In a striking development, a significant number of Australians might have unknowingly forfeited part or all of their retirement nest eggs following the collapse of two high-risk superannuation products. This situation has left regulators in a frantic search to identify and assist potential victims.
David Berry, the chief executive of the Compensation Scheme of Last Resort, highlighted that around 12,000 individuals were affected by the downfall of the First Guardian Master Fund and Shield products. However, to date, only 2,000 complaints have been filed with the Australian Financial Complaints Authority (AFCA).
“What happened to the other 10,000?” Berry questioned, emphasizing the need for these individuals to come forward. “If you received questionable advice, you might be eligible for compensation. It’s crucial to lodge a complaint with AFCA and check your super balance immediately.”
Renowned financial advisor Scott Pape, also known as the Barefoot Investor, speculated that the missing 10,000 victims might be unaware of their loss. He noted, “The vast majority of people affected likely fell for an innocent-looking advertisement on Facebook promising a free superannuation comparison or review.”
Barefoot Investor Scott Pape said it was likely the missing 10,000 victims have no idea it happened.
‘The vast majority of people who got screwed innocently clicked on a Facebook ad offering a free super comparison or review,’ he said.
‘They were taken to a page that asked for their phone number. Then a smooth-talking spiv convinced them to move their super into a dog-turd super fund.
‘Then their money went poof.’
Barefoot Investor Scott Pape (pictured) said it was likely the missing 10,000 victims have no idea it happened after being lured to move their super into a ‘dog-turd super fund’
Compensation Scheme of Last Resort chief executive David Berry (pictured) said 10,000 people were exposed to the failed funds and remain unaware
Thousands of Aussies were exposed to the failed First Guardian Master Fund and Shield products but only 2,000 complaints have been lodged with AFCA
Pape said most Australians never look at their super account which is exactly what ‘crooks’ were counting on.
‘If you, or someone you love, ever clicked on a social media ad and switched your super, or if a financial advisor has switched you into a super fund, go to (takeyoursuperback.com) right now to find out if you’re affected.’
First Guardian and the related Shield Master Fund collapsed in May 2024 owing about $1.2billion, with more than 12,000 investors believed to have been affected.
Liquidators have so far recovered only $1.6million.
It is alleged First Guardian director David Anderson siphoned millions of dollars from the fund into his personal ANZ bank account and moved $274million offshore after learning he was under investigation.
Fellow director Simon Selimaj had a $548,000 Lamborghini Urus registered in his name which is alleged to have been bought using money from the fund.
Industry sources say many victims were drawn in through social‑media ads offering free super reviews, funnelling users into lead‑generation businesses that passed their details to unlicensed or conflicted advisers.
Consumers were persuaded to roll over large super balances into high‑risk or poorly governed funds, many of which later collapsed.
First Guardian fund director David Anderson (pictured) is accused by ASIC of siphoning millions of dollars into his personal ANZ bank account and shifting money overseas
Sydney mental health nurse Caroline Grey, 64, lost $560,000 in the First Guardian Master Fund superannuation scandal and now struggles to get out of bed after her dreams of retirement were cruelly dashed.
‘This was not an everyday scam – it was theft on a massive scale,’ the mother-of-three told the Daily Mail.
‘My future’s been stolen.
‘I’m a normal everyday person. I pay my tax. I have always followed the rules. I care about the community. I work hard to provide for my family and for my own future.’
In 2020, Grey’s husband Michael Johnson spotted a Facebook ad suggesting he check the value of his superannuation funds.
The couple had a Zoom meeting with the now-collapsed financial advice firm United Global Capital (UGC) which gave them tips to improve their super.
The couple decided to combine their savings into a self-managed super fund totalling $560,000, which they later invested in First Guardian.
‘I didn’t do anything stupid or wrong and [the ordeal] could happen to anybody,’ Ms Grey said, adding she had researched UGC and done her due diligence.
The collapse of First Guardian Master Fund has devastated everyday Aussies like Sydney mental health nurse Caroline Grey, 64, and her husband Michael Johnson
‘They had no red flags. I could see nothing on ASIC about them, no complaints. There were plenty of positive reviews about them… and they had been around a long time.’
It comes as the Australian Financial Complaints Authority revealed it received a record number of complaints in 2025, with 111,373 complaints coming through the door – a 14 per cent increase from the 2024 calendar year.
AFCA chief ombudsman David Locke said Shield and First Guardian complaints will continue to be a key focus for AFCA throughout 2026.
‘We have now issued 44 decisions, including five lead decisions, and have 500 simultaneous investigations underway, and we remain firmly committed to progressing these matters as quickly as we can,’ he said.
ASIC Commissioner Alan Kirkland told a Parliamentary Joint Committee earlier this month it had conducted 11 rounds of direct mail and email to investors.
‘We are trying to do all we can including what we can through the mainstream media,’ he said.
‘We are doing what we can to encourage people who have lost money to make complaints.
‘Making a complaint to AFCA as a key way to get access to compensation and if AFCA makes a determination against a firm it is required to pay, if not, then the Compensation Scheme of Last Resort.
‘If in doubt, make a complaint. AFCA can then decide.’
The Compensation Scheme of Last Resort is a government initiative that provides up to $150,000 for consumers with unpaid financial misconduct claims.
