Last update: 06-Dec-2013 12:31 am
Friday, December 06, 2013
Trinidad & Tobago Guardian Online
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Guilty plea in US$300m New Zealand Ponzi scheme
WELLINGTON, New Zealand—A New Zealand man has pleaded guilty to running a US$300 million Ponzi scheme, the country's largest ever. Former Wellington financial adviser David Ross pleaded guilty Thursday to five charges of false accounting and theft. The 63-year-old has been jailed pending his sentencing in October.
Regulators say 1,200 investors lost paper returns of more than 380 million New Zealand dollars ($296 million) in the scheme. Serious Fraud Office acting manager Graham Gill said their out-of-pocket losses were at least NZ$115 million. Ross first began managing funds in 1989. Regulators last year suspended his authorisation to act as a financial adviser and his company, Ross Asset Management, was forced into bankruptcy. Gill said Ross reported returns on clients' investments which never existed.
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