Background
The case concerns David Robert Gilmour Ross, founder of Ross Asset Management Limited (RAM), and relates to what authorities described as New Zealand’s largest Ponzi scheme, involving hundreds of millions of dollars and more than 900 investors.
Background and Investigation
The investigation commenced in October 2012 after the Financial Markets Authority (FMA) received complaints from investors who were unable to withdraw funds despite repeated requests. Subsequent inquiries revealed significant discrepancies between reported and actual investment assets.
On 6 November 2012, the High Court in Wellington froze the assets of David Robert Gilmour Ross and multiple related entities, including Ross Asset Management Limited, Bevis Marks Corporation Limited, Mercury Asset Management Limited, and others. PwC partners John Fisk and David Bridgman were appointed as receivers and managers.
Asset Recovery and Liquidation
In the early stages of receivership, the receivers reported locating only $10.2 million in assets out of purported investments totaling $449.6 million, held on behalf of more than 900 investors across 1,720 accounts.
In December 2012, the Court ordered the liquidation of four Ross Group entities, and PwC issued its first liquidators’ report later that month. Throughout this period, the FMA maintained active engagement with investor representatives and provided regular updates.
Criminal Proceedings
In June 2013, charges were laid in the Wellington District Court by the Serious Fraud Office (SFO), alleging that Mr Ross operated a $400 million Ponzi scheme, following a joint SFO–FMA investigation. Additional charges under financial markets legislation were laid shortly thereafter.
On 29 August 2013, David Robert Gilmour Ross pleaded guilty to the charges.
Sentencing and Regulatory Action
In November 2013, Mr Ross was sentenced in the Wellington District Court to 10 years and 10 months’ imprisonment, with a minimum non‑parole period of 5 years and 5 months. The Court also ordered that reparation be paid from Mr Ross’s personal assets through the receivership. A management ban was imposed, effective until 20 November 2018.
Appeals
Mr Ross appealed the minimum non‑parole period on the grounds that it was manifestly excessive or inappropriate. On 25 June 2015, the Court of Appeal declined the appeal, confirming the sentence imposed.
Overall Significance
This case represents a landmark enforcement action in New Zealand’s financial markets, highlighting systemic failures in asset reporting, the scale of investor harm, and the coordinated response of the FMA, SFO, and the courts. It is a defining example of large‑scale investment fraud and regulatory intervention in New Zealand.
