Financial Markets Authority files criminal charges against former financial adviser David McEwen

The Financial Markets Authority made a permanent stop order against David McEwen and entities associated with him in December 2023.

New Zealand’s financial watchdog has filed criminal charges against former financial adviser David McEwen for allegedly failing to comply with a stop order preventing him from contacting potential investors.

The Financial Markets Authority (FMA) had made a permanent stop order against McEwen and a number of entities associated with him in December 2023 over concerns of a risk of investor harm.

The FMA alleges that McEwen failed to comply with the stop order by continuing to make offers and accept contributions for financial products.

McEwen, who is believed to be living abroad since November 2023, has been served with the charges, the FMA said. He entered a not-guilty plea and did not attend court.

Margot Gatland, FMA head of enforcement, said: “We are concerned that McEwen is continuing to flout the prohibitions of the stop order and may be causing potential harm to investors in doing so. I strongly recommend that investors contacted by McEwen or entities associated with him, in relation to the offer of a financial product, report it to the FMA.”

The entities associated with McEwen are Stockfox Limited, Cosmopolitan Holdings Limited, Strategy Services Limited, Fund Administration Services Limited, Digitech 1 Limited, M and A Holdings 1 Limited, M and A Holdings 2 Limited, Agtech 1 Limited, Agtech 2 Limited, Agtech 3 Limited, Startight Holdings Limited, Innovative Capital Limited and McEwen’s Limited Partnership.

An FMA investigation found that shareholder agreements made inaccurate statements about the company’s holding of shares on behalf of investors at that time.

It found restricted communications were also sent to current and prospective investors that made unsubstantiated representations as to the value of shares and/or assets held in the relevant companies.

It also found Sale and Purchase Agreements (S&PAs) relating to offers of financial products included a representation that could confuse investors.

McEwen describes himself on LinkedIn as having more than 30 years’ experience watching the markets and now specialises in “timely commentary on shares that I classify through nine key assessment criteria”.

He worked for the National Business Review between 1992 and 1996.

The charges against McEwen were filed in the Auckland District Court.