Ross Asset liquidators claw back further $3.1m

AUCKLAND: The liquidators for Ross Asset Management clawed back another $3.1 million from investors in the six months to June 16 while increasing the pressure on those still holding out by launching more lawsuits.

To date, 182 people who invested with convicted fraudster David Ross have settled with the liquidators for a total of $19.1 million. PwC’s John Fisk and David Bridgman have invoked a clawback from transactions made when the RAM entities were insolvent.

In the report, released yesterday, they say 21 claims against investors remain unsettled and of those, the liquidators have filed legal proceedings against 13 and are in settlement talks with the remainder. That is an advance from their previous report, for the six months to December 16, when 158 investors had settled for $17.5 million and 43 claims were not settled. At that date, they had 10 lawsuits under way and were in talks with the rest.

The liquidators have benefited from a Supreme Court ruling in May last year that let Wellington lawyer Hamish McIntosh keep the principal he invested in RAM but return the fake profits. Prior to the ruling, just 54 investors had reached settlements totalling $9.7 million.

The clawback means investors legitimately owed back their money saw the amount held by the liquidators as cash in the bank rise by about $2.2 million to $18.8 million in the latest six months, although costs will eat into the funds. Total receipts for RAM for the entire period from December 2012 to June 16 rose to $24.6 million from $21.5 million six months earlier. Payments rose about $1 million to $6.9 million.

The liquidators have collected $1.8 million in fees to date for their services. Legal fees have been $3.2 million to date. — BusinessDesk