New Zealand’s Monetary Markets Authority (FMA) has made a everlasting cease order in opposition to David Elgar McEwen and entities related to him (McEwen and Associates).
The entities related to Mr McEwen are Stockfox Restricted, Cosmopolitan Holdings Restricted, Technique Providers Restricted, Fund Administration Providers Restricted, Digitech 1 Restricted, M and A Holdings 1 Restricted, M and A Holdings 2 Restricted, Agtech 1 Restricted, Agtech 2 Restricted, Agtech 3 Restricted, Startight Holdings Restricted, Modern Capital Restricted, and McEwen’s Restricted Partnership.
The cease order prohibits McEwen and Associates from:
- Making gives, points, gross sales or different disposals of McEwen and Associates’ monetary merchandise,
- Distributing any restricted communication that pertains to a proposal of McEwen and Associates’ monetary merchandise,
- Accepting additional contributions, investments, or deposits in respect of McEwen and Associates’ Monetary Merchandise.
The FMA discovered that restricted communications made by McEwen and Associates regarding gives of monetary merchandise:
- Had been false or deceptive, or prone to mislead or confuse,
- Contained a fabric misdescription or materials error,
- Didn’t adjust to the Monetary Markets Conduct Act 2013 with respect to unsubstantiated claims made as to the worth of the McEwen and Associates monetary merchandise supplied.
Shareholder agreements made inaccurate statements concerning the firm’s holding of shares on behalf of traders at the moment.
Sale and Buy Agreements (S&PAs) regarding gives of monetary merchandise included a illustration that the investor could be entitled to obtain a return on funding that will be paid out within the type of further fairness the place it was unclear and complicated as to how this is able to be enforceable for the reason that fairness issuer isn’t a celebration to the S&PA.
Restricted communications had been additionally despatched to present and potential traders that made unsubstantiated representations as to the worth of shares and/or property held within the related firms.
The cease order revokes and replaces the interim cease order issued to McEwen and Associates in November 2023. The everlasting cease order will stay in pressure till such time the FMA varies, suspends, or revokes the order.