FMA files criminal charges over alleged fake FAP licence
The Financial Markets Authority has charged Auckland man Yuen Pok (Paul) Loo with fraud, operating illegally as a financial adviser and ignoring a previous FMA stop order.
Tuesday, May 23rd 2023, 2:55PM
by Kerry Meadows-Bonner
Loo faces a raft of charges including using a forced document under the Crimes Act, giving financial advice without being registered under the Financial Service Providers (FSP) Act, and failing to comply with a previous FMA stop order under the Financial Markets Conduct (FMC).
If found guilty he faces maximum penalties of 10 years in prison under the Crimes Act, 12 months imprisonment and/or a fine of up to $100,000 under the FSP Act, and a fine of up to $300,000 under the FMC Act.
The FMA accuses him of forging an FMA letter purporting to grant his company, Wisdom House Investment Partners, a full financial advice provider (FAP) licence and then sending it to clients.
The charges also relate to Loo providing financial advice without being registered as required under the FSP Act and breaching FMA stop orders by continuing to contact clients and provide financial advice.
Last August the FMA issued a permanent stop order against Loo and Wisdom House, for which Loo is sole director and shareholder, last August. After enforcing the stop order it opened a criminal investigation against him.
His first court appearance was in the Manukau District Court on May 22 when he was remanded without plea until June 13 2023.
Wisdom House has previously held a transitional FAP licence which was cancelled by the FMA in 2021 after Loo engaged in serious misconduct at his previous employer FoxPlan.
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