The corporate regulator has asked the Federal Court for permission to widen its case against former financial adviser Ferras Merhi, alleging unconscionable conduct, failures to act in clients’ best interests, conflicted advice and defective statements of advice — all while receiving millions of dollars linked to two collapsed investment schemes.
ASIC says Mr Merhi used marketing companies to funnel potential clients into his advice businesses, Venture Egg and Financial Services Group Australia (FSGA) (in liquidation). Between 2020 and 2024, Mr Merhi and advisers working for him allegedly steered clients to invest about $296 million of their superannuation into the First Guardian Master Fund and around $230 million into the Shield Master Fund. 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 that fund to clients. Both funds have since collapsed, leaving thousands of clients’ retirement savings at risk.
ASIC Deputy Chair Sarah Court said the action forms part of ongoing enforcement activity targeting misconduct involving superannuation. “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,” the Deputy Chair said.
The regulator will seek to allege Mr Merhi, Venture Egg Financial Services Pty Ltd and United Financial Advice Pty Ltd breached multiple financial adviser obligations designed to protect clients and that their conduct and business model were unconscionable. It will also seek to allege that statements of advice given to clients contained false or misleading statements by implying the Shield Master Fund was operated by Macquarie, and that Mr Merhi falsely represented he had no vested interest in the recommended funds when he was involved in marketing both schemes and received tens of millions of dollars for marketing First Guardian.
ASIC contends clients were led to believe they were receiving independent, tailored advice but were instead channelled into pre-determined, high-risk portfolios that served the financial interests of Mr Merhi and his businesses.
The application to add these allegations requires the Court’s approval. If granted, ASIC will seek injunctions banning Mr Merhi from any involvement in a financial services business, the appointment of a receiver to his personal property, and provisional liquidators to Venture Egg Financial Services and United Financial Advice.
ASIC intends to allege contraventions including unconscionable conduct in connection with financial services, providing defective disclosure documents, failing to act in clients’ best interests, providing inappropriate advice and giving advice where there was a conflict between clients’ interests and the advice provider. It also alleges FSGA failed to ensure its representatives complied with best interests obligations.
The Court made interim freezing orders over Mr Merhi’s property in February 2025, which remain in place until 12 December 2025. ASIC cancelled FSGA’s Australian Financial Services licence effective 7 June 2025 and permanently banned its responsible manager. Travel restraint orders made in July 2025 prevent Mr Merhi from leaving Australia until 12 December 2025, or further order. ASIC says investigations connected to Shield and First Guardian are continuing.
Consumers concerned about advice received from Mr Merhi, Venture Egg or FSGA can lodge a complaint with the Australian Financial Complaints Authority. ASIC requires FSGA to remain an AFCA member until 4 June 2026, and complaints relating to advice from FSGA should be filed by that date. The regulator has also published dedicated webpages for updates on the Shield Master Fund and the First Guardian Master Fund.
