Media Release
MR No. 2025 – 33
A financial adviser alleged to have applied for health and life insurance for non-existent people to receive commission payments is being de-registered and has had his financial advice provider licence cancelled.
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has cancelled Les Vela Limited’s (trading as Wise Insurance) financial advice provider (FAP) licence. It has also directed the Registrar of Financial Service Providers to de-register financial adviser and Les Vela Limited’s sole director and shareholder, Le Zhou (also known as Eric), from the financial services providers register FSPR, and prevent his re-registration for five years.
FMA’s Executive Director for Response and Enforcement Louise Unger said: “Under current weaker economic conditions we are seeing an increase in fraudulent activity by financial advisers, particularly in relation to insurances and mortgages. While these instances are the exception rather than the norm, the severity of the conduct makes this a priority for the FMA to address.”
Following notification from the impacted insurer, the FMA investigated 15 insurance policy applications submitted by Mr Zhou on behalf of 27 non-existent individuals, resulting in commissions paid to Mr Zhou totalling $260,937.
“The practice of submitting insurance applications for people who do not exist is known as ‘tombstoning’. Behaviour like this results in the erosion of the public’s confidence in the financial advice industry,” said Louise Unger.
“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.
“It is important for financial advisers to act ethically to maintain trust and uphold the integrity of the sector, which Mr Zhou has failed to do.”
The FMA is satisfied that Les Vela no longer meets key requirements for a market services licence under the Financial Markets Conduct Act (FMC Act) because:
- Les Vela Limited and Le Zhou failed to comply with the code of conduct, in particular, act with integrity1.
- Le Zhou, as Les Vela’s sole director and its only financial adviser, is not a fit and proper person2
- Les Vela is likely to breach its market services licensee obligations3
In addition to notifying the FMA, financial services providers are able to report concerning financial adviser conduct to the Police given such conduct may constitute a criminal offence. In this case, the Police arrested and charged the North Shore man in July 2025. He faces three representative charges of forgery in the North Shore District Court, reappearing in October.
Acting Detective Senior Sergeant Ben Bergin, from the Waitematā Financial Crime Team says: “Police are continuing to see an increase in people using their employment or access to systems to commit offending. Abusing these systems for personal gain is a criminal offence, and Police are continuing to hold offenders to account.”
Misleading or fraudulent activity by financial advisers is a focus for the FMA, as outlined in the recently-issued Financial Conduct Report that lists its regulatory priorities for the coming year.
Financial Conduct Report
ENDS
Media contact
Ellie Martel
FMA Senior Adviser, Media Relations
[email protected]
021 241 7868
