Name suppression lifted on financial adviser

Murray McClune, a former financial adviser, has pleaded guilty to two charges of theft by a person in a special relationship following an investigation by the FMA.

McClune had worked in the insurance industry since the late 1960s. He had an established book of clients, including some who had used his services for decades and considered him a friend. In addition to providing advice on insurance, McClune also offered investment opportunities to some of his clients.

McClune had name suppression when the FMA revealed the charges in November last year.

Between 2016 and 2022 McClune procured around $1.7 million from two sets of elderly clients – on the basis that he would invest the funds on their behalf. Instead, he used some of those funds for his own personal purposes.

To give the impression that their funds remained invested and to conceal his unauthorised dealings, he issued falsified statements to the clients, until his offending was detected when he was unable to repay the funds on demand.

FMA Head of Enforcement Margot Gatland said, “McClune dealt with the funds of elderly, vulnerable investors with whom he had a close personal relationship and took advantage of those relationships to misappropriate their funds.

“New Zealand’s financial system relies on trust, transparency and fairness. In addition to being devastating to the victims, offending of this nature undermines public confidence in registered advisers and harms their reputations.  The FMA will respond to serious misconduct of this type where required and to the fullest extent of the law.”

This case was originally brought by the FMA but became a Crown prosecution after McClune initially elected trial by Jury, before deciding to plead guilty.

Theft by a person in a special relationship carries a maximum penalty of seven years’ imprisonment.

Background

Mr McClune was registered on the Financial Service Providers Register as an insurance broker from 26 March 2011 to 2 November 2016.  He was registered as a financial adviser between 26 March 2011 and 26 April 2022.  Mr McClune offered his services primarily through his business Insurance Plus Ltd.