Super Members Owed $446 Million After Major Fund Collapse: Liquidator

Liquidators and ASIC continue to investigate amid claims the failed company had purchased a luxury sports car.

Australian banknotes and a one dollar coin. Squirrel_photos/pixabay

The liquidator in charge of a collapsed superannuation fund that may owe investors up to $446 million says it’s too early to determine what returns, if any, investors might receive.

The First Guardian Master Fund superannuation company collapsed earlier in the year, while holding hundreds of millions of dollars belonging to 6000 investors, most of whom had gone via superannuation platforms.

According to a report published by liquidators late on July 9, First Guardian’s parent body, Falcon Capital, had attracted investors with the promise of lucrative returns, but those investors weren’t made aware where the money was actually going.

One undeclared asset bought by the company was a 2023 Lamborghini Urus purchased in 2023 for $548,000, contributing part of the overall $2.2 million in cash and assets held by Falcon Capital.

Liquidators from FTI Consulting, Ross Blakeley and Paul Harlond, say other investment dollars had been spread between illiquid assets (which cannot be easily converted to cash) and loans to affiliated entities.

The Australian Securities and Investments Commission (ASIC) froze assets belonging to the company and key figures involved in February.

Company directors Simon Selimaj and David Anderson are currently subject to travel bans as investigations continue.

Last week, Anderson’s lawyers told the ABC their client did not want a “trial by media” and would “fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum.”

In a statement to The Epoch Times, FTI Consulting said investigations had shown concerns that had been raised by the ASIC and the grounds for winding the company up had been “valid.”

ASIC is still investigating Falcon Capital and has launched legal action before the Federal Court.

“While considerable work has been done to date, further actions and investigations are required by the liquidators to progress the liquidation,” FTI Consulting said.

“It remains too early to provide a view as to what recoveries and returns may be available for creditors and investors, and any other outcomes from the liquidation.

“The liquidators will continue with the winding up process and, due to the number and complexity of outstanding matters, they expect this will take some time to complete.”

FTI Consulting will consider seeking compensation for members of the fund for losses suffered, and estimates the net amount sought could be as high as $446 million.

Falcon was first incorporated in 2006, before becoming the trustee of the First Guardian Australian Development Fund in 2017.