Qantas Collapse Leaves Thousands at Risk of Losing Superannuation as ASIC Freezes Director Assets
Juan Carlos Sanchez, a 41-year-old Melbourne business owner, deeply regrets his decision to reinvest his superannuation in mid-2023. Approached by financial advisory firm Venture Egg, he was persuaded to transfer his retirement savings from ANZ into a fund called AusPrac, with lofty promises of future wealth.
“They made huge claims—$800,000, even $1 million by retirement,” Sanchez recalled. “They were relentless, like car salesmen.”
After committing his entire super, Sanchez discovered that withdrawals from the fund had been frozen. In January, he learned they had actually been suspended since May 2024. “When I got that email, my stomach dropped—I felt sick,” he said.
Rather than being diversified and invested for long-term growth, his funds were funneled into a “cash hub” controlled by the directors of the First Guardian Master Fund, an investment scheme he had never heard of.
$590 Million and Thousands of Investors at Risk
Sanchez was one of 6,000 Australians who invested a collective $590 million into First Guardian, now under investigation by ASIC. Many investors say they were misled by advisers and had no clear understanding their retirement savings were tied to the fund.
Advised to shift their super into a retail choice fund and invest in First Guardian, some investors were routed through platforms hosted by Equity Trustees, Netwealth, and Diversa. Similar tactics were used in the now-collapsed Shield Master Fund, involving $480 million from at least 5,800 Australians.
ASIC is considering legal action against Macquarie and Equity Trustees for their roles in both schemes, with a decision expected soon.
Serious Allegations Against Former First Guardian Director
First Guardian’s responsible entity, Falcon Capital, has been wound up, and its former managing director David Anderson is being investigated by ASIC. Anderson allegedly diverted tens of millions into personal projects, including failed property ventures, breweries, and a struggling restaurant group partly owned by celebrity chef Scott Pickett.
The Federal Court has frozen Anderson’s assets and banned him and fellow director Simon Selimaj from leaving the country. Public court documents reveal Anderson moved $274 million into offshore companies shortly after being alerted to the investigation.
ASIC also claims Anderson received $5.6 million in personal payments with no clear justification. He reportedly used part of the money to pay off a mortgage on a luxury Yarra River property.
Court filings suggest many of the fund’s investments were made for improper purposes or conflicted with the interests of investors. ASIC found a $81 million shortfall between investor deposits and asset values, with much of the money possibly unrecoverable.
Legal Team Pushes Back
Anderson’s lawyer, Dan Mackay of Mackay Chapman, emphasized there have been no formal findings by any court or regulator. He stated that allegations are untested and part of an ongoing investigation. “Mr Anderson does not want this to become a trial by media,” Mackay said.
Ties to Venture Egg and Other Advisers
ASIC is also investigating Ferras Merhi, the former director of Venture Egg Financial Services. Merhi is tied to more than 2,400 clients who invested $179 million in First Guardian. He allegedly received over $19 million in marketing fees, while additional payments of $21 million and $5.7 million went to companies controlled by Osama Saad and Rashid Alshakshir, respectively. Their assets have also been frozen.
Although Falcon claimed no commissions were paid to advisers, ASIC says tens of millions were secretly routed to marketing firms connected to these individuals. The regulator believes these payments may have been driven by conflicts of interest and further depleted investor funds.
Widespread Fallout
ASIC Deputy Chair Sarah Court said the schemes were “extremely complex and high-risk,” and described the investment model as operating at an “industrial scale.” The watchdog is now weighing further legal actions.
Back in Melbourne, Mr. Sanchez says he’s filed a complaint with the Australian Financial Complaints Authority (AFCA), but fears it won’t bring his money back. “This isn’t a business failing—it’s people’s retirement savings,” he said. “They’re saying we need to figure out who is owed what. The answer is simple: the retirees are.”
Others share his concern. Greg McElherron, a small business owner distributing European beverages to 400 customers nationwide, called it a “double whammy”—financial loss and a breach of trust.
