• ASIC alleges Ferras Merhi did not disclose key information
• Court told he had interests in Cayman Island company
• READ MORE: Aussies face losing super as First Guardian Master Fund collapses

By CAITLIN POWELL – NEWS REPORTER – UK Daily Mail

A financial adviser allegedly failed to declare interests in a business which took millions of dollars linked to collapsed superannuation funds First Guardian and Shield, the Federal Court has heard.

During an appearance on Thursday, lawyers representing corporate watchdog ASIC said receivers should be appointed for the property of Melbourne-based Ferras Merhi who encouraged thousands of his firm’s clients to invest in the failed funds.

‘Since the disclosure order came into effect on February 18, Mr Merhi has repeatedly only disclosed assets once they’ve been discovered by ASIC,’ Justice Mark Moshinsky heard, The Australian reported.

Among the interests Mr Mehri allegedly failed to disclose were sources of wages and dividends received, property interests, and shareholdings, the court was told.

Financial advisor Ferras Mehri encouraged thousands of his clients to invest in collapsed superannuation funds First Guardian and Shield

The watchdog alleged he did all of this while receiving millions of dollars.

According to ASIC, Mr Merhi used marketing companies to drive clients to his financial advice businesses, Venture Egg and Financial Services Group Australia, which are now in liquidation.

Between 2020 and 2024, Mr Merhi and advisers working for him allegedly directed about 6,000 clients to invest around $296 million of their superannuation into the First Guardian Master Fund and about $230 million into the Shield Master Fund, ASIC said.

In return, it is alleged Mr Merhi’s businesses received nearly $18 million in upfront advice fees, as well as more than $19 million from entities associated with First Guardian for marketing the fund to clients. 

Both funds have since collapsed.

ASIC deputy chair Sarah Court described the matter as ‘misconduct on an industrial scale’.

‘This type of conduct doesn’t just undermine the integrity of the financial advice and superannuation industries, it can have a devastating impact on people’s lives,’ she said.

ASIC also alleges Mr Merhi implied to clients that the fund was operated by Macquarie. 

His property assets have been frozen, and he is currently prevented from leaving the country.

For more on this story go to: Daily Mail