Disgraced former First Guardian Master Fund chief investment officer Simon Selimaj has admitted to blowing a staggering $111,445 on a luxury Hermès crocodile-skin Birkin 30 handbag, a revelation that comes just months after 6,000 devastated Australian investors were locked out of their retirement savings. The lavish purchase was made in November 2024 as a gift for a mystery woman whose surname Selimaj claimed he could not recall during intense questioning by liquidators in Melbourne this week.
Collapse of First Guardian and Shield Master Fund
First Guardian and its related Shield Master Fund collapsed in May 2024, owing approximately $1.2 billion and affecting more than 12,000 investors. Among those impacted is Natalie Abberfield, the ex-wife of former deputy prime minister Barnaby Joyce. Liquidators have so far recovered only $1.6 million from First Guardian, highlighting the severe financial shortfall and mismanagement.
Extravagant Spending Spree Unveiled
The Hermès handbag was not an isolated indulgence. Selimaj forked out another $41,000 on a second Birkin bag in early 2024, gifting it to his former partner, who later sent the expensive accessory to family overseas. Between 2022 and 2025, he splashed a total of $374,000 at Hermès, including $80,000 on a Birkin 25, along with thousands more on luxury extras such as a $5,295 belt and a $6,355 blanket.
Further allegations include a $548,000 Lamborghini Urus registered in Selimaj's name, which is suspected to have been purchased using money from the fund. The court heard that Selimaj channeled hundreds of thousands of dollars to his son, Ferris Sallka, in early 2025, with the cash quickly moved on to others amid claims it was owed by First Guardian. He also sent over $800,000 to his former partner in just three months, including funds used to clear her loans.
Financial Desperation and Legal Battles
Despite this history of opulent spending, Selimaj now claims to be broke and is seeking permission to sell three burial plots to afford legal representation. Grave internment rights can fetch up to $45,000 in New South Wales cemeteries, underscoring his dire financial situation. First Guardian and its responsible entity, Falcon Capital, are under investigation for the fund's demise, with directors Simon Selimaj and David Anderson at the center of the probe.
Allegations Against David Anderson
David Anderson, director of the fund and its parent company, Falcon Capital Limited, is accused of siphoning $5.6 million into his ANZ account without any legitimate basis apparent to ASIC or disclosed to investors. His assets were frozen in February, and his passport was seized as liquidators and investigators combed through his financial records. Anderson is also alleged to have moved $274 million overseas after learning of ASIC's investigation into financial irregularities.
Selimaj blames Anderson for the fund's decisions, claiming he is personally owed $2.1 million after investing all his wealth in the business. He told the court he did not draw a salary from the fund but received management fees, stating, "I contributed a lot of money to the business, to the bank accounts, to fund all the enterprises David was setting up. I'm the one that suffered the most for the benefit of others."
Courtroom Drama and Ignorance Pleas
During the proceedings, Selimaj broke down in court, saying, "I trusted him like my brother, I trusted everything about him. He's broken me. He's broken my name, my future, my everything." However, when presented with evidence by liquidators tracing missing money, he repeatedly pleaded ignorance, claiming he did not recognize payments or documents, even those bearing his own signature.
For instance, when questioned about the write-off of a $7.8 million loan from First Guardian to his company Aurea Management, executed by Anderson in March 2024, Selimaj responded, "Never seen it, not aware, no idea." This write-off occurred just two months before the fund suspended redemptions. The court was also shown dozens of payments from First Guardian's private equity fund to lead generator Empire Wealth Group in 2019 and 2020, each worth thousands of dollars when Empire signed up a new client.
Investment Mismanagement and Shortfalls
Despite overseeing the listed equity component of the fund, Selimaj could not account for a nearly $10 million shortfall identified by liquidators in the fund's Interactive Brokers trading account. While $43 million was invested, only $33.6 million was received. Selimaj admitted, "I don't know what David's done with those accounts. I don't know. I didn't see performance returns for a while, so I don't know... I'm not involved in the admin area. I have no idea."
First Guardian primarily invested in unlisted assets, including pubs and restaurants, and handed tens of millions of dollars to property developer Paul Chiodo, whose Shield Master Fund is also now in liquidation. Selimaj recounted a hostile first meeting with Chiodo in St Kilda, Melbourne, where he called him a derogatory term and attempted to remove him from their circle, warning Anderson about Chiodo's character.
As investigations continue, the scandal highlights severe financial mismanagement and lavish spending at the expense of thousands of investors, with many left grappling with lost savings and uncertain futures.
