ASIC has obtained interim orders in the Federal Court to freeze the assets of Falcon Capital Limited, the First Guardian Master Fund, and David Anderson.
Falcon is the responsible entity for First Guardian and Anderson is a director of Falcon.
“ASIC sought the orders to help protect investor funds while an investigation is continuing,” the regulator said.
The Federal Court orders restrain Falcon and Anderson from:
- Removing their property (including the property of First Guardian) from Australia.
- Selling, charging, mortgaging, encumbering, or otherwise dealing with, disposing of, and/or diminishing the value of that property.
- Incurring new liabilities.
- Withdrawing, transferring, disposing of, or dealing with money held in bank accounts in which Falcon or Anderson have an interest.
ASIC said that the orders are subject to some limited exceptions, including allowing for the transfer of specific property of First Guardian under an existing sale agreement entered into by Falcon.
Specifically, this exception relates to units in the Chiodo Diversified Property Fund, which are subject to a units purchase agreement dated 31 March 2024 between Falcon and Asia Pacific Property Holdings LLC, “to the extent that those units need to be disposed of or transferred or otherwise dealt with in order to give effect to or for the performance by the first defendant of the units purchase agreement”.
According to an investor update earlier this month, Falcon was the trustee of the Chiodo Diversified Property Development Fund until June 2021, when Keystone Asset Management Ltd took over as trustee.
“Falcon as trustee of the Australian Development Fund held units in the Chiodo Diversified Property Development Fund until March 2024, when it divested its interest. Payment for that divested interest is held as a cash receivable,” Falcon told investors.
In June 2024, ASIC obtained orders from the Federal Court freezing the assets of the Shield Master Fund, whose responsible entity is Keystone Asset Management.
The court also made orders that Paul Chiodo, a former director of Keystone, surrender his passport and be restrained from leaving Australia.
In September, ASIC applied for Keystone Asset Management to be liquidated, with its creditors eventually resolving to have the firm wound up in December.
Falcon Capital also told investors that, while it has received queries about its involvement with Shield, “Falcon has never invested in the Shield Master Fund”.
A further court hearing is listed to take place on 14 March 2025.
