Sydney Firm Faces Liquidation Over Missing $17m, Fake Bonds

Sydney Firm Faces Liquidation

The Australian Securities and Investments Commission (ASIC) has launched a probe into Sydney-based financial planner Capital Guard, alleging that the firm promoted fake bonds worth $17.4 million to unsuspecting investors.

Capital Guard, a team of dedicated financial experts with a passion for helping individuals and businesses achieve their growth potential, according to its website, has disappeared since ASIC cancelled its Australian Financial Services (AFS) licence two weeks ago.

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.

Attempts to contact Capital Guard's sole director and shareholder Mark Anthony Tasiyan have been unsuccessful. Last week, attempts to reach him at an address in the outer Melbourne suburb of Wollert failed.

ASIC said 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 regulator 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.

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. A ServCorp receptionist said that they could not find any records related to Capital Guard.

ASIC's Concerns

ASIC has serious concerns about Capital Guard's management, the handling of investor funds, and whether particular bonds offered to investors existed as represented. ASIC said its investigations showed that the company had raised approximately $17.4 million from around 80 investors.

The Investigation

ASIC will seek the appointment of an independent liquidator to take control of Capital Guard, investigate its affairs and recover any possible assets. The regulator has accused the company of failing to comply with a range of regulatory and reporting obligations.

Next Steps

The NSW Supreme Court has been informed of the ASIC's decision to take legal action against the firm. An independent liquidator will be appointed to investigate the company's 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.