The Federal Court has frozen the assets of two entities linked to the Shield Master Fund, which was flagged by the Australian Securities and Investments Commission (ASIC) as using telemarketers to encourage people to move out of their existing superannuation funds into SMSFs to invest in high-risk assets.
Following applications by ASIC, the court made interim orders freezing certain assets of Osama Saad, former director of Aus Super Compare and Atlas Marketing, which are now both in liquidation.
The corporate regulator stated it was investigating Saad, and entities linked to him, as part of its wider investigations into some managed investment schemes, including the Shield Master Fund.
In a separate order, the court also froze certain assets of Melbourne-based financial adviser Ferras Merhi, who, along with various entities associated with him, is also being investigated by ASIC as part of its investigations into the Shield Master Fund.
The interim orders in both instances are in place until 4 April, but may be extended at a final hearing yet to take place.
ASIC noted Merhi controls Venture Egg Financial Services, formerly Ferras Merhi Pty Ltd, and United Financial Advice, trading as Venture Egg and Financial Services Group Australia (FSGA). Both Venture Egg and Merhi are authorised representatives of Interprac Financial Planning, while FSGA holds an Australian financial services licence.
The regulator’s investigation into the Shield Master Fund, a managed investment scheme registered in May 2021, and Keystone Asset Management (KAM), the responsible entity for Shield, started in February 2024 when it halted new offers of investments in the fund.
In June 2024, it took action to secure the assets held within Shield and appointed receivers and managers of the property of KAM.
The Federal Court then appointed receivers to take control of Shield’s bank accounts, secure property held by KAM and recover Shield investor funds.
In December, the creditors of KAM resolved to wind it up, but the fund remains under the management of the receivers and has yet to be wound up.
