Blow for Ross investors

The liquidators of Ross Asset Management had been seeking to clawback $3.8 million paid to three investors before the alleged Ponzi scheme collapsed. But they said today that might not be possible.

These transactions are considered to be voidable under the Companies Act. A small number of investors received significant returns from Ross, while most lost money.

PricewaterhouseCoopers today updated its information for investors, saying that legal advice has indicated that it may not be viable under New Zealand law to claim that “profits” were stolen property and should be returned.

“There is no general principle of law that once money or property is shown to be stolen it can automatically be recovered from the recipient.”