A New Zealand court has sentenced former financial adviser Murray McClune to three years and seven months in prison after he was found guilty of two counts of theft by a person in a special relationship.
The sentencing follows an investigation conducted by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko.
In addition to the custodial sentence, McClune is permanently prohibited from serving as a director, holding management roles, or providing financial advice and client money or property services under the Financial Markets Conduct Act 2013.
McClune did not contest this ban, and the court decided against ordering reparation, citing the impracticality of such a measure.
The case centres on McClune’s misappropriation of approximately $1.7 million from elderly clients between 2016 and 2018.
During this period, McClune, registered as a financial adviser, presented investment opportunities to two retired couples with whom he had longstanding personal and professional relationships.
Instead of investing the funds as agreed, McClune diverted the money for personal and business use, including purchasing property, travel, entertainment, and other expenses.
Although a portion of the funds was eventually returned, one set of clients had to pursue legal action to recover part of their investment, and both parties remain owed money.
“His conduct was both deliberate and dishonest, and involved a gross breach of trust," said Margot Gatland, head of enforcement at the FMA. "The conduct arose in the course of his role as a financial adviser, a position he used to take advantage of his clients."
She added that the permanent ban was intended to protect the public and serve as a deterrent to others in the industry.
Gatland also highlighted the expectations placed on advisers with long-standing client relationships.
“Mr McClune was a trusted financial adviser of over 40 years’ experience, and his clients were entitled to trust their adviser, particularly considering his long-standing experience, his profession, and his registration on the Financial Service Provider Register,” she said.
Prior to these offences, McClune had been convicted of obtaining funds by deception from another long-term client, taking $203,500 between 2009 and 2010 for personal and business expenses. The recent offences occurred before he was charged for the earlier case.
McClune was listed on the Financial Service Providers Register as an insurance broker from March 2011 to November 2016 and as a financial adviser until April 2022, operating primarily through Insurance Plus Ltd.
In related news, the FMA has issued a public notice to clients and subscribers associated with former Auckland adviser David McEwen, following reports of unauthorised transactions on customer accounts.
McEwen previously provided financial advice and operated several related businesses, including a subscription-based share-tipping newsletter, the “McEwen Investment Report.” Some affected customers have held subscriptions for several years, with some dating back a decade.
The FMA has previously taken regulatory action against McEwen and his businesses, including issuing warnings and a Stop Order after finding that some communications about financial products were misleading or did not comply with the Financial Markets Conduct Act 2013.
Despite these measures, the FMA alleges that McEwen continued to solicit funds and accept contributions, resulting in criminal charges being filed in March 2025.
