The Serious Fraud Office alleges the 63-year-old operated a $400 million Ponzi scheme.

The SFO and FMA investigation into Ross Asset Management and related entities commenced in November last year after complaints were received regarding delayed or non-payment of funds to investors.

FMA obtained asset preservation orders and orders appointing receivers and managers to the Ross Group of entities. Initial inquiries by receivers showed investments of only $10.2 million actually existed.

The charges laid by SFO allege that Ross conducted a Ponzi scheme which he disguised by falsely reporting clients’ investments.

They allege that 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 1200 RAM client accounts have been affected by Ross’s scheme.

Investor representative Bruce Tichbon said three times as many investors lost money as made money through Ross.

SFO’s acting chief executive, Simon McArley said: “The allegations made amount to serious criminal matters. However the saddest fact of all of this is the position that Ross’ clients find themselves in.”

FMA head of enforcement Belinda Moffat said the FMA would now complete its investigation under the Financial Advisers Act. “We will also shortly release best practice guidance for financial advisers providing discretionary investment management services to ensure our expectations are well understood by advisers, as well as guidance for investors considering using such services.”