Controversial finance company Validus goes to court in Auckland against finance watchdog

Validus, the highly controversial finance company that has been the subject of warnings from New Zealand and Australian financial watchdogs, has gone to court in Auckland.

The multi-level marketing scheme Validus appeared in the Auckland High Court against the Financial Markets Authority on Wednesday morning.

The court has granted a suppression order, which means that details of the dispute are kept secret.

As Kaniva News has reported before, Validus has made inroads into the Tongan community in New Zealand and has established a foothold in Tonga.

Validus has been the subject of several warnings by financial authorities in New Zealand and Australia. In February this year the FMA warned that there was a real risk of investor harm arising from activities of Validus and its associated persons, which it described as “dishonest and misleading.”

In February the Financial Markets Authority banned Validus from making any offer to sell, accept applications, advertise any financial products or services under the Validus name.

It also bans any supply of financial advice.

The company recently temporarily suspended withdrawals.

Validus is registered in Delaware in the United States, but has its headquarters in Dubai in the United Arab Emirates. It claims to have 500,000 members in 190 countries.  

The company began to emerge in New Zealand at the beginning of 2022.

Despite repeated warnings about the company, some die hard Tongan supporters in Australia and New Zealand are still promoting the company.

Some of them flew to Dubai last month to attend a big function there by the company. Photos and videos shared to Facebook showed some Tongans with backdrop logos of Validus and Tongan flags at the event.

There were also videos showing one of the leading Tongan supporters of the company in Australia, Timote Makaui, promoting an event organised for Validus last week.

In February Makaui dismissed the FMA’s warnings about the company as “rubbish.”

For more information

Details of Validus-FMA court action kept secret

Validus suspends payment withdrawals, downplays concerns

Validus promoter dismisses regulator’s warnings as ‘rubbish’