More charges for ex-finance advisor

Former financial adviser David Ross has been charged with further offences by the Financial Markets Authority, two weeks after the Serious Fraud Office alleged he operated a $400 million Ponzi scheme.

The FMA said today it had charged Ross with providing a financial service when he was not registered to do so.

The offence carries a maximum penalty of 12 months' imprisonment or a $100,000 fine.

He was also charged with knowingly making false or misleading statements to the FMA to get authorisation as a financial adviser.

A third charge alleges he supplied information or produced documents to FMA which he knew to be false or misleading. The latter two charges carry maximum penalties of $100,000 and $300,000 respectively.

FMA head of enforcement Belinda Moffat said the charges sent a strong message that providing false information to the FMA had serious consequences.

Ross will appear in the High Court in Wellington next Friday.

On June 13 the SFO laid charges against Ross alleging he conducted a Ponzi scheme which he disguised by falsely reporting clients' investments. They allege that large portions of client portfolios shown as invested through a broker, "Bevis Marks", were fictitious and never existed, resulting in an overstatement of investment positions of more than $380 million.