Over 6,000 Australians are at risk of losing their retirement savings after the First Guardian Master Fund, a superannuation fund, collapsed and is now under investigation by the Australian Securities and Investments Commission (ASIC).
The fund received $590 million in superannuation investments, but ASIC alleges that the funds were misused and that there were undisclosed conflicts of interest.
Financial Advisers and Marketing Payments Under Scrutiny
Financial advisers, including those from Venture Egg Financial Services, are under investigation for directing clients into the First Guardian Master Fund, which is now frozen.
One investor, Juan Carlos Sanchez, reported being promised up to $1 million in retirement savings by telemarketers working for Venture Egg.
Sanchez received an email in May 2024 confirming that withdrawals had been frozen, leaving him feeling “sick” and uncertain about his retirement future.
ASIC Alleges Misuse of Funds and Offshore Transfers
ASIC alleges that Falcon Capital, the company managing the First Guardian Master Fund, funneled millions of dollars into the directors’ business interests, including failed property developments and craft breweries.
The regulator also claims that $274 million was transferred to offshore companies tied to the directors, and that $5.6 million was deposited into a personal ANZ account without clear justification.
Recovery of Funds Uncertain
ASIC’s investigation is ongoing, but it’s unclear how much of the $590 million invested in the First Guardian Master Fund will be recovered.
In the best-case scenario, regulators estimate that only $81 million remains unaccounted for, leaving thousands of investors unsure about their retirement savings.