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The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko – has issued a public warning about a managed investment scheme operated by Jesse Joseph Vaughan and former NZ company Crypto Partners Limited (CPL).
FMA Executive Director of Response and Enforcement Louise Unger said, “We understand that Mr Vaughan, the sole director and shareholder of formerly registered company CPL, has offered investments in a managed investment scheme (MIS) operated by CPL. He did so without holding a MIS manager licence, and without providing the required disclosure, which are both contraventions of the Financial Markets Conduct Act 2013.”
Mr Vaughan also told his investors in a newsletter that he had applied for a MIS manager’s licence, and that it was being reviewed by the FMA.
“I can confirm that neither Mr Vaughan nor CPL has ever applied to the FMA for any form of market services licence,” said Ms Unger. “One of the main purposes of the market services licensing regime is to require licensees to act with integrity, diligence and skill and in the best interests of investors using their services. We consider that CPL and Mr Vaughan’s conduct has been contrary to these obligations and investors are likely to have experienced significant detriment as a result.
“The FMA will continue to take actions when we see misconduct damaging the trust and confidence in New Zealand’s financial markets and businesses. We do this to both prevent and deter others from doing this and, in this case, to hold Mr Vaughan to account,” concludes Ms Unger.
If you are an investor in CPL, let the FMA know
If you are an investor in CPL and have not received the return of your investment, or you have recently been contacted by Mr Vaughan inviting you to invest in his business, we encourage you to report the details to the FMA.
