Former financial adviser Murray McClune has been jailed for more than three years after pleading guilty to stealing $1.7 million from his elderly clients.

McClune admitted two charges of theft by person in a special relationship in June following an investigation by the Financial Markets Authority (FMA).

Between 2016 and 2018, while working as a registered financial adviser, McClune offered investment opportunities to two couples in retirement who had known him for over 40 years.

However, McClune would go on to spend the investment funds he received on various personal and business expenses, including purchasing a home in his and his wife’s name, food and entertainment, travel and overseas expenses and cash withdrawals.

While much of the funds were eventually returned to the investors, both investors were left with some money owing.

FMA head of enforcement Margot Gatland said McClune’s conduct was “both deliberate and dishonest, and involved a gross breach of trust”.

“The conduct arose in the course of his role as a financial adviser, a position he used to take advantage of his clients.”

McClune was also permanently banned from holding directorships, management positions, and providing financial advice and client money and property services, which he did not oppose.

“Banning McClune ensures protection of the public and deters others from committing breaches,” Gatland said.

McClune has a previous conviction for a charge of obtaining by deception.

His victim in that case was well-known to him as a good family friend, and McClune was a financial adviser to her and her late husband for over 40 years.

After her husband died in 2007, McClune advised her that he could make an increased gain on her superannuation savings which would be ready for her when she turned 65 in 2015.

Between 2009 and 2010, McClune made withdrawals from his victim’s investment funds, taking $203,500 over an eight-month period.