Thousands of Australian retirees and savers face financial devastation after the collapse of the First Guardian Master Fund, with liquidators recovering a paltry $1.6 million from an eye-watering total loss estimated at $446 million.
A Trail of Luxury Spending and Missing Millions
In March, the Federal Court, acting on an application by the corporate watchdog ASIC, placed the First Guardian Master Fund into liquidation and froze its assets. FTI Consulting was appointed in April as liquidator for Falcon Capital, the responsible entity managing the scheme.
This week, liquidators revealed the dismal recovery figure. The funds were clawed back primarily from selling assets, including a $548,000 Lamborghini Urus purchased by First Guardian director Simon Selimaj, 63, before the fund's failure. A further $859,227 was recovered from Kanun Capital Pty Ltd, and $450,000 came from the liquidation of craft brewer Fox Friday Brewing.
Staggeringly, the liquidator's own fee of $2 million exceeds the total amount recovered so far. FTI Consulting must first recover $243,391 owed to the fund's lenders before any remaining funds can be distributed to the 6,000 embattled investors, who have been warned not to expect full repayments. Partial returns are not anticipated until 2027.
Directors Accused of Siphoning Funds Overseas
The scale of the alleged misconduct is vast. ASIC accuses First Guardian boss David Anderson, 46, of siphoning $5.6 million into his personal ANZ account "without any legitimate basis." His assets were frozen and his passport seized in February.
Furthermore, Anderson is accused of moving a staggering $274 million overseas after learning of ASIC's investigation into financial irregularities. Liquidators are now examining entities and funds created by the directors and their associates in the Cayman Islands.
While Anderson was spotted on a peaceful stroll on Phillip Island in August, investors like Canberra couple Simon and Annette Luck were confronting the loss of $340,000 – nearly all their retirement savings. "Disheartened, dismayed and downright disappointed and let down," Mrs Luck said earlier this year, with the couple now fearing they may have to sell their home.
A Systemic Failure with Lasting Consequences
ASIC states that around 6,000 people invested, often after being contacted by lead generators and referred to financial advisers. These advisers frequently recommended rolling over existing super into a choice fund or setting up a self-managed super fund (SMSF) to facilitate investment into First Guardian.
The watchdog has taken court action to preserve remaining assets for investors. A number of First Guardian investments will require legal action to recover funds, with other claims likely to be directed against the directors themselves, though their ability to repay is unknown.
This case shares connections with the collapse of the Shield Master Fund in June 2024, which ASIC notes "involves some of the same persons and companies," pointing to a wider pattern of alleged financial mismanagement and fraud.
