20 Nov 2012

SFO probes Ross funds failure

7:58 am on 20 November 2012

SFO investigating Ross Asset Management failure

Serious Fraud Office investigators have started a formal probe of the failure of Ross Asset Management.

The fund manager was raided by the Financial Markets Authority earlier in November and a receivers' report into the business by PricewaterhouseCoopers says only $10 million of $449 million has been found so far.

SFO staff say the information available indicates there are reasonable grounds to believe that serious fraud may have been committed.

The company's owner, David Ross, is in hospital.

The Financial Markets Authority began its investigation, following two complaints from investors on the same day, which a spokesperson for the authority says is quite unusual.

SFO acting chief executive Simon McArley says his office is working with the FMA and the receivers to determine whether there has been criminal offending.

Mr McArley says if there has been, Mr Ross may be prosecuted.