Slater and Gordon Lawyers is investigating a potential class action for investors in the First Guardian Master Fund and Shield Master Fund for allegedly operating a Ponzi scheme.
Slater and Gordon principal lawyer in class actions Andy Wei said the firm is investigating claims investors were advised to put their 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. They were repeatedly assured that their superannuation would flow into diversified portfolios with steady returns,” Wei said.
“However, recent information shows that these funds were largely illiquid with their values grossly overstated.”
The Australian Securities and Investments Commission (ASIC) has ongoing investigations into both the First Guardian Master Fund and Shield Master Fund. The corporate watchdog understands more than $480 million has been invested in the Shield Master Fund alone since February 2022.
ASIC’s investigation into both these funds centres on investors being called by lead generators and referred to personal financial advice providers.
These providers then advised them to roll their super assets into a retail choice superannuation fund and then invest into First Guardian or Shield.
Some of these investors also received advice to set up an SMSF to enable these investments.
“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,” Wei said.
The lawyer pointed out many investors in these schemes probably believed their money was safely managed by trusted, blue-chip superannuation companies.
“We encourage investors who have been affected to come forward and contact our firm as information will help us assess the best path for recovery, including whether a class action is viable,” he said.
Slater and Gordon Lawyers has previously helped investors recover losses from failed investment schemes such as Storm Financial, IPO Wealth, Provident Capital, Australian Capital Reserve and Fincorp.
