Slater and Gordon investigating major investment funds accused of superannuation ponzi scheme

Slater and Gordon Lawyers are investigating a potential class action on behalf of investors in First Guardian Master Fund and Shield Master Fund for allegedly operating a Ponzi scheme with thousands of Australians’ superannuation savings.

Slater and Gordon Principal Lawyer in Class Actions, Andy Wei, said that the firm is investigating claims that investors were advised to put their precious superannuation savings into largely unreliable funds.

What we’re seeing here is potentially deliberate misleading of investors, many of whom are everyday Australians looking to secure their nest eggs. They were repeatedly assured that their superannuation would flow into diversified portfolios with steady returns.

“However, recent information shows that these funds were largely illiquid with their values grossly overstated,” Mr Wei said.

Illiquid assets are investments that cannot be easily sold or converted into cash without significant loss of value, such as property developments, unlisted securities, or private loans.

Over $1 billion in superannuation has been potentially wiped out, leaving more than 12,000 Australians out of pocket. These are people’s savings, and they deserve far better than this.

“Superannuation is meant to be tightly regulated, and many investors likely believed their money was safely managed by trusted, blue-chip superannuation companies.

"We encourage investors who have been affected to come forward and contact our firm on 1800 071 827, as information will help us assess the best path for recovery, including whether a class action is viable.

“We are particularly concerned for investors in First Guardian Master Fund, as FTI Consulting – the liquidators for First Guardian – have now confirmed that they expect ‘a substantial shortfall of recoverable assets,’” Mr Wei Said.

Slater and Gordon has a strong track record of holding prominent investment funds to account, including through the national “Get Your Super Back” campaign and by helping investors recover losses from failed schemes such as Storm Financial, IPO Wealth, Provident Capital, Australian Capital Reserve and Fincorp.