Thursday 29th August 2013 |
Text too small? |
David Ross, former manager of Ross Asset Management, pleaded guilty to five charges laid by the Serious Fraud Office and three charges by the Financial Markets Authority in the Wellington District Court and has been remanded in custody.
Ross faced four charges of false accounting and one of theft by a person in a special relationship. He had previously been charged on three counts in June.
The SFO charges alleged that Ross conducted "a Ponzi scheme which he disguised by falsely reporting clients' investments," according to a statement from the SFO. "Large portions of client portfolios shown as invested through a broker 'Bevis Marks' were fictitious and never existed, resulting in an overstatement of investment positions by more than $380 million."
More than 1,200 RAM client accounts were affected.
Judge Geoffrey Ellis remanded Ross in custody until Oct. 24 to set a sentencing date and ordered sentencing and reparation reports.
Ross Asset Management's assets were frozen and receivers appointed last year by the Financial Markets Authority after the watchdog received complaints about delayed or non-payment of investor funds. Ross wasn't available in the early days of the investigation due to his hospitalisation under the Mental Health Act.
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes