David Anderson, a director of the now-liquidated First Guardian Master Fund, has listed his Melbourne mansion for sale at a reduced price as investors continue efforts to recover their lost funds. The sale of the Hawthorn property, which Anderson purchased in 2020 for $9.04 million, is expected to fetch between $7 million and $7.7 million, potentially representing a loss of up to 20%. Anderson obtained permission from the Federal Court to list the home to help cover legal and liquidation fees.
The First Guardian Master Fund collapsed last year due to a series of alleged dubious investments, leaving approximately 6,000 retirement savers with an estimated $590 million in losses. The Australian Securities and Investments Commission (ASIC) has accused Anderson of siphoning $5.6 million into his personal bank account without a legitimate basis. Investigators further allege that Anderson moved $274 million overseas after ASIC initiated an investigation into financial irregularities.
FTI Consulting, appointed liquidators, has recovered only $6.2 million of the estimated $446 million owed to retirement savers. The liquidators' May report advised investors to temper their expectations, noting that much of the fund's capital was invested offshore in technology ventures that have not yet been commercialized. The net cash position of First Guardian, after expenses, is estimated at $326,000.
Proceeds from the sale of Anderson's Hawthorn mansion are not expected to directly benefit investors. Reports indicate the funds will first be distributed to a receiver, followed by remaining mortgage payments, and then to claims from Marlau Nominees and Millbrook Income Fund. Investors have faced significant hardship, with some losing nearly all their retirement savings. Canberra couple Simon and Annette Luck reportedly lost $340,000.
Fellow First Guardian director Simon Selimaj has also sought court permission to sell assets to settle legal costs. ASIC has also taken legal action against financial planning firms, including InterPrac, accused of failing to ensure authorized representatives complied with the law when recommending investments in First Guardian and the Shield fund. While platform trustees Macquarie and Netwealth have remediated some investors, others, such as Equity Trustees and Diversa Trustees, are contesting allegations of wrongdoing in court.