Exclusive: Thousands of Australians are potentially unaware their retirement savings have been wiped out as victims of the double collapse of First Guardian and Master Shield warn of postcode hotspots for lost money.
Victoria is among the three states hardest hit by the $1.1 billion crisis.
Four Melbourne postcodes were among the top 10 worst affected areas, according to data released by the Australian Securities and Investments Commission (ASIC).
ASIC found the highest concentration of victims was in the suburbs of Cranbourne, Cranbourne East, Cranbourne North, Werribee, Hoppers Crossing, Truganina and Craigieburn.
Fellow investor and advocate Melinda Key said many investors “still don’t even know they’ve been affected.”
Melbourne resident Susie Zyak, 54, had just lost her mother when she discovered her $574,000 pension balance had been reduced to almost nothing.
The former Qantas employee’s pension fund was transferred from her former airline industry fund to First Guardian in 2022 after she took advice from a financial adviser at Venture Egg.
ASIC has since banned the adviser from engaging in financial services business or lending activities.
Susie Zyak pictured with her mother. Susie Zyak
“I was laid off, I wasn’t working, the fees were high and I was thinking about my future,” Zjak told nine.com.au.
“We all want our retirement to be enjoyable and easy.
“But I didn’t have a long working career to invest in a high-risk fund.”
After switching funds, Zyak’s savings initially performed well.
This scheme gave her a significant increase from approximately $395,000 to $574,000 over the next two years.
But after the sudden collapse of the First Guardian Master Fund in 2024, almost every dollar disappeared overnight.
“I thought I was going to have a massive heart attack. I thought my life was over,” Zyak recalled.
The account was emptied and she was left with just a few thousand dollars to transfer to another active super fund and start virtually from scratch.
Zyak has battled cancer, is recovering from a severe arm injury and has been unable to work to make up for some of her losses.
The former Qantas employee, 54, lost more than $500,000 in the collapse. Susie Zyak
Around 6,000 Australians have lost super or had their funds frozen in the collapse of First Guardian.
ASIC is conducting numerous investigations into conduct relating to the First Guardian Master Fund, which was managed and operated by Falcon Capital Limited.
A further 5,800 people were affected by the collapse of the Shield Master Fund investment scheme.
It is understood that these schemes attracted thousands of investors through cold calling from lead generators who then connected potential investors with financial planners.
ASIC alleges these financial advisers persuaded people to invest their super assets and funnel hundreds of millions of dollars into Shield and First Guardian funds.
The funds and some of their associated advisers were accused of financial irregularities that led to the collapse.
Key, who heads the investor advocacy group SOS Save Our Super, lost about $368,000 after the First Guardian disaster.
She worked to identify the highest concentration of First Guardian and Shield investors in Australia, many of whom live near Zyak.
The next step is to require local MPs in these electorates to speak to the public and warn potential victims to check their supers.
“It’s not just zip codes,” Key said.
“These are communities… families.
“Right now there are people going about their daily lives, not knowing that their retirement savings could be at risk.”
Melinda Key runs the SOS Save Our Super Facebook page. Delivered
Nine.com.au has contacted state MPs for the affected postcodes, Ross Spence, Sarah Connolly, Ros Spence and Pauline Richards, for comment.
Zyak said she had become “obsessed” with advising friends, family and acquaintances to review their pension funds and gain insight into how investment schemes worked.
The disappearance of the next egg caused Zjak to rethink his retirement.
She lodged a complaint with the Australian Financial Complaints Authority (AFCA) and is now awaiting news of her recovery.
Other First Guardian investors are expecting a return on their investment as a result of AFCA’s successful decisions.
To date, AFCA has filed 3,343 complaints against Shield and First Guardian and issued 89 decisions.
“I don’t know what I can get back, but I hope I get something back,” Zyak added.
“I’ve worked all my life.
“I wouldn’t wish anyone to go through what I went through.”
The collapse of the First Guardian and Shield pension funds has devastated the lives of thousands of Australians. Nine
A spokeswoman for Assistant Treasurer Danielle Mulino previously told nine.com.au.com.au the government was concerned about investors and welcomed ASIC’s further action.
“The government is committed to ensuring that investor interests are protected and that the regulatory framework governing the investment landscape is consistent,” the spokeswoman said.
“ASIC has taken steps to begin enforcement and investor protection, including freezing assets and revoking financial licenses where appropriate.
“As these matters are before the Federal Court and form part of the ongoing investigation by ASIC and the liquidators, it would be inappropriate to make further comment or speculation.”