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

 


Ross Asset liquidators face hurdles in untangling mess

Ross Asset Management liquidators face hurdles in untangling mess

Dec. 24 (BusinessDesk) - PwC's John Fisk and David Bridgman have found another pitfall as they try to untangle the mess surrounding Ross Asset Management which may make it more difficult to try and recovery the missing investor funds.

The High Court in Wellington appointed Fisk and Bridgman as liquidators of Ross Asset Management last week, and the pair have found that about 40 percent of all stocks identified are held in an individual client's name, according to their first report. That means that any recovery from those specific assets may not be available to the wider pool of investors.

"We are working with the advisors and respective investors concerned to determine entitlements to these investments with the assistances of our legal counsel," they said in the report.

The duo was initially installed as receivers and managers of the operation that Fisk has previously described as having the hallmarks of a Ponzi scheme. Some 1,720 investor accounts show investments totalling $449.6 million, though Fisk and Bridgman have only been able to identify $10.5 million of assets.

"The records of the Ross Group are not of sufficient standard to immediately and accurately identify all assets and accordingly the schedule of such assets continues to change as the identification process continues and new assets are located and accurate information is obtained," the report said.

Fisk and Bridgman said they have been approached by a number of investors with queries about the impact of the receiverships on their tax situation, and they expect to have an update next year.

The liquidators back setting up a committee of Ross group creditors to represent those people owed by the fund manager, and are holding a vote to select up to seven members to join the group to represent those interests.

Investors have 13 people to choose from, including hospitality industry veteran Gary Clarke, property manager Stephen Cooper, Ross Asset investor Yvonne Cooper, Kordia chief financial officer Jason Fullerton-Smith, public servant Tom Halliburton, horticulture investor Matthew Heller, surveyor Malcolm Hughes, ex-construction firm executive Peter Macdonald, foreign affairs consultant Alan Pearson, Barrington Prince, property valuer Arthur Stewart, lawyer John Strahl, and Ross Asset investor spokesman Bruce Tichbon.

Wellington fund manager David Ross wasn't available in the early days of the investigation due to his hospitalisation under the Mental Health Act.

The various funds were frozen after a Financial Markets Authority Investigation, and the Serious Fraud Office is also inquiring into the case.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news