Australian regulators have tightened restrictions on two directors of Falcon Capital Limited, the company behind the troubled First Guardian Master Fund, as part of an ongoing investigation into the $274 million fund’s management and investor losses.

Australian Court Bars First Guardian Directors From Leaving Country

The Federal Court has issued interim orders preventing David Anderson and Simon Selimaj, both directors of Falcon Capital, from leaving Australia until February 27, 2026.

The court also froze the assets of Mr. Selimaj, barring him from moving property out of the country, selling or mortgaging assets, taking on new debts, or accessing funds in his bank accounts.

These measures are designed to ensure both men remain available to assist the Australian Securities and Investments Commission (ASIC) with its investigation and to safeguard assets for investors.

ASIC is also seeking to appoint a receiver and manager over Mr. Selimaj’s personal property, with a court hearing scheduled for July 22.

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$274 Million Fund

The crackdown follows a series of escalating interventions since May 2024, when Falcon Capital suspended most applications and withdrawals from the First Guardian Master Fund. Since then, the majority of the fund’s approximately 6,000 investors have been unable to access their money.

In February, the court froze assets belonging to Falcon, First Guardian, and Mr. Anderson. By April, liquidators were appointed to wind up Falcon, First Guardian, and related subsidiary funds, and a receiver was assigned to Mr. Anderson’s property.

ASIC’s investigation centers on concerns about how First Guardian was managed and the risks faced by investors. According to the regulator, many investors were referred by lead generators to financial advisers, who encouraged them to move their superannuation savings into First Guardian, sometimes via self-managed super funds.

Investors Remain Locked Out

ASIC has raised questions about overdue receivables, payments to marketing entities, and potential conflicts of interest involving investments linked to company insiders.

ASIC stated, “ASIC sought the orders to ensure Mr Anderson and Mr Selimaj remain in Australia to assist ASIC with its investigation and to preserve assets while ASIC’s investigation is continuing.”

The investigation remains ongoing, and ASIC has not alleged any wrongdoing at this stage. The regulator said it will continue to update investors and the public as more information becomes available.

This article was written by Damian Chmiel at www.financemagnates.com.RegulationRead More

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