Potential penalty of seven years’ imprisonment
The charge of theft by a person in a special relationship carries a maximum penalty of seven years’ imprisonment.
The FMA’s charges were filed in the Auckland District Court, with the defendant’s next court appearance scheduled for Oct. 17.
Read the FMA media release here.
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