In response to investor complaints, the Financial Markets Authority (FMA) opened an investigation into Wellington Authorised Financial Adviser Ross and his company on October 25.

A freeze was obtained on Ross’ assets and John Fisk and David Bridgman from PricewaterhouseCoopers were appointed as receivers and managers.

So far the receivers have been able to locate only $10.2 million out of a total of $450 million purportedly invested with Ross Asset Management by about 900 clients, prompting them to raise the possibility of it being a Ponzi scheme.

Acting chief executive of the SFO, Simon McArley said the Office had been working with the FMA over the past two weeks. 

The SFO began a Part II investigation under the SFO Act after an evaluation of the information now available concluded there are “reasonable grounds to believe that an offence of serious fraud may have been committed,” he said.

“We will continue to work closely with the FMA to ensure both agencies’ resources are applied effectively in a coordinated and timely manner.  We are meeting with the FMA and Mr Fisk early this week to progress that”, he said.

“The SFO notes with concern the comments made by Mr Fisk that it is likely the historical returns advised to investors may be fictitious and that what has occurred has the characteristics of a Ponzi scheme. Given the scale of the potential loss this is a matter we take extremely seriously”.

A dedicated telephone message line has been established by PwC for any investors or creditors who have an enquiry relating to Ross Asset Management (In Receivership) and related entities.

Investors with questions should continue to contact PwC.