Claimants representing more than 552 investors who lost money in the Ross Asset Management (RAM) Ponzi scheme have reached settlement with ANZ in their claim the bank was negligent in their responsibilities.
David Ross was jailed for up to 10 years and 10 months in prison in November 2013, after pleading guilty to a series of charges related to his running of RAM, a Wellington investment management firm.
Hundreds of investors believed Ross was managing accounts with investments worth, collectively, almost $380 million, but instead, he had been running a massive Ponzi scheme, and liquidators found only a fraction of the money investors believed they were owed.
ANZ provided banking services to Ross for more than 20 years.
About 700 investors lost a total of $115 million when David Ross’ company collapsed in 2012.
Of the investors, 552 brought a claim against ANZ and argued the bank did or should have known Ross was misappropriating their funds.