Latest news with #FirstGuardian
Time of India
2 days ago
- Business
- Time of India
First Guardian Master Fund collapses, over 6000 Australians face superannuation loss
Thousands of Australians at risk as superannuation fund collapses Over 6,000 Australian investors may lose access to their retirement savings following the collapse of the First Guardian Master Fund . The fund, which received $590 million in superannuation investments, is now under investigation by the Australian Securities and Investments Commission ( ASIC ) for potential misuse of investor funds and undisclosed conflicts of interest. The First Guardian Master Fund was registered in August, 2019 as a managed investment scheme. Falcon Capital Limited, based in Melbourne, was responsible for managing the fund. In May 2024, Falcon Capital suspended applications and withdrawals, preventing most investors from accessing their superannuation or transferring funds to a new superannuation provider. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas Prices In Dubai Might Be More Affordable Than You Think Villas In Dubai | Search Ads Get Quote Undo Also read: The $100-a-week super habit that could save Aussie business owners from a $500,000 retirement shock Financial advisers directed superannuation transfers into risky scheme Many investors were guided by financial advisers to transfer their superannuation from established funds such as ANZ into First Guardian via retail choice super funds. Forklift driver Juan Carlos Sanchez reported being promised up to $1 million in retirement savings by telemarketers working for financial advisory firm Venture Egg . 'They were talking numbers of – 'we'll have you $800,000 in your super by the time you retire; a million dollars', really crazy things like that,' Mr. Sanchez told the ABC. Live Events Mr. Sanchez received an email in May, 2024 from the AusPrac fund confirming that withdrawals had been frozen. 'When I got that email, my stomach dropped, it's just been wiped out by this collapse,' he said. 'I just had this sick feeling.' ASIC alleges investor funds were not reinvested for growth but redirected into a cash hub controlled by First Guardian directors. Mr. Sanchez and thousands of other investors are now unable to access their superannuation balances. Also read: Superannuation changes explained: Why 80,000 retired and super-rich Aussies will pay more tax ASIC investigates fund misuse and offshore transfers ASIC alleges Falcon Capital director David Anderson funneled millions from First Guardian investors into his own business interests, including failed property developments and craft breweries. He was also reportedly a shareholder in ventures involving celebrity chef Scott Pickett. 'First Guardian has invested in entities which Mr. Anderson had an association with or financial interest in and Falcon appears to have failed to recognise and manage consequent conflicts of interest,' ASIC stated. In April, 2024, the Federal Court appointed FTI Consulting as Falcon Capital's liquidators following an ASIC application. Anderson's assets were frozen, and his passport seized. Along with Falcon director Simon Selimaj, Anderson is barred from leaving Australia until February, 2026. Public court documents allege Anderson transferred $274 million to offshore companies tied to him after receiving notice of the investigation. ASIC also identified $5.6 million deposited into Anderson's personal ANZ account without clear justification. Among these transactions was a $16,000 mortgage payment on Anderson's multimillion-dollar home. In its filings, ASIC claimed Falcon continued to reinvest limited funds into illiquid assets, despite previously indicating that it would prioritize investor redemptions once receivables were recovered. In a best-case scenario, regulators estimate $81 million remains unaccounted for. Also read: Trillions wiped from the economy and Americans' pensions as stock markets tank following Donald Trump's ta Financial adviser and marketing payments under regulator scrutiny ASIC is also investigating Melbourne-based financial adviser Ferras Merhi, head of Venture Egg Financial Services . Merhi is connected to 2,440 clients who collectively invested $179 million into the First Guardian Master Fund. The Federal Court has issued interim orders freezing select assets belonging to Merhi. Court documents allege Merhi received over $19 million in payments from First Guardian for marketing services while directing clients into the same fund. ASIC further alleges that $23 million in fund assets were disbursed for marketing purposes, contradicting representations made to investors. 'Everyone is running for the hills trying to cover their backsides. It's absolutely shameful,' said investor Greg McElherron. 'If you're going to be not only encouraged but mandated to put money into your super, it should be protected.' Investors used reputable super platforms before collapse Investors accessed the First Guardian Master Fund through well-known superannuation platforms, including Diversa, Netwealth, and Equity Trustees. They were advised to roll their superannuation balances into retail super funds or self-managed superannuation funds before transferring into First Guardian. David Anderson's attorney, Dan Mackay, stated, 'There have been no findings of fact or law by any court or tribunal, nor by ASIC. Mr. Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum.' Also read: How will Trump tariffs affect retirement and 401Ks? ASIC's investigation into First Guardian Master Fund, Falcon Capital, and associated individuals remains ongoing. FAQs about the First Guardian Master Fund collapse 1. What is the First Guardian Master Fund and why did it collapse? The First Guardian Master Fund was a managed investment scheme that received $590 million from over 6,000 Australians through superannuation transfers. It collapsed in early 2024 following ASIC's investigation into alleged misuse of investor funds, conflicts of interest, and failure to manage investments appropriately. 2. Can superannuation investors recover their money from the First Guardian collapse? Recovery of superannuation funds from the First Guardian Master Fund remains uncertain. ASIC's best-case scenario analysis found $81 million unaccounted for. With much of the money allegedly moved offshore or invested in illiquid assets, full recovery appears unlikely for many investors. 3. Who is being investigated in connection with the First Guardian collapse? ASIC is investigating Falcon Capital directors David Anderson and Simon Selimaj, as well as financial adviser Ferras Merhi of Venture Egg Financial Services. Allegations include diversion of superannuation funds, offshore transfers, personal benefit payments, and undisclosed marketing commissions. 4. How were investors directed to invest in the First Guardian Master Fund? Investors accessed the First Guardian Master Fund via trusted super platforms like Diversa, Netwealth, and Equity Trustees. Financial advisers, including those from Venture Egg, encouraged clients to roll their superannuation into retail or self-managed super funds before investing in the scheme.
News.com.au
2 days ago
- Business
- News.com.au
Thousands of Aussies at risk of losing their super after collapse of First Guardian Master Fund
Thousands of Aussies who have invested millions of their super into First Guardian Master Fund are in limbo as the company collapses. About 6000 Australians have invested $590m into the superannuation fund, which was founded in 2019 as a management investment scheme. Investors were advised to roll their money into a retail choice super fund, then invest their funds into First Guardian, which was available to investors on the superannuation platforms Equity Trustees, Netwealth and Diversa. Despite the details being written in the company's legal documents, customers said they were unaware their funds were being transferred to First Guardian Master Fund. One of the customers affected was Juan Carlos Sanchez, a 41-year-old business owner from Melbourne who told the ABC he was contacted by a financial advisory called Venture Egg, who convinced him to roll his nest egg from ANZ to a fund called Austrac. He said the fund convinced him his super would increase to $1m by the time he retired, likening the process to 'someone selling you cars … just relentless, relentless people'. However, after he shifted his money over to the fund and checking his balance, he discovered his withdrawals had been frozen. He later learned the withdrawals from his super had been frozen since May 2024. 'When I got that email (from Austrac advising the superannuation money had been frozen), my stomach dropped — I just had this sick feeling,' he told the outlet. He learned his funds were not being reinvested to increase his super, but instead sent to a 'cash hub' which was controlled by directors of First Guardian Master Fund, which he had never heard of before. The company collapsed earlier this year, with 6000 customers investing $590m into the fund before its demise. Corporate watchdog Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation into the company. Falcon Capital Limited is responsible for the filed superannuation fund, with ASIC investigating its former managing director David Anderson, who allegedly funnelled funds from superannuation members into his failed property developments and craft breweries. It's alleged Mr Anderson also poured the investor's savings into celebrity chef Scott Pickett's restaurant empire, of which he was an investor, ABC reports. Mr Anderson's assets have been frozen and his passports seized as the Federal Court appointed liquidators to Falcon Capital and investigators continue to sort through financial records. ABC reports Mr Anderson allegedly moved $274m into offshore companies after he was alerted about the corporate watchdog's probe. ASIC warned the money would be hard to recover. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 202 and September last year 'without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors'. ASIC also alleges Mr Anderson used $16,000 to make mortgage payments on his $9m home overlooking the Yarra River. Documents obtained by ABC revealed ASIC 'alleges that Falcon and its directors and officers may have failed to act in the best interests of members'. 'Falcon appears to continue to redeploy the limited funds it has received to illiquid investments, despite representations made to investors that it would fulfil redemption requests and reopen the First Guardian Master Fund for investment once the cash receivables are received,' the report read. The allegations suggest Falcon may have misled its investors about the safety of their money after the suspension of applications and withdrawals in May 2024. However, Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' he said. ASIC investigators said in the 'best-case scenario', $81m would be unaccounted for, but confessed money loaned to international businesses may never be recovered. ASIC is also investigating Ferras Merhi, a Melbourne-based financial adviser and former VFL: ruckman who controlled Venture Egg Financial Services and allegedly encouraged thousands of clients to move their funds into First Guardian Fund and Shield Master Fund. The Federal Court has since frozen some of Mr Merhi's assets and is allegedly linked to 2,440 clients who invested $179m into First Guardian. It's alleged Mr Merhi was paid $19m from First Guardian to market the fund, according to court documents.
Daily Mail
2 days ago
- Business
- Daily Mail
BREAKING NEWS Thousands of Aussies at risk of losing their superannuation as First Guardian Master Fund collapses
More than 5,000 Aussies who reinvested hundreds of millions of their superannuation into First Guardian Master Fund could struggle to get their nest eggs back after the company's collapse. Aussies like Juan Carlos Sanchez were convinced by financial advisory company Venture Egg to move their super savings from ANZ into a fund called AusPrac. After shifting all his super, Mr Sanchez was told that withdrawals from his fund had been frozen since May 2024. 'When I got that email (from AusPrac advising the superannuation money had been frozen), my stomach dropped — I just had this sick feeling,' he said. Mr Sanchez later discovered his super was not being reinvested to grow his retirement savings but was being sent into 'a cash hub' controlled by the directors of First Guardian Master Fund. Mr Sanchez was one of 6,000 Aussies who invested $590million with First Guardian before it collapsed this year. The Australian Securities and Investments Commission is investigating the company. Investors were told to put their super into a retail choice superannuation fund and then invest part or all of it into First Guardian. Falcon Capital Limited was responsible for the failed First Guardian fund. Its former managing director was David Anderson and ASIC is investigating him after alleging he poured millions of investors' retirement savings into his own failed property developments, craft breweries and to help celebrity chef Scott Pickett, of which he was a shareholder. The Federal Court has appointed liquidators to Falcon Capital and Mr Anderson's assets have been frozen and passports seized as investigators comb through financial records. Mr Anderson and another director Simon Selimaj are banned from leaving Australia until 27 February 2026. 'ASIC sought the orders to ensure Mr Anderson and Mr Selimaj remain in Australia to assist ASIC with its investigation and to preserve assets while ASIC's investigation is continuing,' the regulator said. Public court documents obtained by ABC News revealed Mr Anderson moved $274 million into offshore companies tied to him after he was warned about ASIC's investigation. ASIC investigators have warned the money will be hard to find. The regulator also alleged $5.6 million was put into Mr Anderson's personal ANZ account 'without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors'. He allegedly used $16,000 to make a mortgage payment on his multi-million-dollar home. 'Falcon appears to continue to redeploy the limited funds it has received to illiquid investments, despite representations made to investors that it would fulfil redemption requests and reopen the First Guardian Master Fund for investment once the cash receivables are received,' ASIC told the court. ASIC also alleged Falcon may have deceived stakeholders about the security of their investment and possible returns. Lawyers for Mr Anderson said 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' Dan Mackay of Mackay Chapman lawyers said. ASIC found that in the 'best-case scenario' $81 million of investor funds were unaccounted for but accepted the money loaned to overseas businesses may never be recovered. One investor stands to lose $677,000. ASIC is also investigating Melbourne-based financial adviser Ferras Merhi who ran Venture Egg Financial Services and led thousands of clients into the First Guardian Fund. The Federal Court has made interim orders freezing some assets of Mr Mehri who is linked to at least 2,440 clients who invested $179 million in First Guardian funds. While telling clients to invest in First Guardian, Mr Merhi was also being paid to market the fund. In court documents it was alleged Mr Mehri received more than $19 million in payments from First Guardian for marketing services. Small business owner Greg McElherron could lose thousands of dollars and pleaded with the government to step in and protect superannuation investors. 'Everyone is running for the hills trying to cover their backsides. It's absolutely shameful,' he said. 'If you're going to be not only encouraged but mandated to put money into your super, it should be protected.'
