Institute of Financial Advisers cans Cant

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The Institute of Financial Advisers has terminated the membership of suspended member Neville Cant after his conviction on June 9 2010 for offences against the Crimes Act 1991 and the Securities Act 1978.

Thursday, November 4th 2010, 11:16PM

by Benn Bathgate

Cant was sentenced to 14 months in prison and ordered to pay repatriation of $100,000 and fines of $80,000 by the Oamaru District Court back in June.

Cant first ran afoul of the Institute back in November 2009 when he was put on interim suspension and "named and shamed" after failing to respond to three separate client complaints.

The more serious charges in June, which led to his suspension and eventual termination, related to the theft of $100,000 and fraud charges over two forged letters sent in an attempt to disguise the fact he has not invested the $100,000 as requested.

Cant had taken the sum from a Timaru couple to invest in a commercial property development, and had them deposit the cash into his business account.

He then transferred the bulk of the cash into a Queenstown development he had a 10% shareholding in, losing the money when the market crashed.

As part of his membership termination Cant was also fined $10,000 by the Institute and charged $3,500 plus GST to cover the costs of the disciplinary process.

In its ruling on the termination the Institute said "The seriousness of Mr Cant's offences warrants the termination of membership with immediate effect, the imposition of a fine as well as an order for costs."

At the time of his sentencing Crown prosecutor Andrew McRae said the imposition of a custodial sentence was necessary in order to protect the community and to act as a deterrent to "like-minded members of the financial advisers' community."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

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