Slater and Gordon investigates class action against First Guardian, Shield Master Fund

The firm's principal lawyer in class actions, Andy Wei, says that the firm is investigating claims that investors were advised to put their precious superannuation savings into largely unreliable funds. 

"What we’re seeing here is potentially deliberate misleading of investors, many of whom are everyday Australians looking to secure their nest eggs," Wei says.

"They were repeatedly assured that their superannuation would flow into diversified portfolios with steady returns.  

"However, recent information shows that these funds were largely illiquid with their values grossly overstated."

Illiquid assets are investments that cannot be easily sold or converted into cash without significant loss of value, such as property developments, unlisted securities, or private loans.  

"Over $1 billion in superannuation has been potentially wiped out, leaving more than 12,000 Australians out of pocket. These are people’s savings, and they deserve far better than this," says Wei.

“Superannuation is meant to be tightly regulated, and many investors likely believed their money was safely managed by trusted, blue-chip superannuation companies. 

"We are particularly concerned for investors in First Guardian Master Fund, as FTI Consulting – the liquidators for First Guardian – have now confirmed that they expect ‘a substantial shortfall of recoverable assets'."

Ross Blakeley and Paul Harlond of FTI Consulting were appointed as liquidators of Falcon Capital, the responsible entity for First Guardian, in April, following an investigation by the Australian Securities and Investments Commission (ASIC).

The decision, which included a wind-up order, followed the freezing of assets just months earlier. ASIC alleged that approximately $274 million of First Guardian’s value arose from cash receivables whereby payments were "many months" late, while more than $23 million of its assets appear to have been paid to entities purportedly providing marketing services.

The watchdog alleged that Falcon appeared to have failed to recognise and manage conflicts of interest arising from investments in which Anderson has an association or financial interest.

Earlier this month, the Federal Court made interim travel restraint orders against Falcon Capital Limited directors David Anderson and Simon Selimaj until 27 February 2026.

ASIC sought the orders to ensure Anderson and Selimaj remain in Australia to assist the regulator with its investigation and to preserve assets.

The regulator is also seeking the appointment of a receiver and manager to the personal property of Selimaj.

Regarding Shield Master Fund, in December creditors to its responsible entity Keystone Asset Management (KAM) resolved to wind up the company, with ASIC investigating whether significant investor funds may have been dissipated.

In an announcement at the time, ASIC reported it understood that since February 2022, funds totalling more than $480 million had been invested into Shield by at least 5,800 consumers, who accessed Shield primarily through superannuation platforms.

The regulator alleged that a large proportion of Shield’s funds were invested in the Advantage Diversified Property Fund (ADPF), for which KAM was the trustee.

ASIC alleged this fund made loans to various companies associated with former KAM director Paul Chiodo to fund development projects in Fiji, Italy, Port Douglas, and Melbourne, with "substantial sums" spent on property developments without written contracts, or even without the requisite development approvals to proceed in the case of a Port Douglas development.

The regulator also alleged there was a "substantial shortfall when comparing the monies invested in the ADPF against the value of the assets of the ADPF".