New Zealand Financial Markets Authority secures High Court orders for NZD 126,214 investor compensation, NZD 142,500 penalty and a six-year ban over misleading share offer

The New Zealand Financial Markets Authority (FMA) has obtained High Court orders against Rangi Wyatt Stephen Savage Senior requiring him to pay NZD 126,214 in compensation to investors and a NZD 142,500 pecuniary penalty for breaches of the Financial Markets Conduct Act 2013. The Court found he made false or misleading representations and made and processed a regulated public offer of shares without a Product Disclosure Statement (PDS). The proceedings related to a public offer of shares in The Powder Shed Tokoroa Limited, where Mr Savage was the sole director. The Court found that from April to July 2020 he promoted the offer through online presentations and social media videos, including claims about having a suitable site, a major contract, financial backing, and a substantial dividend within 12 months, none of which could be substantiated. More than 160 investors bought around 65,000 shares at USD 1.20 per share, paying in USD or cryptocurrency, with the amount obtained equating to about NZD 126,000; bank records showed transfers to Mr Savage’s personal account and to meet debts and expenses of another company he incorporated. Justice Downs also imposed a six-year banning order prohibiting Mr Savage from being a director or promoter of an entity in New Zealand or being involved in its management, and ordered that compensation be paid to the FMA for onward distribution to investors.