Sydney firm faces liquidation over missing $17 million, fake bonds
The corporate regulator has launched legal action to wind up financial planner Capital Guard, citing serious concerns about the firm’s handling of $17.4 million worth of investor funds.
The Australian Securities and Investments Commission (ASIC) commenced proceedings in the NSW Supreme Court on Tuesday, and said it will seek the appointment of an independent liquidator to take control of Capital Guard, investigate its affairs and recover any possible assets.
“ASIC has taken this action because it has serious concerns about Capital Guard’s management, the handling of investor funds, and whether particular bonds offered to investors existed as represented,” the regulator said in a statement.
ASIC said its investigations showed that while Capital Guard had raised approximately $17.4 million from around 80 investors, only a small proportion of those funds remained in known company bank accounts.
The corporate watchdog is concerned that Capital Guard promoted bond investments that may not have existed, misused investor money and appeared to provide false accounts to its auditor.
It also accused the company of failing to comply with a range of regulatory and reporting obligations, and alleged that Capital Guard had provided false information to its auditor.
The move comes just weeks after ASIC cancelled Capital Guard’s Australian Financial Services (AFS) licence over the sale of a fake $100,000 bond purporting to have been issued by Macquarie Bank.
ASIC said the group had engaged in “serious misconduct” when it created fake documents for a Macquarie bond that did not exist, which was used to solicit investor funds.
Capital Guard then encouraged and facilitated client investment into the fake bond, which had been marketed on its website, including arranging payment and documentation for transactions relating to the fake bond, ASIC said.
Capital Guard billed itself as “a team of dedicated financial experts with a passion for helping individuals and businesses achieve their growth potential”.
But since ASIC cancelled the company’s licence two weeks ago, that team has disappeared. Its slick website has been taken offline, and calls to a phone number listed for the company were met by an automated message concerning the regulator’s announcement.
“If your call is relating to the recent ASIC announcement, please reach out to [the Australian Financial Complaints Authority] and ASIC resources for further assistance,” the message said.
Attempts to contact Capital Guard’s sole director and shareholder Mark Anthony Tasiyan have been unsuccessful. Last week, this masthead could not reach him at an address in the outer Melbourne suburb of Wollert.
Capital Guard’s listed address on the 36th floor of the prestigious Gateway Building at Circular Quay is occupied by Servcorp, a company which offers co-working spaces and virtual offices.
On Wednesday, a ServCorp receptionist said that they could not find any records related to Capital Guard.
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Kishor Napier-Raman is a senior business writer for The Sydney Morning Herald and The Age. Previously he worked as a CBD columnist and reporter in the federal parliamentary press gallery.Connect via X or email.
