A receivers report submitted to the High Court today revealed that the PriceWaterhouseCoopers team assigned to investigate the firm and its related entities had found only $10.2 million of the $449.6 million the company’s records show has been invested on behalf of 900 investors, with 1720 accounts.

PwC said: “There is a significant gap in the identified market value of the Group’s investments as against the amounts reported in investors’ portfolios.”

It said it was likely the historical returns advised to investors were exaggerated and possibly fictitious.

“The actual cash loss that may eventually be suffered by the remaining investors will differ from the amounts currently showing as the ‘value’ in individual investors’ portfolios.”

PwC recommended the Ross Group entities be placed in liquidation.

The team had been working to verify the Ross Group’s assets in New Zealand and overseas and analysing records to determine the position of investors’ portfolios.

The investigation started on October 25, after the Financial Markets Authority received complaints from investors who were unable to withdraw their funds.

A search warrant was executed on David Ross’s home and office and his assets were frozen on November 2.

FMA chief executive Sean Hughes said the receivers’ report would be difficult reading for investors with funds under Ross Asset Management’s control.

“The events of the past two weeks demonstrate that FMA will take swift action in response to investor complaints and we would encourage people to come forward if they have concerns about the security of their investment. They should be confident that we will listen and act where appropriate,” Hughes said.

He said it was understood that Ross had been in business for more than 10 years.

“Our end goal is the best possible outcome for the investor, although we realise that in this instance it would appear that the remaining assets are limited.”