David Ross was jailed for 10 years and 10 months for running a Ponzi scheme in which his investors lost $115 million when his business collapsed. Investors who took money out between 2010 and 2012 may have their money clawed back by liquidators. Photo / Mark Mitchell
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on any funds withdrawn from the investment scheme since December 2010 under the Companies Act on the basis investors would receive more than their entitlement under a liquidation.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.
"Subject to the outcome of the above proceedings, the liquidators intend making further demands on any investors who have received monies in the above circumstances," Fisk and Bridgman said in their report. Because a successful voidable transaction claim could potentially change an investor's net contribution position, they can't agree to final claims until all legal issues have been settled, they said.
Last month the Court of Appeal turned down a bid by Ross to reduce his 10-year, 10-month jail term, which carries a minimum non-parole period of five years and five months.
