Media Release
MR No. 2025 – 43
Murray McClune, a former financial adviser, has been sentenced to three years and seven months’ imprisonment for two charges of theft by person in a special relationship. The charges followed an investigation by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko.
The Judge also permanently banned Mr McClune from holding directorships, management positions, and providing financial advice and client money and property services under ss 517-518 of the Financial Markets Conduct Act 2013 (FMCA), which Mr McClune did not oppose. No reparation order was made because the Judge considered to do so would be futile.
Mr McClune’s sentence arises out of his theft of approximately $1.7m from elderly advice clients over the course of two years starting in 2016.
FMA Head of Enforcement Margot Gatland said Mr McClune had committed serious offences. “His conduct was both deliberate and dishonest, and involved a gross breach of trust. The conduct arose in the course of his role as a financial adviser, a position he used to take advantage of his clients.
“Banning Mr McClune ensures protection of the public and deters others from committing breaches.”
Between 2016 and 2018, while working as a registered financial adviser, Mr McClune offered investment opportunities to two couples who had known him for over 40 years, and were in their retirement.
Rather than invest the funds he had received, he spent them on various personal and business expenses, including purchasing a home in his and his wife’s name. Funds were also spent on food and entertainment, travel and overseas expenses, wills and funeral planning and cash withdrawals. While much of the funds were eventually returned to the investors, in one case the investors had to pursue court action to secure the return of some of their funds, and both investors were left with some money owing.
“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,” said Margot Gatland.
Mr McClune has a previous conviction for a charge of obtaining by deception. His victim in that case was well-known to him as a good family friend, and Mr McClune was a financial adviser to her and her late husband for over 40 years. Her husband died in 2007, and Mr McClune advised her that he could make an increased gain on her superannuation savings which would be ready for her when she turned 65 in 2015. Between 2009 and 2010, Mr McClune made withdrawals from his victim’s investment funds. The total amount taken over an eight-month period was $203,500. Mr McClune used those funds for his and his wife’s personal expenses, and to pay other business associates.
The current offending occurred before he was charged and convicted for the previous offending.
ENDS
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.
Related media releases
Former financial adviser pleads guilty to charges of theft
FMA files criminal charges against former financial adviser
Media contact
Ellie Martel
FMA Senior Adviser, Media Relations
[email protected]
021 241 7868
