Ross couldn't keep up with withdrawals: Receivers
Ross Asset Management did not have the cash to keep up with customer withdrawals over the past five years, its receivers say.
Thursday, February 7th 2013, 3:07PM
PwC has issued its first receivers report, which says that the funds withdrawn by investors since 2007 exceeded funds contributed by $60 million.
The receivers are dealing with 18 entities relating to Ross Asset Management.
"Funds withdrawn by investors over the last five years have exceeded funds contributed by more than $60 million," John Fisk and David Bridgman said in their report.
"Due to lack of available records we have only been able to complete this reconciliation back until 2000."
Ross Asset Management was placed into receivership late last year after complaints to the Financial Markets Authority from investors who were having trouble accessing their accounts.
Ross was keeping inadequate records, the receivers said, but the group appeared to have just $9.823 million in assets despite having about $450 million in investments in its books, from 900 investors.
Other creditors include Mercedes-Benz Financial Services Limited, which was owed $201,000 for a car, although the receivers said that had been repossessed and the collateral discharged.
Other debts included $8000 to trade creditors and $20,000 to employees and Inland Revenue.
The extent of any distribution to unsecured creditors and investors is yet to be determined.
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