The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – charged a former financial adviser with multiple dishonesty offences following an investigation into her conduct.

Natalie Ann Carter, a former Hawke’s Bay-based mortgage broker, was charged with the following offences:

• Making a false document
• Obtaining by deception
• Using forged documents
• Obstructing the exercise of the FMA’s powers
• Making false or misleading statements

Ms Carter pleaded guilty to eight of the 15 charges filed against her in the Napier District Court today.

It is alleged that between 2018 and 2020, Ms Carter created various false documents for the purpose of obtaining home loans for herself and two clients. The documents were fake pay slips, contracts and employment verification forms from fictitious employers. In total, seven home loans were applied for, totalling $2.91m in value. At least three of the seven home loan applications were successful to the total value of $1,087,700.

Ms Carter’s engagement at the Hawke’s Bay-based brokerage was terminated in January 2020. The FMA was subsequently notified of several concerns, prompting an investigation. During the investigation, Ms Carter is alleged to have misled, deceived or attempted to deceive the FMA about the extent of the alleged offending.

In April 2021, Ms Carter applied to join another brokerage, with the intention of working under the firm’s Financial Advice Provider (FAP) licence as an Authorised Body, through a company that she owned. The FMA alleges that during the application process, Ms Carter made false or misleading statements on two FMA documents, which must be provided to the FMA where an Authorised Body joins an FAP licence holder. It is alleged that she failed to declare that she was being investigated for dishonesty and misrepresented the nature of the FMA’s investigation.

The lead charge under the Crimes Act carries a maximum penalty of 10 years’ imprisonment. The false or misleading statements charge under the FMC Act carries a maximum penalty of five years’ imprisonment a $200,000 fine, or both. The obstruction charge under the FMA Act carries a maximum penalty of a $300,000 fine.

In relation to the seven charges Ms Carter pleaded not guilty to, she has elected a Judge alone trial. She will next appear on 14 December 2023. This will be an administrative hearing.

Notes

The offences Ms Carter pleaded guilty are:

• Making a false document under sections 256(1), and (2) of the Crimes Act (x2);
• Obtaining by deception under section 240 of the Crimes Act (x2);
• Attempting to obtain credit by deception under sections 72 and 240 of the Crimes Act (x2)
• Using forged documents under s 257(1)(b) of the Crimes Act (x2).

The offences Ms Carter pleaded not guilty are:

• Making a false document under sections 256(1) and (2) of the Crimes Act (x4);
• Transferring a false document under section 256(5) of the Crimes Act (x1)
• Obstructing the exercise of the FMA’s powers during an investigation under section 61(1)(e) of the Financial Markets Authority Act 2011 (FMA Act)(x1); and
• Making false or misleading statements under section 512 of the Financial Markets Conduct Act 2013 (FMC Act)(x1).

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