Nearly $450million is feared lost from an Australian superannuation fund after its directors went on a lavish spending spree – including purchasing a luxury Lamborghini – before the fund collapsed.
A creditor’s report has now revealed where they believe the money went, amid growing concerns that savers may never recover their funds, potentially throwing their retirement plans into chaos.
The First Guardian Master Fund was placed into liquidation in March after the Australian Securities and Investments Commission obtained a Federal Court order to freeze its assets.
FTI Consulting managing partners Ross Blakeley and Paul Harlond, who were appointed as liquidators in April, conceded creditors may struggle to get their money back.
‘In the absence of considerable recoveries from alternative potential claims in the liquidation, insufficient funds will exist to meet all claims of creditors,’ they said.
The liquidators have now revealed that $446million could conservatively be owed to retirement savers, after their superannuation invested in dubious ventures.
‘The liquidators have preliminarily estimated that claims by unitholders on a cash invested basis that have not been redeemed approximate $446million,’ they said.
‘Significant monies have been invested (or sent) offshore in foreign jurisdictions.
Australian retirements savers may struggle to recover what’s owed to them after a collapsed super fund paid millions in marketing kickbacks as a director bought a Lamborghini
‘Much has been invested in technology ventures, none of which appear to have yet been commercialised and are thus not generating an income.’
David Anderson 46, a director of the super fund and parent company Falcon Capital Limited, is accused of siphoning millions of dollars into his personal ANZ bank account.
‘There is evidence that one director, Mr Anderson, or entities or individuals associated with Mr Anderson have also been parties to certain transactions and/or the receipt of considerable monies from the company and/or funds,’ the report said.
‘These transactions require further investigation and explanation by Mr Anderson.’
Before the fund collapsed, he had also bought a $9million Yarra River mansion in the upmarket Melbourne suburb of Hawthorn in 2020.
Fellow director Simon Selimaj, 63, had a $548,000 Lamborghini Urus registered in his name.
Like Mr Anderson, the Federal Court has banned him from leaving or trying to leave Australia until February 2026.
‘The vehicle was purchased in January 2023 by the company for $548,000 including on-road costs and was funded via a bank account controlled by the company,’ the creditors report said.
David Anderson 46, a director of the super fund and parent company Falcon Capital Limited, is accused of siphoning millions of dollars into his personal ANZ bank account
Before the fund collapsed, he had also bought a $9million Yarra River mansion in the upmarket Melbourne suburb of Hawthorn in 2020
‘On appointment the vehicle was in the possession of Mr Selimaj.’
The Lamborghini, which the liquidators have since seized, is estimated to now be worth $350,000 to $400,000, with Slattery Auctions taking possession of it.
The directors had also failed to disclose this Italian sports SUV in the report on company activities and property.
First Guardian paid more than $40million in marketing fees to Cornerstone Strategic Management – associated with Venture Egg Financial Services, along with the now liquidated Atlas Marketing and Indigo Group, between August 2021 and February 2024.
‘It appears these monies were ultimately sourced from the fund,’ the creditors’ report said.
‘There are concerns that the payment of fees purportedly for marketing services may have given rise to a conflict of interest, breach of duties, and has depleted investor funds.
‘Further, there are concerns that the payment of marketing services fees was not disclosed in the financial services guide or product disclosure statements.’
Australians had invested with First Guardian after being contacted by Venture Egg Financial Services, whose director Ferras Merhi was a VFL ruckman.
The Federal Court froze Mr Merhi’s assets in February following an ASIC application.
First Guardian’s directors also potentially inflated the value of its assets.
‘Further, the liquidators consider the value of the assets may have been overstated in the accounts,’ the report said.
‘The overall recoverable value of the investments is likely to be considerably less than their combined book value and the view expressed by the directors.’
The $446millon owed to creditors is regarded as a conservative amount as ‘investments and loans made’ potentially ‘increase creditor claims’.
Mr Anderson’s defence lawyer Dan Mackay, a director of Mackay Chapman, previously said ‘there have been no findings of fact or law by any court or tribunal, nor by ASIC’.
‘Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,’ Mr Mackay said.
