David Ross charged over $400 mill ponzi scheme

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.