EXCLUSIVE Victim of First Guardian super fund collapse speaks out on the horror toll of losing her life savings at 39
Danielle Adams, at 39, can still handle working as a gardening and lawn maintenance labourer in Brisbane and the Gold Coast for a company with local government contracts.
But she shudders at the thought of delaying her retirement and working into old age for another 28 years, until she can get the age pension at 67.
All because she trusted bad financial advice.
'I get to work in my home area and keep the public spaces beautiful. It is a physically demanding job but rewarding,' she told Daily Mail Australia.
'I knew retirement is very far off in the distance for me so I had a future plan where I was hoping to wind down to part time work if my body begins to fail me, however with this blow, winding down will not be possible.'
Her problems began in October 2023 when she had contacted Reilly Financial asking for advice on super after a referral from Super Wise.
'I was not after ridiculous growth, but steady growth and lower fees,' she said.
Rhys Reilly, who ran Reilly Financial, still operates in Perth and was previously associated with Venture Egg, a marketing firm which First Guardian's parent company Falcon Capital had paid millions to aggressively sell its superannuation product.
Ms Adams said she had lost the $80,000 in super she had built up over more than two decades of work, after agreeing to put her savings into First Guardian's growth strategies retirement product, via Diversa's AusPrac platform.
Her account was frozen in March when the Australian Securities and Investments Commission made a Federal Court order to liquidate the assets of First Guardian Master Fund and its parent company Falcon Capital.
'Very stressful time but I have not lost as much as others have. I currently have 80k frozen and lodging all my formal complaints,' she said.
'Thank you for working on getting the word out about the highly deceitful and illegal web of scums that are involved.'
She is one of 6,000 people who have lost their super, as she and her husband Ben pay off a mortgage, with two dogs, five chickens, a blue-tongue lizard and a turtle their only dependents.
'My mental state is taking a toll on my physical state,' she said.
'Sleepless nights, constant headaches, tight neck, sick gut.
'I can only count my blessing that I am dealing with this whilst on a forced closure from work due to it being the slow period.
'The thought of having to perform at work on top of this would be too much.'
Ms Adams and her husband are now reconsidering plans to travel around Australia.
'We always wanted to do the lovely travelling around Australia,' she said.
'We have a mortgage that we are paying off, but since this crap we are more focused on trying to get it paid off as quickly as humanly possible so that when I do have to keep working we won't have a mortgage over our heads.'
A First Guardian Facebook discussion group alleged someone had committed suicide as a result of losing their retirement savings, a claim Daily Mail Australia has been unable to verify.
The loss of her super means she is planning to keep on working, with even plans for a modest retirement looking beyond her reach.
'That was kind of one of the plans we throw up in the air but we never really settled on anything except us both winding down and doing part retirement,' Ms Adams said.
'We knew our super would not be able to support a lavish retirement but we were expecting a retirement.
'I will work now until I can't. Also throwing ideas around for a second income stream. I guess my future looks very busy now.'
The situation is also looking bleak with the Compensation Scheme of Last Resort's chief executive David Berry telling The Australian Financial Review only $300million was likely to be available for those who lost money from First Guardian Master Fund and Shield Master Trust - making up only a third of total losses.
This is despite lost retirement savings of $1billion for both funds.
The non-profit government scheme covers victims of financial misconduct, following a determination from the Australian Financial Complaints Authority.
FTI Consulting, the liquidator of First Guardian Master Fund and its parent company Falcon Capital, estimates retirement savers are still owed $446million.
It last week told creditors the fund had paid $40million to a Venture Egg entity, Cornerstone Strategic Management, along with Atlas Marketing and Indigo Group, now all in liquidation, between August 2021 and February 2024.
The creditors' report also revealed Falcon Capital director Simon Selimaj, 63, had spent $548,000 from other people's retirement savings on a Lamborghini Urus SUV.
The fund also sent $242million offshore, making up almost half of the $505million fund.
Director David Anderson had bought a $9million mansion on Melbourne's Yarra River in December 2020, in the upmarket suburb of Hawthorn.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
14 minutes ago
- Daily Mail
The shocking new economic figure Anthony Albanese doesn't want you to see as immigration surges
Australia's unemployment rate has shot up to the highest level since late 2021, when Sydney and Melbourne were emerging from Covid lockdowns. The jobless rate of 4.3 per cent in June was the highest since November 2021, with 33,600 people losing their jobs and boosting the prospect of an August rate cut. This occurred as the number of full-time jobs fell by 38,000 while 40,000 part-time jobs were created, signalling a sharp drop in working hours. Canberra, the home of federal public servants, had Australia's lowest jobless rate of 3.6 per cent. This was a result of federal government spending hitting the highest level since 1986 outside of the pandemic. Australian Industry Group chief executive Innes Willox said public sector job growth was holding up the labour market as private sector demand for labour weakened. 'For over a year, there has been negligible job growth in the private market sector, with government-supported employment in the public and non-market sectors doing the heavy lifting,' he said. 'A rise in unemployment to its highest level since the pandemic points to the impact that our weak private sector is having on the labour market. 'With the private market sector accounting for two-thirds of employment in Australia, it was inevitable that its sustained weakness would eventually spill over to the broader labour market. It appears this problem is now coming home to roost.' Unemployment was higher than average in New South Wales and Victoria where migrant numbers are highest. 'Excessive migration has played a significant role in pummelling Australia's economic productivity,' Institute of Public Affairs deputy executive director Daniel Wild said. 'It has created extended periods of negative per capita economic growth, and exacerbated the housing and rental crises. Australia's unemployment rate also rose for the first time since December even though the Reserve Bank had cut interest rates in February and May. The latest jobless data from the Australian Bureau of Statistics is also worse than the RBA was forecasting in its May statement on monetary policy, with the 4.3 per cent figure slightly higher than the 4.2 per cent level it had predicted. The bad news on the labour market could make the Reserve Bank more inclined to cut rates on August 12 should upcoming June quarter inflation data show a moderation in underlying price pressures. KPMG chief economist Brendan Rynne said the fact that 34,000 more people are looking for work would make a rate cut next month more likely. 'While quarterly inflation data is still a week or so away, today's data will reinforce the weakness that is continuing within the private side of the Australian economy, and even by itself should be enough for the RBA to drop the cash rate at its next meeting,' he said. The RBA surprised financial markets earlier this month when it kept the cash rate on hold at 3.85 per cent. Governor Michele Bullock argued the underlying rate of 2.9 per cent was still too high in the March quarter, even though it is within the RBA's two to three per cent target. AMP economist My Bui said the fact just 2,000 new jobs were created, compared with market expectations of 20,000, suggested the labour market was weakening, with employers mainly hiring new part-time staff. 'Today's jobs data suggests a potentially broad weakening in the labour market,' she said. 'The composition of jobs gains was also weak.' This also suggested unemployment was now at a level less likely to fuel inflationary wage increases. 'We believe that the state of the Australian labour market is more balanced than tight and is not a source of inflationary pressures, warranting a rate cut in the August meeting,' Ms Bui said. AMP is expecting the RBA to cut rates in August, November, February and May, which would take the cash rate down to 2.85 per cent for the first time since December 2022. That is slightly more optimistic than the futures market pricing for a 3.1 per cent cash rate by early next year. Victoria was by far Australia's worst performing labour market with the highest jobless rate of 4.6 per cent, even though Melbourne receives a large share of overseas migration. New South Wales and South Australia had higher-than-average jobless rates of 4.4 per cent. Queensland and Western Australia had below-average rates of 4.1 per cent. The Australian Capital Territory, the home of federal public servants in Canberra, had the lowest jobless rate of 3.6 per cent, which was better than Tasmania's 3.8 per cent level and the Northern Territory's 3.9 per cent. National unemployment has risen despite rapid population growth, with 447,620 migrants moving to Australia on a permanent and long-term basis in the year to May. This was 33.6 per cent higher than the 335,000 level Treasury forecast for the 2024-25 financial year that ended in June.
Daily Mail
14 minutes ago
- Daily Mail
Dad's shocking act after allegedly throwing his baby in a pond
A father charged over the death of his son allegedly woke from a drunken nap 'laughing' and tried to flee the campsite after realising the baby had died. Jaye Lee Walton, 42, faced Ipswich Magistrates Court on Thursday for a bail application five days after the death of his son Reef Hunter Walton on July 12. The fisherman was camping with Reef and his partner Amy Stevenson in Chatsworth Park, near Gympie in southeast Queensland, when the tragedy occurred. Police allegations surrounding the case were heard by Magistrate Robert Walker, with Walton appearing via audiovisual link dressed in prison greens. The trio were driving home to Innisfail, in Far North Queensland, but stopped to rest at the campsite, where Walton was noted to have drunk a four-litre cask of wine while caring for his teething son during the night. When Reef became unsettled on Saturday morning, Walton offered to take him for a walk to the nearby toilet block, the court heard. 'After about 30 minutes, you failed to return so she (Ms Stevenson) went to check,' Mr Walker read from Ms Stevenson's police statement. Ms Stevenson allegedly found Walton asleep near the edge of a pond and Reef 'facedown' in the water, 10metres from the shore. '(She) started screaming at you but realised you were asleep. She entered the water, recovered the child, returned to the bank and commenced CPR,' Mr Walker read. Witnesses at the campsite observed Walton 'smiling or laughing' when he woke up and appeared 'oblivious' to his son's drowning. 'You then fled on foot, but returned due to the actions of bystanders,' Mr Walker said. The magistrate also noted allegations from one witness who claimed to have seen Walton threw his son into the pond. In her statement, Ms Stevenson claimed she was told by a woman: 'The guys were saying they saw him throw him into the water'. Walton's lawyer, Mark Butler, said these were 'hearsay comments' as the alleged witnesses had not given statements to police. He argued his client's actions fell under manslaughter by criminal negligence. Mr Butler added the family had no history with Child Safety and that Walton had an 'amazing' relationship with Reef and was heavily involved in his care. 'There is no allegation than my client has been anything other than a loving father,' he said. The court heard Walton is a 'high-functioning alcoholic' and at serious risk of harming himself if released on bail. While Walton does not have a significant criminal history, he has multiple alcohol-related traffic violations. He initially agreed to undergo an alcohol breath test following his son's death, but failed to complete it. Magistrate Walker refused Walton bail, finding his release would likely be 'endangering the safety or welfare' of others due to his alcoholism. Walton will return to court on August 4. Police inquiries into the incident are ongoing and officers are still looking to speak to some alleged witnesses. 'There is still a question mark from the officer's perspective, at least, as to the veracity of the statement of someone saying they saw him (Mr Walton) throw (Reef) in,' police prosecutor Senior Sergeant Michael Read said.
Daily Mail
44 minutes ago
- Daily Mail
Sydney furniture companies collapse with $500k in undelivered orders
Up to $500,000 worth of orders from a Sydney furniture firm remain undelivered after the company entered voluntary administration. Customers of Inventis furniture brands may be left in limbo after five companies, including Bassett Furniture, Gregory Commercial Furniture, and Workstations, went into voluntary administration in late June. The ASX-listed group owes nearly $30million, according to ASIC documents. The furniture companies operated out of Inventis' premises in Arndell Park, 35km west of Sydney's CBD. However, the companies were locked out of their headquarters in mid-June due to unpaid rent. Administrators Simon Cathro and Andrew Blundell from Cathro and Partners wrote in a report that the landlord issued a termination notice effective June 30. Trading was halted when administrators were appointed to prevent further losses. The Inventis Group is estimated to owe $2.6million to the Australian Tax Office, with the ATO issuing a director's penalty notice in June. The notice, addressed to the company's managing director, Anthony Mankarios, was for $1.4million in unpaid PAYG withholding tax dating back to August 2020. About $1.6million is owed to the company's staff, with the amount excluding the outstanding severance pay for the terminated employees. Inventis HR Services, one of the companies that was plunged into administration, has the largest outstanding debts. The firm, which employed the 55 staff members working throughout the group, owes $18.5million to creditors. An estimated $14.1million of the total debts relate to other groups within the company, such as the Inventis Technology division. About $4.4million in debts to creditors was owed by Inventis Properties, $5.6million owed by Gregory Commercial Furniture, $715,752 owed by Workstations, while Bassett Furniture owed $490,650 in total debts. The administrators explained the company had tried to restructure and cut costs after a drop in sales, but the measures failed to address the company's underlying issues. In the past two years, sales across Bassett, Gregory and Workstations had more than halved, plunging from $10.1million in 2023 to just $4million in 2025. Manufacturing at the Arndell Park site was halted in May after a storm caused leaking and unsafe work conditions, delaying $200,000 worth of orders. The group also incurred $321,000 in termination-related costs in March. In their report, the administrators wrote that the group's companies had potentially been trading since insolvent since June 2024. The administrators have urged creditors to vote in favour of liquidation at a meeting on Friday. If the company is put into liquidation, creditors will are unlikely to recover any of the debts owed. Company directors had told the administrators they were seeking asset realisations; the process of converting assets into cash or cash equivalents. The asset realisation could potentially include a co-investment, which, if successful would result in creditors and staff being paid. The administrators' report explained the businesses and assets were also up for sale. Three offers to purchase the companies have since been submitted, with one offer under negotiation. The sale, however, is only for the business and its assets, and would not include the transfer of employees, the administrators' report said.
