Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Ross Asset investors face 'gruesome legal fight'

Ross Asset investors face gruesome legal fight if Ponzi scheme shown

By Jonathan Underhill

Dec. 4 (BusinessDesk) – Investors in Ross Asset Management face a “gruesome legal fight” to recover their funds if investigations by regulators show fund principle David Ross was running a Ponzi scheme, says investor spokesman Bruce Tichbon.

The receivers of the Ross group yesterday applied to the High Court to liquidate the companies and a hearing date has been set for Dec. 17. Receivers have uncovered only about $11 million of the $449.6 million purported to be under management.

Tichbon is among investors who put money into David Ross’s funds on the recommendation of an adviser and the Financial Markets Authority wrote in a letter to him yesterday that it was “actively engaging with such advisers and will take appropriate action where, after investigation, any breaches are discovered.”

“Some people have done very well out of David Ross,” said Tichbon, who has lost almost $1 million. “There will be a terrible legal battle between those who put more money in and those who took more money out. First it has to be determined whether or not David Ross was running a Ponzi scheme.”

Tichbon represents more than 50 percent of the affected investors. In an effort to develop a strategy he has been in contact "with the people running the Madoff unwind" in the US. He declined to give details until the plan is developed. Bernie Madoff was jailed after pleading guilty to running the biggest Ponzi scheme in US history, involving billions of dollars.

In Tichbon’s case, Ross was recommended by a friend’s accountant though others may have been steered toward the funds by another Authorised Financial Adviser.

“This is how he seemed to operate,” Tichbon said. “Why have an expensive marketing campaign when word of mouth is bringing you clients anyway.”

Receivers John Fisk and David Bridgman of PwC yesterday sought the liquidation of four Ross companies – Ross Asset management, Bevis Marks Corp, McIntosh Asset Management and Mercury Asset Management.

They also flagged the liquidation of four more companies – Dagger Nominees, Ross Investment Management, Ross Unit Trust Management and United Asset Management by way of a special resolution of shareholders, acting through the receivers. Fisk and Bridgman are seeking to be appointed liquidators.

Tichbon said he has already written off his losses and any return “would be a bonus”.

Ross, formerly a share broker, managed funds on behalf of 900 privately wealthy individuals, with management fees averaging $4.4 million a year paid in each of the last three years. Both the Serious Fraud Office and the Financial Markets Authority are investigating his companies.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news