More than 70,000 investors joined a KiwiSaver scheme that was promoted in a misleading way over almost two years, a court has been told.
The scheme was offered by Huljich Wealth Management New Zealand Ltd which has pleaded guilty to Securities Act charges in the Auckland District Court on Tuesday.
The Huljich Wealth Management KiwiSaver scheme was promoted in two prospectuses and six investment statements between May 2008 and February 2010.
The documents failed to disclose that the listed investment returns had been boosted with money from managing director and chief investment officer Peter Huljich.
A summary of facts presented in court said 74,000 members joined the scheme in the period the misleading information was distributed.
Huljich, of Auckland, admitted one charge and faces a maximum penalty of $300,000 when he is sentenced in on 8 December. The company will be sentenced on two charges.