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Daily Mail
10-07-2025
- Business
- Daily Mail
Aussies warned they may never see their money again after a major super fund collapses
Nearly $450million is feared lost from an Australian superannuation fund after its directors went on a lavish spending spree - including purchasing a luxury Lamborghini - before the fund collapsed. Now the creditor's report has revealed where they believe the cash has gone, amid new fears savers may never see their cash and plunge their retirement plans into chaos. The First Guardian Master Fund was placed into liquidation in March after the Australian Securities and Investments Commission obtained a Federal Court order to freeze its assets. FTI Consulting managing partners Ross Blakeley and Paul Harlond, who were appointed as liquidators in April, conceded creditors may struggle to get their money back. 'In the absence of considerable recoveries from alternative potential claims in the liquidation, insufficient funds will exist to meet all claims of creditors,' they said. The liquidators have now revealed that $446million could conservatively be owed to retirement savers, after their superannuation invested in dubious ventures. 'The liquidators have preliminarily estimated that claims by unitholders on a cash invested basis that have not been redeemed approximate $446million,' they said. 'Significant monies have been invested (or sent) offshore in foreign jurisdictions. 'Much has been invested in technology ventures, none of which appear to have yet been commercialised and are thus not generating an income.' David Anderson 46, a director of the super fund and parent company Falcon Capital Limited, is accused of siphoning millions of dollars into his personal ANZ bank account. 'There is evidence that one director, Mr Anderson, or entities or individuals associated with Mr Anderson have also been parties to certain transactions and/or the receipt of considerable monies from the company and/or funds,' the report said. 'These transactions require further investigation and explanation by Mr Anderson.' Before the fund collapsed, he had also bought a $9million Yarra River mansion in the upmarket Melbourne suburb of Hawthorn in 2020. Fellow director Simon Selimaj, 63, had a $548,000 Lamborghini Urus registered in his name. Like Mr Anderson, the Federal Court has banned him from leaving or trying to leave Australia until February 2026. 'The vehicle was purchased in January 2023 by the company for $548,000 including on-road costs and was funded via a bank account controlled by the company,' the creditors report said. 'On appointment the vehicle was in the possession of Mr Selimaj.' The Lamborghini, which the liquidators have since seized, is estimated to now be worth $350,000 to $400,000, with Slattery Auctions taking possession of it. The directors had also failed to disclose this Italian sports SUV in the report on company activities and property. First Guardian paid more than $40million in marketing fees to Cornerstone Strategic Management - associated with Venture Egg Financial Services, along with the now liquidated Atlas Marketing and Indigo Group, between August 2021 and February 2024. 'It appears these monies were ultimately sourced from the fund,' the creditors' report said. 'There are concerns that the payment of fees purportedly for marketing services may have given rise to a conflict of interest, breach of duties, and has depleted investor funds. 'Further, there are concerns that the payment of marketing services fees was not disclosed in the financial services guide or product disclosure statements.' Australians had invested with First Guardian after being contacted by Venture Egg Financial Services, whose director Ferras Merhi was a VFL ruckman. The Federal Court froze Mr Merhi's assets in February following an ASIC application. First Guardian's directors also potentially inflated the value of its assets. 'Further, the liquidators consider the value of the assets may have been overstated in the accounts,' the report said. 'The overall recoverable value of the investments is likely to be considerably less than their combined book value and the view expressed by the directors.' The $446millon owed to creditors is regarded as a conservative amount as 'investments and loans made' potentially 'increase creditor claims'. Mr Anderson's defence lawyer Dan Mackay, a director of Mackay Chapman, previously 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,' Mr Mackay said.
News.com.au
10-07-2025
- Business
- News.com.au
‘Significant shortfalls': First Guardian Master Fund investors warned they may never see their money again
Thousands of Australians who have invested their superannuation into First Guardian have been told they may not be able to recover all of their funds, and it could take more than a year for them to get their money back. 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. Customers said they were unaware their funds were being transferred to First Guardian Master Fund despite the details being written in the company's legal documents. The fund collapsed earlier this year, leaving thousands of customers in the lurch and unsure if they will ever see their money again. FTI Consulting liquidators Paul Harlond and Ross Blakely, who released their preliminary report into the fund, said they 'intend to undertake further investigations', including the determination 'whether any breaches of the Corporations Act or any other laws have occurred by any party … or any other circumstances exist, which may give rise to a potential claim by investors'. In their report, the liquidators said they were 'seeking compensation on behalf of members of the fund for losses suffered', which could be as high as $446m. However, they also hold fears investors may never see their funds again. Their assessment found the 'overall recoverable value of the investments is likely to be considerably less than their combined book value' and a 'substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in the liquidation'. In the report, the liquidators said 'a large proportion of investors in the (First Guardian Master Fund) invested through investment platforms', adding the recovered funds may not be as high as hoped. ' … the liquidators consider the value of the assets may have been overstated in the accounts,' the report read. 'It is very likely that some of the funds' assets/investments are not recoverable or will not recover their full ascribed value. Indeed, significant shortfalls to book values are expected.' The ABC reports the liquidators noted much of the money invested had gone to 'illiquid investments such as property developments and equity positions in related companies that may have shared a common director with the company'. The liquidators said it would take 'certainly beyond 12 months' to complete their investigation and wind up the business due to the 'complexity and number of outstanding matters' in the liquidation. 'The liquidators consider that the liquidation and the winding up of the funds will continue for and take some time to complete,' the report read. Corporate watchdog Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation. Falcon Capital Ltd is responsible for the failed 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 reported last week. Mr Anderson's assets have been frozen and his passport has been seized as Federal Court-appointed liquidators and investigators sort through financial records. ABC reported Mr Anderson allegedly moved $274m into offshore companies after he was alerted about the corporate watchdog's probe. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 2022 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. Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC last week '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.
Yahoo
10-07-2025
- Business
- Yahoo
Worrying update after super fund collapse
Thousands of Australians who have invested their superannuation into First Guardian have been told they may not be able to recover all of their funds, and it could take more than a year for them to get their money back. 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. Customers said they were unaware their funds were being transferred to First Guardian Master Fund despite the details being written in the company's legal documents. The fund collapsed earlier this year, leaving thousands of customers in the lurch and unsure if they will ever see their money again. FTI Consulting liquidators Paul Harlond and Ross Blakely, who released their preliminary report into the fund, said they 'intend to undertake further investigations', including the determination 'whether any breaches of the Corporations Act or any other laws have occurred by any party … or any other circumstances exist, which may give rise to a potential claim by investors'. In their report, the liquidators said they were 'seeking compensation on behalf of members of the fund for losses suffered', which could be as high as $446m. However, they also hold fears investors may never see their funds again. Their assessment found the 'overall recoverable value of the investments is likely to be considerably less than their combined book value' and a 'substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in the liquidation'. In the report, the liquidators said 'a large proportion of investors in the (First Guardian Master Fund) invested through investment platforms', adding the recovered funds may not be as high as hoped. ' … the liquidators consider the value of the assets may have been overstated in the accounts,' the report read. 'It is very likely that some of the funds' assets/investments are not recoverable or will not recover their full ascribed value. Indeed, significant shortfalls to book values are expected.' The ABC reports the liquidators noted much of the money invested had gone to 'illiquid investments such as property developments and equity positions in related companies that may have shared a common director with the company'. The liquidators said it would take 'certainly beyond 12 months' to complete their investigation and wind up the business due to the 'complexity and number of outstanding matters' in the liquidation. 'The liquidators consider that the liquidation and the winding up of the funds will continue for and take some time to complete,' the report read. Corporate watchdog Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation. Falcon Capital Ltd is responsible for the failed 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 reported last week. Mr Anderson's assets have been frozen and his passport has been seized as Federal Court-appointed liquidators and investigators sort through financial records. ABC reported Mr Anderson allegedly moved $274m into offshore companies after he was alerted about the corporate watchdog's probe. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 2022 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. Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC last week '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. Sign in to access your portfolio
Perth Now
10-07-2025
- Business
- Perth Now
Worrying update after super fund collapse
Thousands of Australians who have invested their superannuation into First Guardian have been told they may not be able to recover all of their funds, and it could take more than a year for them to get their money back. 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. Thousands are at risk of losing their nest egg. NewsWire / David Swift Credit: News Corp Australia Customers said they were unaware their funds were being transferred to First Guardian Master Fund despite the details being written in the company's legal documents. The fund collapsed earlier this year, leaving thousands of customers in the lurch and unsure if they will ever see their money again. FTI Consulting liquidators Paul Harlond and Ross Blakely, who released their preliminary report into the fund, said they 'intend to undertake further investigations', including the determination 'whether any breaches of the Corporations Act or any other laws have occurred by any party … or any other circumstances exist, which may give rise to a potential claim by investors'. The superannuation fund collapsed earlier this year. NewsWire / Christian Gilles Credit: News Corp Australia In their report, the liquidators said they were 'seeking compensation on behalf of members of the fund for losses suffered', which could be as high as $446m. However, they also hold fears investors may never see their funds again. Their assessment found the 'overall recoverable value of the investments is likely to be considerably less than their combined book value' and a 'substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in the liquidation'. In the report, the liquidators said 'a large proportion of investors in the (First Guardian Master Fund) invested through investment platforms', adding the recovered funds may not be as high as hoped. ' … the liquidators consider the value of the assets may have been overstated in the accounts,' the report read. 'It is very likely that some of the funds' assets/investments are not recoverable or will not recover their full ascribed value. Indeed, significant shortfalls to book values are expected.' About 6000 Australians invested their money into the fund. NewsWire / Nicholas Eagar Credit: NCA NewsWire The ABC reports the liquidators noted much of the money invested had gone to 'illiquid investments such as property developments and equity positions in related companies that may have shared a common director with the company'. The liquidators said it would take 'certainly beyond 12 months' to complete their investigation and wind up the business due to the 'complexity and number of outstanding matters' in the liquidation. 'The liquidators consider that the liquidation and the winding up of the funds will continue for and take some time to complete,' the report read. The liquidators warned they may not be able to recover all of the money. NewsWire / Luis Enrique Ascui Credit: News Corp Australia Corporate watchdog Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation. Falcon Capital Ltd is responsible for the failed 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 reported last week. Mr Anderson's assets have been frozen and his passport has been seized as Federal Court-appointed liquidators and investigators sort through financial records. ASIC is investigating. NewsWire / Nicholas Eagar Credit: NewsWire ABC reported Mr Anderson allegedly moved $274m into offshore companies after he was alerted about the corporate watchdog's probe. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 2022 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. Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC last week '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.
ABC News
09-07-2025
- Business
- ABC News
First Guardian investors warned their superannuation may never be recovered
Six thousand Australians who invested hundreds of millions of dollars of their super funds with First Guardian, which collapsed earlier this year, have been told by the fund's liquidator the case will take at least a year to resolve and there may be insufficient funds to pay them back. Liquidators from FTI Consulting, Ross Blakeley and Paul Harlond, have released their preliminary report into the collapsed fund saying that they "intend to undertake further investigations", including "determining whether any breaches of the Corporations Act or other laws have occurred by any party, including the company's directors". As ABC News reported last week, thousands of investors were advised to roll their superannuation assets into a retail choice superannuation fund and then to invest part or all of their superannuation into First Guardian. The fund and its directors are currently under investigation by the corporate watchdog, the Australian Securities and Investments Commission (ASIC). Many of the investors have told ABC News they fear they will never see a cent of their superannuation. If you have more information about this story please contact Nassim Khadem at or nassimkhadem@ The liquidator's report appears to confirm their worst fears, noting that much of the money invested had gone to "illiquid investments such as property developments and equity positions in related companies that may have shared a common director with the company". The liquidators said they are "seeking compensation on behalf of members of the fund for losses suffered" and that these losses could be as high as $446 million. ASIC has launched action in the Federal Court against Falcon Capital, which was the responsible entity for the failed First Guardian Master Fund, and is also investigating its then director David Anderson. Mr Anderson's assets have been frozen and passports seized, as investigators sift through years of financial records of his complex web of companies. Mr Anderson's lawyers told ABC News last week their client doesn't want "trial by media" and "will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum". The liquidators note that "overall recoverable value of the investments is likely to be considerably less than their combined book value" and that "a substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in liquidation". The liquidators have found some assets that can be recovered. It noted a Department of Transport search revealed a Lamborghini the company purchased in January 2023 for $548,000, and that it could fetch between $350,000 to $400,000 at a future Slattery auction. The luxury SUV was found in the possession of one of Falcon's other directors Simon Selimaj, according to the report. In a fresh statement from his lawyer, Mr Anderson told ABC News he "does not own, has never owned or had the use of a Lamborghini". The liquidators said it would take time — "certainly beyond 12 months" to complete their investigations and wind up the company. It noted "a large proportion of investors in the FGMF invested through investment platforms". "Investors who invested through a platform, and remain invested through that platform, hold their interests in the FGMF through that platform, rather than directly with Falcon and the FGMF (First Guardian Master Fund)," the report said. "Those platforms are the formal registered unit holders." It said its preliminary assessment is that "the funds' investments may not recover their ascribed book value as asserted by the directors in their Report on Company Activities and Property (ROCAP)". "Further, the liquidators consider the value of the assets may have been overstated in the accounts," it said. While court records showed the stated value of the fund assets by one its directors was $506 million, the liquidators said in their report the recoverable value of the investments was likely to fall well below that, with $242 million channelled offshore. Liquidators said the status of their recovery efforts for the money moved overseas remained "commercially sensitive" and couldn't provide an update. The liquidators said Falcon operated two investor application accounts. It said in total about $642 million was received into the accounts by investors and $197 million redeemed, leaving $446 million outstanding. Of the outstanding funds, a total $68.9 million was invested or loaned to entities associated with Falcon Capital director David Anderson. And three Australian-based ventures in which investments have been made worth $58.7 million on are already insolvent, it said. One of those was a group of craft breweries and bottle shops called Fox Friday. It's alleged Mr Anderson was a key investor in the company when he signed off on a $31 million loan. Liquidators said only a "small percentage" of the loan was likely to be recouped. To date the liquidators have taken $1.7 million in fees and this figure is expected to keep growing. The liquidator also flagged that they would give people who invested "priority " treatment in trying to recover their funds if they paid the liquidators a fee. "Whilst there are entities who specialise in funding litigation in return for a percentage of any successful action, interested parties such as creditors or unit holders can also provide funding to a liquidator for specified purposes," the report said. "In such circumstances those parties may be afforded certain rights including priority for funds from any monies successfully recovered." FTI Consulting told ABC News in a statement: "Based on the liquidators' preliminary investigations, the liquidators consider that the concerns raised by ASIC and grounds for the winding up were well founded and that the actions taken were necessary to protect unit holders' interests in the First Guardian Master Fund." "While considerable work has been done to date, further actions and investigations are required by the liquidators to progress the liquidation. "It remains too early to provide a view as to what recoveries and return may be available for creditors and investors, and any other outcomes from the liquidation". "The liquidators will continue with the winding up process and, due to the number and complexity of outstanding matters, they expect this will take some time to complete."
