Sequoia confirms ASIC Interprac Shield Funds scrutiny
Publicly-listed financial services group, Sequoia Financial Group has gone public telling the Australian Securities Exchange (ASX) that its wholly-owned subsidiary, Interprac Financial Planning is the subject of an ASIC investigation related to the Shield Master Trust.
Sequoia notified the ASX late on Monday that a company already subject to ASIC action, Venture Egg and its principal, Ferras Merhi are authorised representatives of Interprac.
It noted that ASIC is investigating Merhi and various entities associated with him, in connection its investigations concerning the Shield Master Fund and the First Guardian Master Fund and had commenced proceedings in the Federal Court against Merhi and has obtained interim freezing orders.
The statement noted that ASIC has commenced an investigation into suspected contraventions of the Corporations Act and the ASIC by Interprac and/or its representatives.
The statement said Interprac is:
- Assisting ASIC so that the interim freezing orders have not been, and are not, breached by Mr Merhi and/or other of his associated entities;
- Reviewing:
- The obligations of the rating authorities with respect of the Funds
- Its obligations as to the advice provided compared to the performance of, and conduct engaged by, the funds;
- Considering the obligations of trustees, auditors and custodians of the Funds
- Considering the obligations of platform providers through which the investments into the Funds were made
- Reviewing the operations and systems to ensure efficiency, compliance, and adaptability to changing environment; and
- Cooperating fully with ASIC
On 16 February 2025, the AFR published an article on Shield Master Fund, reporting that Ferras Mehri’s firm (Venture Egg), which is an authorised representative of InterPrac, has 5000 clients with about $250 million in Shield. On 4 March 2025, the Australian published an article stating Venture Egg has about 3,600 clients with $192m invested in First Guardian. Both Shield master Fund and First Guardian have collapsed with clients facing significant losses. On 25 July 2024, the ABC published a story describing the cold calling high pressure sales tactics utilised by groups like Venture Egg, that lead to many clients being placed into Shield Master Fund and exposed to substantial losses. Ferras Mehri is still authorised by Interprac. Now, months later, Sequoia want to blame every other stakeholder under the sun. This is the next CSLR black swan event staring us in the face.
How the hell does someone take 1/2 Billion dollars and collapse both funds.
In terms of CSLR innocent quality advisers could be up for $30k each while the perpetrators will probably get a slap on the wrist as with Dixon’s… no justice in this.
Could be $750mill all gone here…CSLR payments $50,000 per adviser ($750mil/15000)…. This is the one that breaks the system or the advice community….
Waiting until a market meltdown to make this ASX announcement is a clever approach. It is interesting that the focus by ASIC is the loss of money across the two funds in question. The real story is how did Interprac allow this practice to get to this level without the required supervision.
It’s too clever. If it is price sensitive information, they should have informed the market when this investigation commenced.
INTERPRAC and Venture Egg both are responsible for this given its upon their advise that people invested money .. risk accepted is 7-10% and not to lose almost all funds and now both these advisors hiding behind each other. ASIC need to one send them to jail and make arrangement and compensation to the investors as a case where in these financial vultures never attempt to do such a thing….
So Verture Egg is cracked and goes broke, PI will be lucky to pay 1 claim on policy and 1 more on reinstatement. Then nothing.
Interprac & Sequoia use the Dixon’s Illegal Phoenix play book and walk away paying nothing whilst shifting the entire businesses (excluding Verture’s broken Egg) to be called WInterprac & Shequoia, caring on business as usual.
ASIC do their usual nothing.
AFCA dump it all on CSLR for good adviser to pay.
Can the Govt designed system be any more moronic, corrupt and morally contempt to good advisers.
Oh and forgot that the CSLR excludes MIS, so Shield master Fund and First Guardian pay nothing.
And any directors, managers, etc with them pay nothing.
This raises the question, what is the point of the AFSL system and licensee oversight of advisers. Clearly in all instances such it does not work. This provides grounds for questioning the purpose of it, because it’s always sold on “oversight” of advisers.
How have they not stood this guy down, or at the very least fastracked an internal review in interprac to see if there is advice issues. Interprac is becoming a stain on the industry if they continue to allow this.