The liquidators of convicted fraudster David Ross's Ponzi scheme are trying to claw back more money from investors who got their cash out early.
David Ross was jailed in November 2013 for 10 years and 10 months for operating a fraudulent scheme in which 700 investors lost about $115 million. It was New Zealand's single biggest fraud.
David Ross. Photo: RNZ
Now liquidators are stepping up their efforts to claw back from investors who got out before the company fell over.
A successful clawback test case against one of three investors who was paid out by Ross before his company collapsed, has resulted in liquidators PWC making claims against 25 further former clients
PWC said it aimed to claw back what it described as fictitious profits' made on investments in Ross Asset Management.
As well as the 25 former investors, it is understood that 100 others could yet receive letters from PWC.
The amount of money that could be clawed back from former investors could total as much as $82 million or as low as $43 million, PWC confirmed.
Bruce Tichbon, who heads a group supporting those who lost money in Ross Asset Management, said if the liquidator was successful and secured the larger figure, it would go a long way to recovering the $115 million lost by investors.
But he said, it was a very confused legal situation.
He told Nine to Noon that New Zealand law appeared to be unique and did not seem to be working properly.
"The law is incredibly confused," he said.
"One of the many layers of confusion is that the money appears to remain the asset of the investors.''
He said it was an utterly confused situation which, three years on, was no closer to being resolved.
He said the case would probably spend years before the court because there was no law to unwind the Ponzi scheme in a proper manner.
"The law remains inadequate," he said.
