Court Appoints Receivers and Liquidators
The Federal Court has imposed further restrictions on Ferras Merhi and his firms, with ASIC stating that they received a combined $37 million in fees related to First Guardian and Shield.
On Monday, Federal Court Justice Mark Moshinsky made interim orders restraining Merhi from operating in the financial services industry.
Merhi engaged in “unconscionable conduct, failed to act in the best interests of clients, gave conflicted advice, and provided defective statements of advice while receiving millions of dollars”
- Between 2020 and 2024, Merhi and his advisers allegedly advised clients to invest around $296 million into First Guardian.
- They also allegedly advised clients to invest around $230 million into Shield.
Author's summary: Court restricts Merhi's financial operations.