SFO charges financial advisor with $5 million fraud

Media Release

11 June 2012

SFO charges financial advisor with $5 million fraud

The Serious Fraud Office (SFO) today announced it had laid charges in the North Shore District Court against Mr Evan Paul Cherry (54), the sole director (prior to 11 July 2011) of Albany based investment and financial advisors – Investment Solutions Limited, ISL Nominees Limited, Trading Strategies Limited, ISL Strategic Investments Limited, and ISL Strategic Investments 100 Limited.

Mr Cherry is facing seven charges under the Crimes Act relating to the alleged theft of investor funds and false statements in investor reports.

Mr Cherry had initially sought and was granted name suppression, but this was lifted on Friday 8 June 2012.

The ISL companies were advertised as providing returns or finding solutions that “generally outperform the market”.

The ISL companies received approximately $9 million from an estimated 175 investors.

The SFO allege that at least $5 million of these funds were not invested in accordance with investment instructions.

SFO Chief Executive, Adam Feeley, says “This case is yet another example of where we are seeing people target family and friends to invest where, we allege, the promises or representations made, bear little relationship to the reality of the investment scheme. We strongly urge the public not to let their personal relationship with someone cloud their judgment as to the merits of an investment scheme."

The SFO acknowledge the assistance of the Financial Markets Authority. The Securities Commission (the predecessor to the FMA) referred this matter to the SFO in May 2011 having completed the initial analysis, resulting in an SFO investigation being commenced in June 2011.

ENDS

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