Plain language law

New Zealand law explained for everyone

Crimes Act 1961

Crimes against rights of property - Crimes involving deceit

242: False statement by promoter, etc

You could also call this:

“Lying to trick people into giving money or buying things for a company is against the law.”

If you make or agree to make or publish a false statement about any group, whether it’s officially registered or not, and whether it’s already formed or going to be formed, you could go to prison for up to 10 years. This applies if you intend to:

Make someone buy a financial product as defined in the Financial Markets Conduct Act 2013; or

Trick or cause loss to anyone; or

Make someone give or lend any property to another person.

A false statement means you either know what you’re saying isn’t true about something important, or you don’t care whether it’s true or not about something important.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330285.

Topics:
Crime and justice > Criminal law
Money and consumer rights > Consumer protection
Business > Fair trading
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241: Punishment of obtaining by deception or causing loss by deception, or

“The law decides how long someone might go to jail if they trick people to get money or cause them to lose money.”

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243: Money laundering, or

“This law explains what happens if you try to hide or use money from illegal activities.”

Part 10 Crimes against rights of property
Crimes involving deceit

242False statement by promoter, etc

  1. Every one is liable to imprisonment for a term not exceeding 10 years who, in respect of any body, whether incorporated or unincorporated and whether formed or intended to be formed, makes or concurs in making or publishes any false statement with intent—

  2. to induce any person, whether ascertained or not, to acquire any financial product within the meaning of the Financial Markets Conduct Act 2013; or
    1. to deceive or cause loss to any person, whether ascertained or not; or
      1. to induce any person, whether ascertained or not, to entrust or advance any property to any other person.

        1. In this section, false statement means any statement in respect of which the person making or publishing the statement—

        2. knows the statement is false in a material particular; or
          1. is reckless as to whether the statement is false in a material particular.

            Compare
            Notes
            • Section 242: replaced, on , by section 15 of the Crimes Amendment Act 2003 (2003 No 39).
            • Section 242(1): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
            • Section 242(1)(a): replaced, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).