She pleads guilty to eight of 15 charges
A former financial adviser is facing multiple dishonesty charges brought by the Financial Markets Authority (FMA) following an investigation into her conduct.
Natalie Ann Carter, a former Hawke’s Bay-based mortgage broker, faces charges, including making a false document, obtaining by deception, using forged documents, obstructing the exercise of FMA’s powers, and making false or misleading statements.
Of the 15 charges filed against her in the Napier District Court, Carter pleaded guilty to eight: two counts of making a false document under sections 256(1), and (2) of the Crimes Act (x2), two counts of obtaining by deception under section 240 of the Crimes Act (x2), two counts of attempting to obtain credit by deception under sections 72 and 240 of the Crimes Act (x2), and two counts of using forged documents under section 257(1)(b) of the Crimes Act (x2).
In a media release, FMA alleged Carter fabricated various documents, including fake pay slips, contracts, and employment verification forms from fictitious employers between 2018 and 2020, with the intention of securing home loans for herself and two clients. These fraudulent activities resulted in seven home loan applications, collectively valued at $2.91 million, it stated. Out of these applications, at least three were approved, amounting to $1,087,700 in total.
Following the termination of her employment in January 2020, concerns related to Carter’s actions prompted FMA to initiate an investigation, during which it was alleged Carter had engaged in activities aimed at misleading, deceiving, or attempting to deceive FMA regarding the extent of her alleged misconduct.
In April 2021, Carter sought to join another brokerage in order to work under the firm’s Financial Advice Provider license as an authorised body, using a company she owned. FMA claimed that during the application process, Carter made false or misleading statements on two FMA documents, which are required when an authorized body joins an FAP license holder. The allegations included her failure to disclose an ongoing investigation for dishonesty and a misrepresentation of the nature of FMA’s investigation.
The lead charge under the Crimes Act holds a maximum penalty of 10 years’ imprisonment. The charge for false or misleading statements 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 holds a maximum penalty of a $300,000 fine.
Carter has elected a judge-alone trial for the seven charges she pleaded not guilty to, with an administrative hearing scheduled for her next appearance on Dec. 14.
The offences Carter pleaded not guilty to include four counts of making false documents under sections 256(1) and (2) of the Crimes Act, one count of transferring a false document under section 256(5) of the Crimes Act, one count of obstructing the exercise of the FMA’s powers during an investigation under section 61(1)(e) of the Financial Markets Authority Act 2011, and one count of making false or misleading statements under section 512 of the Financial Markets Conduct Act 2013.
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