The public ruin of David Ross

David Ross, co-founder of Carphone warehouse, was the businessman who epitomised the free-wheeling Nineties. Now his greed has been his downfall.

Old friendships are built on trust. Take David Ross and Charles Dunstone, who met at school and eventually ended up running the Carphone Warehouse, Europe's biggest mobile-phone operation. They have always remained sure of each other. As Ross once said, "We have an intimate and personal understanding of what makes each other tick." So the revelation that Ross, 43, had secretly pledged one-fifth of Carphone's shares (as well as smaller stakes in National Express, Big Yellow and the marine safety company, Cosalt) as guarantees against personal loans apparently devastated Dunstone (see below). But the scandal is also a personal tragedy for Ross. He now faces "public ruin", says the Daily Mail. The details of the affair will be raked over for months.

At its root was a simple mistake: "Ross gambled on property prices shooting ever upwards. And lost." The money he borrowed was channelled, at the top of the market, into hedge funds and a property venture, Kandahar Real Estate, launched in 2006. Kandahar's speciality was regional shopping centres, whose values have since crashed. Meanwhile, his Carphone shares are down some 75% from their peak. The upshot is that his fortune estimated at some £900m two years ago has been smashed, says The Independent. So much for his hard won "Midas reputation".

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.