The Supreme Court in New Zealand has ruled that a Wellington lawyer must pay liquidators a whopping $100,000, based on interest that the lawyer earned on profits from a dodgy ponzi scheme.
Wellington lawyer Hamish McIntosh had invested $500,000 in Ross Asset Management. He withdrew $954,047 from the business in 2012, which landed him a rather tidy profit of $454,047.
However, it transpired that RAM had been fraudulently set up as a ponzi scheme by David Ross who had fleeced investors out of $115 million. In 2013, Ross was sentenced to jail for over ten years.
RAM's liquidators, PWC, went after investors who had profited from Ross' fraudulent scheme. In May this year, the Supreme Court upheld a decision that McIntosh could keep the $500,000 of his initial investment, but would have to pay back the $454,047 of "fictitious" profits he earned to PwC,.
The Supreme Court has now also ruled that McIntosh should pay interest on the profit, which will come to around $100,000. Ouch.
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Wellington lawyer Hamish McIntosh had invested $500,000 in Ross Asset Management. He withdrew $954,047 from the business in 2012, which landed him a rather tidy profit of $454,047.
However, it transpired that RAM had been fraudulently set up as a ponzi scheme by David Ross who had fleeced investors out of $115 million. In 2013, Ross was sentenced to jail for over ten years.
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McIntosh: 2012 |
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McIntosh: 2017 |
The Supreme Court has now also ruled that McIntosh should pay interest on the profit, which will come to around $100,000. Ouch.