NEW ZEALAND’S single biggest fraudster is no longer a member of the New Zealand Institute of Chartered Accountants, which found it “difficult to imagine more serious offending” than his.

David Robert Gilmour Ross, whose company Ross Asset Management, fleeced at least 700 investors, was jailed last November for 10 years and 10 months for running a fraudulent scheme in which investors lost about $115 million.

At a NZICA disciplinary tribunal hearing last week he was charged with being convicted of offences punishable by imprisonment or fine that reflected on his fitness to practice accountancy and brought the profession into disrepute.

A decision released by the professional body yesterday ordered that Ross be removed from the institute’s register of members.

He was not represented and entered no plea at the hearing.

The tribunal found “it difficult to imagine more serious professional misconduct than this”, which was reflected in Ross’ sentence, it said.

Ross had admitted running a Ponzi scheme that he disguised by falsely reporting clients’ investments.

Despite the severity of the charges, the tribunal ordered no monetary penalty as it would dilute funds available to investors.

Ross was ordered to pay full costs of $7200 to the institute for the expense of the hearing.

It also ordered full publicity and said Ross had 14 days to appeal against the decision

Source: Accountants turf out disgraced Ross

Reported by Hamish McNicol

The Dominion Post. Friday 25 April 2014. P. B7.

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Background to story see earlier postings by SPCS:

INTERIM SUSPENSION OF DAVID ROSS’ MEMBERSHIP OF NZICA ANNOUNCED 16 January 2013

Wellington’s David Ross, at the centre of the collapse of a suspected Ponzi scheme involving about $450 million, was stripped of his membership of the Institute of Chartered Accountants (ICA), but it was only an “interim suspension”. David Robert Gilmour Ross lost his institute membership after a hearing held in secret in the middle of December 2013. The “interim suspension” was announced by the ICA disciplinary tribunal on 16 January 2013.

Published 17/01/13

David Ross stripped of Institute of Accountants (ICA) membership

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Published 17/11/12

Ross Asset Management case – involving a suspected Ponzi scheme – raises audit question

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Published 13/12/12

Securities Commissioner told of Ross Asset Management Ponzi scheme concerns but took no action