By Alexandra Feiam
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鈥檚 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 鈥渟omeone selling you cars 鈥 just relentless, relentless people鈥.
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.
鈥淲hen I got that email (from Austrac advising the superannuation money had been frozen), my stomach dropped 鈥 I just had this sick feeling,鈥 he told the outlet.
He learned his funds were not being reinvested to increase his super, but instead sent to a 鈥渃ash hub鈥 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鈥檚 alleged Mr Anderson also poured the investor鈥檚 savings into celebrity chef Scott Pickett鈥檚 restaurant empire, of which he was an investor, ABC reports.
Mr Anderson鈥檚 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鈥檚 probe.
ASIC warned the money would be hard to recover.
The watchdog alleges $5.6m was deposited into Mr Anderson鈥檚 ANZ account between June 202 and September last year 鈥渨ithout any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors鈥.
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 鈥渁lleges that Falcon and its directors and officers may have failed to act in the best interests of members鈥.
鈥淔alcon 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,鈥 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鈥檚 legal representative, Dan Mackay of Mackay Chapman, told the ABC 鈥渢here have been no findings of fact or law by any court or tribunal, nor by ASIC鈥.
鈥淢r Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,鈥 he said.
ASIC investigators said in the 鈥渂est-case scenario鈥, $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鈥檚 assets and is allegedly linked to 2,440 clients who invested $179m into First Guardian.
It鈥檚 alleged Mr Merhi was paid $19m from First Guardian to market the fund, according to court documents.