More than 12,000 Australians are at risk of losing over $1 billion in superannuation as a national law firm investigates a potential class action lawsuit against two collapsed super funds accused of operating a Ponzi scheme.
Lawyers from Slater and Gordon are leading the investigation on behalf of investors against First Guardian Master Fund and Shield Master Fund, which have both entered into liquidation.
The Australian Securities and Investments Commission (ASIC) is also carrying out a range of investigations against all parties involved, including Keystone Asset Management, the responsible entity for the Shield Master Fund, and Falcon Capital, the manager of the First Guardian Master Fund.
Thousands of Australians who invested in these funds are now facing uncertainty about how much of their money can be recovered.
According to Andy Wei, principal lawyer in class actions at Slater and Gordon, investors were advised to roll their superannuation assets into largely unreliable funds, which have now been revealed to be largely illiquid with grossly overstated values.
Wei confirmed that there is a chance that more than 12,000 Australians could be left out of pocket, with more than $1 billion in superannuation “potentially wiped out”.
“These are people’s savings, and they deserve far better than this,” Wei said.
Slater and Gordon understand that the liquidators of First Guardian have observed issues arising from co-mingling of investor funds, which is common in Ponzi schemes.
The firm is urging investors who have been affected to come forward and contact them to help shape the best path forward for recovery of their funds.