A recent report confirmed the arrest of a financial adviser who duped investors, including his close friends. It was shocking to know that some $4.7 million has been cheated on by Paul Cherry, who is in police remand. He has been charged with cheating and misleading investors at the North Shore District Court. He used to work at Investment Solutions in Albany, Auckland.

It was told by Serious Fraud Office prosecutor Todd Simmonds that the accused sucked over $1.2 million of the money cheated, for his business. In addition, some $583,000 of investor money was used for personal purposes and $2.7 million for paying back other investors.

Moreover, Cherry had expressed to meet the investors in a restorative justice conference in case they want to resolve the issue, however, Community magistrate Diane Hale left it for the claimants to decide if they really wanted to meet him or not.

"I never got statements. I just let it cruise because I trusted him", said one of Cherry's victims was Pete Moir, who relied on him way too much and has now lost his house too. "I'm going to lose my house".

It's not the first time that such an incident is being heard where financial advisors dupe their close family and friends only.