Sharechat Logo

Ross Asset liquidators to chase 10 investors for funds

Wednesday 17th January 2018

Text too small?

The liquidators for Ross Asset Management have filed legal proceedings against 10 former investors as it gets closer to paying jilted investors in the country's biggest ever Ponzi scheme. 

In their latest report on the Ross group, PwC's John Fisk and David Bridgman said 158 investors in the scheme have settled with the liquidators, totalling $17.5 million, and leaving 43 outstanding claims. Of those outstanding, the report says the liquidators have filed proceedings against 10 former investors and are still in negotiations with the rest. 

Fisk and Bridgman offered to settle with 160 investors for a total $21.6 million after a Supreme Court ruling in May let Wellington lawyer Hamish McIntosh keep the principal he invested in Ross Asset Management, but return the fake profits. Prior to the ruling, 54 investors reached settlements totalling $9.7 million. 

Wellington-based David Ross built up a private investment service by word of mouth, producing regular reports for shareholders indicating healthy but fictitious returns. Between June 2000 and September 2012, Ross reported false profits of $351 million from fictitious securities trading as part of a fraud that was the largest such crime committed by an individual in New Zealand.

In reality, about $100 million to $115 million of investor funds were frittered away in the Ponzi scheme, and the liquidators sought to claw back funds paid out to investors in the lead-up to the collapse, going all the way to the Supreme Court, so as to equally share the money for the 1,200 or so investors out of pocket. 

The liquidators applied to the High Court last month for directions on the model for distributions and a hearing is expected in the second quarter of this year. 

The latest round of litigation will keep the liquidation operating, and the report said it's still not possible to determine when it will be wrapped up. 

As at Dec. 15, the liquidators held cash totalling $16.7 million, including a $212,000 final distribution from the Official Assignee relating to Ross's bankruptcy. That's after legal fees of $2.6 million and liquidators' fees of $1.6 million. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares hit record amidst rebalancing, Comvita and Sky TV gain while Pushpay, A2 drop
NZ dollar heads for 0.5% weekly decline as risk aversion rises
RBNZ's Spencer tipped to stand pat in final review next week, repeat same message
Lyttelton Port rejects union claims as strike planned for next week
Storm CEO Deborah Caldwell buys women's clothing chain from Hallenstein
Govt to invest $5 mln in Northland wharves through regional fund
Veritas shareholders vote in favour of Mad Butcher sale
Failed fashion chain Andrea Moore & Co 'significantly overstated' value of inventory by $3.3M
UPDATE: NZ dairy manufacturer plans to list on ASX to raise up to A$20M for expansion
Bay of Islands Airport terminal upgrade to get $1.7M from govt's provincial growth fund

IRG See IRG research reports