7 Sep 2012

Former director admits defrauding investors

9:38 pm on 7 September 2012

A former Auckland investment and financial advisory company director has admitted to defrauding investors of $5 million.

Evan Paul Cherry, 53, pleaded guilty in the North Shore District Court to four charges laid by the Serious Fraud Office.

The charges relate to the misuse of investor funds and false statements in investor reports administered by Mr Cherry while he was director of several financial advisory companies including Investment Solutions Ltd.

The SFO says the companies received $9 million from investors, and more than half of that was misused.

It says between 2001 and 2007, Mr Cherry used funds to repay other investors' investments for personal use, to purchase shares, to pay off personal loans and to buy a boat.

Cherry has been remanded in custody until sentencing on 11 December.