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Ross investors face 'terrible' legal fight

Tuesday 04 Dec 2012 11:08a.m.

Ross investors face 'terrible' legal fight

By Jonathan Underhill

Investors in Ross Asset Management face a "terrible legal battle" to recover their funds if investigations by regulators show principal David Ross was running a Ponzi scheme, says investor spokesman Bruce Tichbon.

The receivers of the Ross group on Monday applied to the High Court to liquidate the companies and a hearing date has been set for December 17.

Receivers have uncovered only about $11 million of the $449.6m purported to be under management.

Mr 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 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 Mr Tichbon, who has lost almost $1m.

"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."

Mr Tichbon represents more than 50 per cent 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.

Receivers John Fisk and David Bridgman of PwC on Monday 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.

NZN

 
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