ASIC has secured Federal Court interim orders restraining Ferras Merhi from operating within the financial services industry following ASIC's allegations that Mr Merhi engaged in unconscionable conduct, failed to act in the best interests of clients, gave conflicted advice, and provided defective statements of advice while receiving millions of dollars.
This outcome forms part of ASIC's ongoing investigations into the Shield Master Fund and First Guardian Master Fund.
Today's outcome immediately restrains Mr Merhi, or through his servants, agents or employees, from carrying on any business related to financial products or financial services, providing financial product advice, dealing in financial products, or marketing superannuation or managed investment scheme products.
In his reasons for ordering the interim injunctions against Mr Merhi, Justice Moshinsky said he was satisfied that the public interest requires the injunctions to be made, and that there is an appreciable risk that, unless restrained, Mr Merhi will continue to provide financial product advice in a manner that contravenes the Corporations Act.
ASIC was also successful in obtaining orders for the appointment of a receiver to identify all assets and liabilities of Mr Merhi and provide a report to the Court within 90 days. Mr Merhi's assets have been frozen since February 2025, and he has been restrained from leaving Australia since July 2025 (25-024MR).
A provisional liquidator has also been appointed to Venture Egg Financial Services Pty Ltd and United Financial Advice Pty Ltd, being entities through which Mr Merhi and other financial advisers provided financial advice to clients, and must report to the Court within 28 days on the financial position, solvency and likely returns to creditors of the two businesses, as well as any suspected misconduct by officers.
Between 2020 and 2024, Mr Merhi and advisers working for him allegedly advised clients to invest around $296 million of their superannuation into First Guardian and around $230 million into Shield. In return, ASIC alleges Mr Merhi's businesses received:
- nearly $18 million in upfront advice fees; and
- more than $19 million from entities associated with First Guardian for marketing First Guardian to clients.
Both First Guardian and Shield have now collapsed, leaving thousands of clients' superannuation at risk.
Background
In February 2025, the Court made interim freezing orders over Mr Merhi's property. These orders remain in place until 12 December 2025 (25-024MR).
ASIC cancelled the Australian Financial Services Licence of Financial Services Group Australia Pty Ltd (FSGA), effective 7 June 2025 and permanently banned its responsible manager (25-102MR).
In July 2025, the Court made travel restraint orders against Mr Merhi. Those orders prevent him from leaving or attempting to leave Australia until 12 December 2025, or until further order of the Court (25-024MR).
ASIC has taken a number of actions to freeze assets and restrain travel of individuals associated with ASIC's investigations into the circumstances surrounding Shield and First Guardian.
ASIC's investigations into the matters connected to Shield and First Guardian are continuing.
Consumer information
ASIC has issued a consumer alert warning amid increasing concerns that people are being enticed to invest their retirement savings into complex and risky schemes: 25-120MR Consumer alert. Be super smart, visit ASIC's Moneysmart campaign page.
Stay Updated: ASIC will post important updates on its dedicated webpages: Shield Master Fund and the First Guardian Master Fund.
If you were a client of Mr Merhi, Venture Egg or FSGA and have concerns about the conduct of your adviser or the advice you received, you should consider lodging a complaint with the Australian Financial Complaints Authority (AFCA).
AFCA is the external dispute resolution scheme for financial complaints in Australia and must deal with complaints independently and fairly. AFCA's service is free for consumers.
AFCA can be contacted by:
- calling 1800 931 678 for free (9am - 5pm Melbourne time), or
- lodging a complaint online on AFCA's website.
AFCA will consider your complaint if it meets the eligibility criteria.
Important deadline: In cancelling FSGA's licence, ASIC required FSGA to remain a member of AFCA until 4 June 2026. If you intend to lodge a complaint with AFCA in relation to advice received from FSGA you should do so by 4 June 2026.
