ASIC Secures Court-Ordered Liquidation of Capital Guard Over Investor Fund Concerns

The Australian Securities and Investments Commission (ASIC) has secured court orders to wind up Capital Guard AU Pty Ltd and appoint independent liquidators as part of its ongoing enforcement action against the firm over concerns about investor funds and alleged misconduct.

Following ASIC's application, the Supreme Court of New South Wales ordered Capital Guard to be wound up on just and equitable grounds and appointed Robert Kirman and Jacinta Nielsen of McGrathNicol as joint and several liquidators. They will take control of the company, investigate its affairs, preserve assets and seek recoveries for creditors and investors.

ASIC said its investigation indicates that Capital Guard raised approximately A$17.4 million from around 80 investors, while only a small proportion of those funds remained in known company bank accounts and payment platforms. The regulator has expressed concerns over the handling of investor funds, the promotion of bond investments that may not have existed as represented, and serious governance and compliance failures.

The liquidation follows ASIC's earlier action to cancel Capital Guard's Australian Financial Services (AFS) licence after finding the company had engaged in serious misconduct, including promoting a fake Macquarie Bank bond, providing false documents to its auditor and publishing misleading statements on its website.

ASIC said the appointment of independent liquidators will support an independent investigation into the company's affairs, help preserve remaining assets and maximise potential recoveries for investors where possible. The regulator added that its investigation into Capital Guard and related individuals and entities remains ongoing.