Guilty plea in $384m New Zealand Ponzi scheme
WELLINGTON (AP) - A New Zealand man pleaded guilty on Thursday to running a US$300 million (S$384 million) Ponzi scheme, the country's largest ever.
Former Wellington financial adviser David Ross pleaded guilty to five charges of false accounting and theft. The 63-year-old has been jailed pending his sentencing in October.
Regulators say 1,200 investors lost paper returns of more than NZ$380 million (S$378 million) in the scheme. Serious Fraud Office acting manager Graham Gill said their out-of-pocket losses were at least NZ$115 million.
Ross first began managing funds in 1989. The Serious Fraud Office believes from its investigation that he began running the Ponzi scheme about mid-2000.