Published 7 September 2012
Albany financial advisor Evan Cherry, 53, pleaded guilty in the North Shore District Court today to 4 Crimes Act charges relating to millions of dollars of investor funds.
The Serious Fraud Office began investigating Mr Cherry in 2011 after investors began complaining. The charges related to the misapplication of investor funds and false statements in investor reports by Mr Cherry while he was the director of investment & financial advisors Investment Solutions Ltd, ISL Nominees Ltd, Trading Strategies Ltd, ISL Strategic Investments Ltd & ISL Strategic Investments 100 Ltd.
Fraud office chief executive Adam Feeley said 175 investors paid $9 million into ISL companies. Most of the offending occurred between 2001-February 2007, when $5 million was invested contrary to investment instructions. Most of the investors had transferred to investments offered by Mr Cherry’s personal advisory business from those of a large institutional investment company when he terminated his association with that institution.
Mr Cherry has been remanded in custody until sentencing on 11 December.
Investment Solutions Ltd was wound up on 15 December 2011 on the application of theRegistrar of Companies. Mr Cherry was a director of ISL Strategic Investments Ltd (removed from register July 2011), Sportsbuddy Ltd, Sportsbuddy Global Ltd & Trading Strategies Ltd, and resigned in June-July 2011 from Enviro-Energy Ltd, Enviro Energy Holdings Ltd, Enviro-Energy (Pukete) Ltd, Enviro Energy Systems Ltd & ISL Strategic Investments 100 Ltd.
Investment Solutions liquidators Vivian Fatupaito & Glen Gernhoefer (WHK Ltd) said in their second report on the company they hadn’t identified any evidence in their review of company records “to suggest that investor funds were ever receipted or dealt with by the company itself. From our investigations, it appears that ‘Investment Solutions Ltd’ was used as a trading name for a private investment fund involving other entities related to Mr Cherry”.
Mr Cherry & his wife Karen held 62% of Enviro-Energy last year but, after a creditors’ compromise in June, a large number of new shareholders were introduced and the Cherries’ stake fell to 12.1%. Enviro-Energy’s website indicates it’s ready to manufacture its thermal drying system, which would eliminate sewage sludge.
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Attribution: SFO release, Companies Office documents, story written by Bob Dey for the Bob Dey Property Report.