Criminal charges filed against former investment advisor David McEwen

David McEwen Photo: Screenshot / YouTube

• The FMA alleges David McEwen failed to comply with a banning order
• It is believed he has lived abroad since November 2023
• The FMA says he did not attend court but entered a not-guilty plea

Criminal charges have been filed against a former Auckland investment advisor for failing to comply with a banning order by the financial regulator.

The Financial Markets Authority (FMA) alleged David McEwen, who was banned from carrying out his work in December 2023, failed to comply with the stop order by continuing to make offers and accept contributions for financial products.

The FMA believed McEwen had been living abroad since November 2023 and entered a not-guilty plea.

The charges were filed in the Auckland District Court and the FMA said he did not attend court.

FMA head of enforcement Margot Gatland said the authority was concerned McEwen was "continuing to flout the prohibitions of the stop order".

"I strongly recommend that investors contacted by Mr McEwen or entities associated with him, in relation to the offer of a financial product, report it to the FMA," Gatland said.

Alleged dishonest and misleading activity

McEwen was a business journalist prior to his career in investment.

According to his LinkedIn profile, he worked for well-known publications, including the Financial Times, National Business Review and Reuters.

He later founded his advisory firm, Stockfox, and was a director of McEwen & Associates.

The FMA issued the banning order against McEwen in December 2023, saying he made inaccurate statements about the holding of shares on behalf of investors.

It said sale and purchase agreements relating to offers of financial products promised investors a return in the form of more ownership. However, it was unclear how this promise could be enforced because the company issuing the ownership was not directly involved in the agreement.

Furthermore, it alleged that communications were sent out to investors that made unsubstantiated claims about the value of shares and assets held in the relevant companies.

The FMA said the financial products included convertible note agreements, shares and options to acquire units in limited partnership agreements.

The banning order prohibited McEwen from carrying out various investment services.

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