The Financial Markets Authority (FMA) says it has charged a man with offences under the Crimes Act 1961 and the Financial Markets Authority Act 2011.
He has been charged with:
- 16 charges of obtaining by deception under s 240 of the Crimes Act 1961
- 3 charges of dishonestly using a document under s 228 of the Crimes Act 1961
- 2 charges of obstruction of the FMA’s powers under s 61(1)(b) of the FMA Act 2011
The FMA says the man, who has not been named until it is clear whether he will seek name suppression, contacted members of the public claiming to invest funds on their behalf.
He convinced members to transfer funds to bank accounts in his control and obtained just under $100,000.
After incorporating a company, he further cold-called other investors to promote a foreign exchange investment service which did not exist.
The FMA also alleges the man obstructed the exercise of the FMA’s powers during their investigation, by giving false evidence in purported compliance with a notice issued to him under s 25 of the FMA Act.
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 first hearing is scheduled for 12 June 2019.