The Australian Securities and Investments Commission (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.
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.
