The Australian Securities and Exchange Commission (ASIC) has asked the federal court to extend the existing proceedings against former financial adviser Ferras Merhi to claim to have dealt with unconscious behavior, failed to act in the interests of customers,
ASIC will seek to claim that Mr Merhi has used marketing companies to promote potential customers in his financial advice business, Venture EGG and Financial Services Australia (FSGA).
Between 2020 and 2024, Mr Merhi and the advisers working for him allegedly informed customers to invest about $ 296 million from their retirement at the first Guardian fund and about $ 230 million in the main fund Shield.
In return, ASIC claims that Mr Merhi’s operations received:
- Nearly $ 18 million in prior advice fees. and
- More than $ 19 million from entities associated with the First Guardian for first guardian marketing to customers.
Both chapters have now collapsed, leaving thousands of customer retirement.
ASIC will also seek to claim that Mr Merhi, Venture EGG Financial Services Pty Ltd and United Financial Advice Pty Ltd violated numerous obligations of financial advisors aimed at protecting customers and that their behavior and business model were unconscious.
The regulatory authority will seek to argue that Mr Merhi provided customers of advice statements containing false or misleading statements about the nature of the SHIELD main fund, implying that they were operating by Macquarie. Asic will also seek to claim that Mr Merhi falsely represented that he had no interest in the recommended funds when he actually participated in the marketing of both programs and received tens of millions of dollars for the First Guardian marketing.
Customers allegedly led to believe that they received independent, custom tips. Instead, they are allegedly channeled into predetermined investment portfolios that were extremely dangerous and served by Mr Merhi’s financial interests and his businesses.
ASIC’s application for the submission of these allegations is subject to the approval of the Court. If the Court requests, ASIC will seek Mr Merhi’s ban by any involvement in a financial services undertaking, appointing a recipient to Mr Merhi’s personal property and temporary liquidators to withdraw financial services and united financial advice.
In February 2025, the court made temporary freezing orders against Mr Merhi’s property. These orders remain in force until 12 December 2025.
ASIC canceled the permission of the Australian Financial Service of FSGA since June 7, 2025 and permanently banned its responsible manager.
In July 2025, the court made a trip to Mr Merhi. These commands prevent him from leaving or trying to leave Australia by 12 December 2025 or until the court order.