ASIC wins court order to wind up Capital Guard

ASIC has successfully sought Supreme Court orders to wind up Capital Guard and appoint independent liquidators to take control of the company.

Capital Guard promoted itself as a regulated financial services provider that specialised in acquiring and holding corporate bonds on behalf of clients.

ASIC cancelled Capital Guard's Australian financial services licence on June 29 after finding it had engaged in serious misconduct, including promoting a fake Macquarie Bank bond, providing false documents to its auditor and making misleading statements on its website.

ASIC's investigation revealed Capital Guard raised approximately $17.4 million from around 80 investors and only a small proportion of those funds remained in known company bank accounts and payment platforms

ASIC chair Sarah Court said: "These orders are an important step in protecting investors and ensuring an independent investigation into Capital Guard's affairs."

"ASIC's concerns about Capital Guard include the handling of investor funds, the apparent promotion of bond investments that may not have existed as represented, and serious failures in governance and compliance."

ASIC added the Supreme Court of NSW made the orders to wind up Capital Guard on just and equitable grounds and has appointed Robert Kirman and Jacinta Nielsen of McGrathNicol as joint and several liquidators.

The liquidators will take control of the company, investigate its affairs and seek to preserve and recover assets for the benefit of creditors and investors.

"The appointment of independent liquidators will help determine what has happened to investor money, preserve available assets and maximise prospects for recovery where possible," Court said.