Financial Markets Authority headquarters in Auckland. Photo: Google Maps
Auckland-based Wise Insurance has lost its financial advice provider (FAP) licence while its principal financial adviser faces criminal charges.
The Financial Markets Authority (FMA) deregistered Les Vela's sole director and shareholder Le Zhou (also known as Eric) over the filing of 15 health and life insurance claims for 27 non-existent people, and then received commission payments totalling $260,937.
"Under current weaker economic conditions we are seeing an increase in fraudulent activity by financial advisers, particularly in relation to insurances and mortgages," FMA executive director Louise Unger said.
"While these instances are the exception rather than the norm, the severity of the conduct makes this a priority for the FMA to address."
She said the FMA became involved following a complaint from an insurer.
"The practice of submitting insurance applications for people who do not exist is known as 'tombstoning'. Behaviour like this results in the erosion of the public's confidence in the financial advice industry.
"Financial advisers play an important role in helping New Zealanders grow their retirement savings and investments, source insurance and mortgages, protect their income and assets and support overall financial wellbeing.
"It is important for financial advisers to act ethically to maintain trust and uphold the integrity of the sector, which Zhou has failed to do."
Unger said the FMA was satisfied that Les Vela, trading as Wise Insurance, no longer met the key requirements for a market services licence under the Financial Markets Conduct Act.
Zhou would not be permitted to obtain a licence for five years.
Police arrest Zhou
Acting Detective Senior Sergeant Ben Bergin from the Waitematā financial crime team said police arrested and charged Zhou in July 2025.
"He faces three representative charges of forgery in the North Shore District Court, reappearing in October," Bergin said.
"Police are continuing to see an increase in people using their employment or access to systems to commit offending.
"Abusing these systems for personal gain is a criminal offence, and Police are continuing to hold offenders to account."
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