Chiodo in ASIC's crosshairs again

ASIC is taking further action on Paul Chiodo, this time for spruiking another property investment that raised $1.54 million from five SMSF investors.

ASIC is seeking orders from the Federal Court to restrain Royce Capital Investments Royce (Australia) Real Estate (RARE), Louie Kortesis and Paul Chiodo from advertising.

This is to cease them from promoting or accepting money in Australia for Royce Global Investments LP (registered in the Cayman Islands), Royce Global Real Estate LP (registered in the Cayman Islands) and Royce Private Investments Fund LP (registered in Delaware).

The five investors signed a subscription agreement offering to acquire interests in the Royce Private Fund.

Brochures provided to investors indicated funds would be used for a hotel development in Fiji located in Namuka Bay.

Chiodo is the former director of Keystone Asset Management, which is in liquidation. He was also the director and co-founder of CF Capital, the investment manager of the Shield master Fund.

Keystone and Chiodo have both been named as defendants in the lawsuit.

Kortesis was a director of Keystone between 29 December 2023 and 14 November 2024.

ASIC said its proposed orders would also restrain Royce Capital, RARE, Kortesis and Chiodo from advertising, promoting or accepting money for financial products generally in Australia.

ASIC alleges that in August 2025, Royce Capital raised $1.54 million from SMSF investors, purportedly for investment in one or more of the above offshore funds.

Furthermore, it alleges Royce Capital provided financial services without holding an AFSL,

Kortesis and Chiodo were involved in Royce Capital's alleged unlicensed conduct, and that

Royce Capital and/or RARE made misleading or deceptive representations in brochures provided to some investors.

This includes promising investors they would receive a guaranteed or fixed return of 13% p.a.

ASIC is also currently suing Chiodo, and other former Keystone directors - Ilya Frolov and Mark Yorston - for allegedly failing their duties to safeguard superannuation members from the collapse of the Shield Master Fund.

ASIC recently launched new action on Auditeo Australia and two auditors, alleging serious audit failures linked to First Guardian.

ASIC alleges that unqualified audit reports on First Guardian and its compliance plan for the 2020 to 2024 financial years, issued by Auditeo and signed by either lead auditor Ajm Didarul Islam Khan or, for certain compliance plan audits, Brian Robert Taylor, were false or misleading.

Khan is the sole director and shareholder of Auditeo and was the lead auditor for the First Guardian financial audits.

Taylor was engaged by Auditeo as the lead auditor in relation to most of the First Guardian compliance plan audits.