The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko has issued a notice to clients and subscribers associated with former Auckland financial adviser David McEwen, following reports of unauthorised transactions.
The regulator has received complaints indicating that some individuals have discovered credit and debit card charges on their accounts that they did not authorise.
David McEwen, who previously operated several related businesses, provided financial advice and offered subscription services, including a share-tipping newsletter called the “McEwen Investment Report.”
Some affected individuals reported that their subscriptions date back several years, with some as old as a decade.
The FMA has previously taken action against McEwen and his associated entities. The regulator had issued warnings about advice and financial products linked to McEwen, and imposed a Stop Order after finding that certain communications about financial product offers were misleading or did not comply with the Financial Markets Conduct Act 2013.
Despite these restrictions, the FMA alleges that McEwen continued to make offers and accept contributions, leading to criminal charges being filed in March 2025.
Louise Unger, the FMA’s executive director for response and enforcement, recommended that anyone who has previously engaged with McEwen, his related businesses, or subscribed to the “McEwen Investment Report” should carefully review their recent credit and debit card activity for any charges they did not authorise.
“If a charge has been made to cards without your authority, we advise you contact your credit card company or bank immediately and ask about the possibility of reversing the charge, how to withdraw any expired authorities, and whether it is necessary to cancel any existing cards,” she said.
Unger also noted that regularly reviewing financial statements is a prudent practice for all cardholders.
In a separate case, the FMA has revoked the financial advice provider licence of Les Vela Limited, which traded as Wise Insurance.
The company’s director, Le Zhou, was found to have submitted insurance applications for clients who did not exist, in order to obtain commission payments.
The FMA also instructed the Registrar of Financial Service Providers to remove Zhou from the register and prevent him from re-registering for five years.
The investigation began after an insurer reported suspicious activity. The FMA determined that 15 insurance policies had been issued for 27 fictitious clients, resulting in $260,937 in commissions for Zhou.
Unger commented that the FMA is seeing more instances of fraudulent activity by financial advisers, particularly in insurance and mortgage sectors, during challenging economic times.
“While these instances are the exception rather than the norm, the severity of the conduct makes this a priority for the FMA to address,” she said.
The practice, known as “tombstoning,” is considered harmful to public trust in the industry.
Unger emphasised that maintaining ethical standards is essential for advisers to preserve public trust and ensure the sector’s integrity.
“Financial advisers play an important role in helping New Zealanders grow their retirement savings and investments, source insurance and mortgages, protect their income and assets, and support overall financial well-being,” she said.
