Financial advisor accused of fraud expected to plead guilty

Adam Feeley, head of the Serious Fraud Office. Photo / Dean Purcell

The director of an investment company accused of stealing $5 million from family and friends is expected to plead to Serious Fraud Office charges.

Evan Cherry, the sole director of Albany-based Investment Solution Limited (ISL), is alleged to have stolen investors' funds and made false statements in offer documents.

The 54-year-old, who lost name suppression last month, appeared at the North Shore District Court briefly today.

His lawyer Matt Dixon said he was "reasonably close" to resolving the matter with the SFO.

"We are very close but regrettably we are not in a position to rubber stamp it today."

SFO prosecutor Todd Simmonds told the court at Cherry's last appearance that he expected Cherry to enter pleas shortly.

The SFO alleges at least $5m of the $9m Cherry received from about 175 investors was not invested in accordance with instructions.

He faces charges of theft by a person in a special relationship, theft by misappropriating proceeds and making a false statement by a promoter.

Out-of-pocket investors were at court to watch the proceedings.

As Cherry left court with his partner and Mr Dixon, a woman yelled out: "It's a bloody farce".

One investor, who gave his name as Leon, told APNZ that he had invested $280,000 with Cherry. He managed to get $90,000 back.

He said he had been in touch with about 70 investors in New Zealand.

Leon said there was absolutely no chance of getting the rest of his money back.

ISL traded under several names including, ISL Nominated Limited, Trading Strategies Limited, ISL Strategic Investments Limited and ISL Strategic Investments 100 Limited.

The ISL companies were advertised as providing returns or finding solutions that "generally outperform the market".

Last month SFO chief executive Adam Feeley said his office urged the public not to let personal relationships cloud their judgement of investment schemes.