The Australian Securities and Investments Commission (ASIC) has filed a winding-up application in the New South Wales Supreme Court against Capital Guard AU, a formerly licensed investment company accused of promoting fake bond investments and engaging in serious misconduct.

ASIC's investigations indicate that Capital Guard raised more than $17 million from around 80 investors across Australia, but only a small proportion of those funds remain in the firm's accounts. The regulator expressed serious concerns about the company's handling of investor funds and has requested the appointment of a liquidator to investigate its affairs and preserve remaining assets.

According to ASIC, investor funds were used inconsistently with how Capital Guard had represented they would be invested. The company is accused of promoting a fake Macquarie Bank bond, providing false documents to its auditor, and making misleading statements.

One affected investor, Gail MacDonald, who invested $250,000, feared for her retirement savings. She had arranged an in-person meeting at Capital Guard's Sydney office at 1 Macquarie Place before investing, emphasizing the importance of meeting representatives face-to-face rather than investing online or by phone.

Capital Guard held a financial services licence since August 15, 2017, but the previous financial services business was sold in 2024 to its current management, according to ASIC.

Sources

ABC Australia News