News and Updates

[Australia Pension Crisis] $1 Billion Superannuation Scheme Collapse! The Worst Scandal Ever — Funds

Introduction
Australia's most well-known pension fund has collapsed, leaving thousands of Australians with nothing!
A $1 billion investment scam has been uncovered — it was a Ponzi scheme!
All the funds were squandered on luxury cars, mansions, and lavish spending…

01:

Australia's Renowned Pension Fund Collapses — It's a Ponzi Scheme

In recent years, Australia's pension investment market has witnessed numerous irregularities. The recent collapse of the First Guardian Master Fund has emerged as one of the most shocking Ponzi schemes in recent memory.

A pension fund carrying the retirement hopes of thousands of Australians — worth $1 billion — has been entirely drained, leaving many innocent Australians deceived and their retirement dreams shattered!

With the collapse of First Guardian Master Fund, more than 6,000 Australian investors may no longer have access to their retirement savings.

The First Guardian Master Fund, established in August 2019, was managed by Falcon Capital Limited, headquartered in Melbourne.

This fund attracted $590 million in pension investments, but in May 2024, Falcon Capital suspended deposits and withdrawals, leaving most investors unable to access their superannuation or transfer funds to other superannuation providers.

In February 2025, the assets of First Guardian were completely frozen by the Australian Securities and Investments Commission (ASIC).

Currently, First Guardian is under investigation by ASIC for potential misuse of investor funds and undisclosed conflicts of interest.

The investigation revealed that many investors, under the advice of financial advisors, transferred their pensions from well-established funds like ANZ to First Guardian.

One investor, Christian Eriksen, invested his entire $140,000 superannuation through another superannuation platform, Netwealth, into First Guardian.

He had planned to retire this year but is now forced to continue working as a painter or sell his house in Tweed Heads.

Eriksen expressed: "I never thought my pension would be handled like a construction company. Netwealth continued charging me hundreds of dollars a month for management fees until this April."

"We might lose everything, even though it's not our fault."

Another victim, Juan Carlos Sanchez, claimed that the financial consulting company Venture Egg promised him that his retirement savings would grow to $1 million.

They told him, "By the time you retire, your super account will have $800,000."

However, today, not only does he not have $800,000, but these investors can't even access their pension funds, and may never recover a cent.

Reports indicate that investors may face total losses of $446 million, with $242 million already transferred overseas, and physical assets left worth only $2.2 million (including a Lamborghini Urus). Even if funds are recovered, it may take until 2027 to get them back.

So where did all the investors' pensions go?

02:

Investor Pensions Spent on Luxury Cars, Mansions, and Overseas Transfers

According to a report published on July 8 by liquidators Ross Blakeley and Paul Harlond, the fund’s operating entity, Falcon Capital, lured new investors with promises of high returns, while misappropriating funds for illiquid assets, related party loans, and even purchasing a $500,000 Lamborghini.

Even more alarming, the fund used a typical Ponzi scheme model — using new investors' funds to pay redemption requests from older investors. This structure revealed the chaotic flow of funds.

First Guardian claimed to invest clients' funds in "defensive, diversified, and growth assets," but liquidators found that the fund allocation was entirely arbitrary, with no real distinction between asset classes.

The investigation revealed that Falcon Capital received clients' funds via two accounts and transferred them to the First Guardian fund, while using new funds to pay redemption requests.

A total of $642 million flowed into the fund, $197 million was redeemed, and the remaining $446 million is unaccounted for.

These missing funds were ultimately funneled into various projects related to insiders.

Among these, $69 million was invested or lent to companies linked to Falcon Capital director David Anderson, including the restaurant group of celebrity chef Scott Pickett, the Tasmanian craft beer brand Fox Friday, and an Indonesian real estate finance company operated by the former private equity executive of First Guardian.

However, these investment enterprises are now insolvent, and assets worth $59 million are now worthless.

Even more enraging, some of the funds were used for personal luxury consumption.

ASIC has charged Anderson for using investor funds for personal enjoyment, including paying off his $9 million mortgage for his mansion in Hawthorn.

Between June 2020 and September 2024, another $5.6 million was transferred to his personal ANZ account, "without any legal payment basis and not disclosed to investors."

Additionally, the Lamborghini Urus purchased by Falcon in 2023 was found to be owned by another director, Simon Selimaj, and has now been seized by the liquidators for auction.

03:

Regulatory Agencies Take Action, Another Scam Uncovered

According to securities regulators, even after the fund was suspended last year, Falcon continued injecting funds into illiquid investments.

Legal actions have been taken against the company, and freezing orders have been placed on directors Anderson and Selimaj, along with temporary travel restrictions preventing them from leaving or attempting to leave Australia until February 27, 2026.

An ASIC spokesperson confirmed that this case is a regulatory priority, with 40 investigators assigned to the case.

The investigation revealed that some financial advisors encouraged consumers to transfer their superannuation into retail fund options before funneling the funds into First Guardian.

For example, Melbourne-based financial advisor Ferras Merhi, through his companies Venture Egg and Financial Services Group Australia, funneled at least 2,440 clients (with a total investment of $179 million) into this scam.

However, First Guardian is not the only case. Its collapse has led to the exposure of another scam.

The fund also had financial ties to the now-bankrupt property developer Paul Chiodo's Shield Master Fund.

Chiodo has also been accused of misusing investor funds for personal consumption, while more than 1,100 advisors who recommended First Guardian also led clients to the Shield Fund.

Law firms have indicated that over 12,000 Australians will be affected by these two cases, with losses exceeding $1 billion.

Conclusion

A well-designed Ponzi scheme has turned the pension savings of thousands of Australians into nothing.
Regulatory failures and greed have intertwined, leaving investors with nothing but a long wait for compensation.



服务时间:周一到周五 9AM-5:30PM

  • 欢迎咨询
  • 欢迎咨询
  • 欢迎咨询
  • 欢迎咨询