Claw back warning for Ross investors

Investors who managed to withdraw funds in recent years from the Ross Asset Management group of companies, found to be a Ponzi scheme, have been put on notice that the liquidators may try to claw back the cash. PwC’s John Fisk and David Bridgman said they have a valid claim on any funds withdrawn from the investment scheme since December 2010 under the Companies Act on the basis investors would receive more than their entitlement under a liquidation. The liquidators also believe they can make a claim on anyone who drew funds within the past six years under the Property Law Act on the basis they were part of David Ross’s fraud. The managers weren’t able to cut deals with three investors who withdrew some $3.8 million in the lead-up to Ross Asset Management’s collapse in 2012, and expect to “imminently” file proceedings in the High Court, they said in their latest report. More in the New Zealand Herald here.