Fraudster's beach house sells

HAMISH MCNICOL AND DAVE BURGESS
Last updated 05:00 29/07/2014

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Home & Property

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A beach house previously owned by fraudster David Ross has sold for $138,000 over its rateable value, with all the money from the sale of the property going to Ross's defrauded investors.

Liquidator John Fisk, from PwC, confirmed the beachfront property had sold for $828,000 but would not reveal the purchaser, citing confidentiality issues.

The beachfront property in Days Bay, near Eastbourne, was described as having stunning views across the harbour toward Wellington City, two bedrooms and two living areas with a large deck.

Professionals real estate agent Stephen Lee said there had been "reasonable interest" in the house, which had a rateable value of $690,000. Offers closed in late June.

RAM Investment Group head Bruce Tichbon said the sale of the property over the rateable value "had to be a tiny morsel of good news".

In November, Ross was jailed for 10 years and 10 months for running a fraudulent scheme in which private investors lost about $115m.

His company, Ross Asset Management (Ram), fleeced more than 700 investors through portfolios in which they thought they had more than $380m.

Another of Ross's properties, a lavish mansion in Lower Hutt, eventually sold for $1.77 million earlier this year, having gone to the market twice.

It had had a rateable value of $2.2m.

Half the proceeds of this sale went to his wife, Jillian, upsetting his victims.

The third and final property formerly owned by Ross has still to be sold.

It would potentially recoup about $175,000 for swindled investors.

Bayleys real estate agent Adrian Denniston said it was one of the better sections available on the Riversdale Terrace subdivision and he expected there would be good interest in it.

The 1321-square-metre section offers "sensational unrestricted views" and has a rateable value of $175,000.

Ross had bought the Riversdale property in 2006, but it was not built on.

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- The Dominion Post

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