The Fin Inside the biggest investment scandal in 15 years
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Oct 8, 2025 Andrew Hobbs, a wealth reporter who investigates superannuation scandals, joins financial columnist Tony Boyd to delve into a $1.2 billion investment crisis. They discuss how online recruitment funneled retirees into risky funds, exploring the rapid growth and subsequent collapse of the Shieldmaster fund. Highlighting emotional investor stories and the failures of gatekeepers and trustees, they assess the regulatory landscape and recommend urgent reforms to protect future investors from similar pitfalls.
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How Investors Were Lured In
- Many investors found the products via Google comparison sites and aggressive lead generators who phoned them after they entered details.
- Financial advisors then fast-tracked transfers and new platform setups in hours, not weeks, trapping people into risky funds.
Where The Money Actually Went
- Investors' money went into illiquid, risky property projects and overseas loans rather than diversified portfolios.
- Examples include $100m into an undeveloped Port Douglas hotel and $200m loaned to a Singapore company that appears unrecoverable.
Human Cost Of The Failure
- Investors described devastating personal consequences beyond lost savings, including mental-health tolls and family tragedies.
- One investor reported savings written down from $530,000 to $1,800 overnight, illustrating immediate harm.