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David Ross released from hospital

Thursday 22 Nov 2012 1:09p.m.

David Ross released from hospital

Wellington fund manager David Ross, whose businesses have been frozen after missing investor payments, has been released from hospital and will "co-operate fully" with all inquiries into his business.

Mr Ross was released from hospital on Thursday after receiving compulsory treatment under the Mental Health Act, according to a statement released by legal firm Chapman Tripp.

Through this time, Ross was unable to assist the investigations, which have found his funds management appeared to have the characteristics of a Ponzi-style scheme.

"Through his lawyers, Mr Ross has now undertaken to co-operate fully with the Financial Markets Authority (FMA), the receivers, and the Serious Fraud Office (SFO)," the statement said.

"While these matters are the subject of official inquiries, Mr Ross and his family will be making no further comment."

The SFO launched a formal investigation this week, having helped the FMA with its own inquiries since October 25.

Earlier this month, John Fisk and David Bridgman of PricewaterhouseCoopers were appointed receivers and managers and have recommended all of the Ross-related entities be placed in liquidation.

Mr Ross managed funds on behalf of 900 wealthy individuals, with management fees averaging $4.4 million a year for the last three years.

The PwC investigation found inadequate record-keeping and has been unable to source much of the documentary evidence for trading and investment holdings that it needs to complete a full picture of what looks to have the characteristics of a Ponzi-style scheme, where investors were paid out at least in part using other investors' funds.

The Ross group's database purports to show investments worth $449.6m, of which $152.4m is said to be held in Australian investments, another $136.1m in Canada, some $156.4m in the US, $3.8m in New Zealand, and $943,332 elsewhere.

However, assets worth just $10.2m, and $200,000 in cash deposits, had been identified in the receivers' initial searches.

Are you an investor in Ross Asset Management? Contact us on news@tv3.co.nz.

NZN

 
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