Federal Court lifts Merhi's travel ban

Former financial adviser Ferras Merhi is now free to travel as the Federal Court lifted travel restraint orders imposed one year ago.

Justice Moshinski lifted the Merhi's travel ban on July 9.

The order stated the travel restraint handed down one year ago be vacated and that Merhi would "be permitted to collect his passport from the Victoria District Registry."

On June 19, Merhi applied to the Federal Court to vacate travel restraint orders against him. ASIC said it opposed Merhi's application.

The court slapped the travel ban order on Merhi in July 2025 amid ASIC expanding its investigation into the former financial adviser, alleging he engaged in unconscionable conduct, failed to act in clients' best interests, gave conflicted advice, and issued defective statements of advice while receiving millions in fees.

Merhi allegedly used marketing companies to direct clients to his advice businesses, Venture Egg and Financial Services Group Australia. Between 2020 and 2024, clients were advised to invest some $296 million into the First Guardian Master Fund and $230 million into the Shield Master Fund.

ASIC calculates Merhi's businesses allegedly received nearly $18 million in upfront advice fees and over $19 million in marketing payments from entities associated with First Guardian.

A few weeks later, the Federal Court banned Merhi from working in financial services after ASIC successfully obtained interim restraining orders. Merhi's assets have also been frozen since February 2025.

ASIC recently took action on former Keystone Asset Management directors and compliance committee members who put Australians' superannuation at risk by investing scheme funds in related entities and third parties without proper safeguards.

Paul Chiodo, Ilya Frolov and Mark Yorston allegedly failed their duties to safeguard superannuation members from the collapse of Shield.

Some 5800 investors with $530 million in retirement savings were invested in Shield. Keystone, which is now in liquidation, was the responsible entity for Shield.

ASIC alleges about $305 million of this total was transferred as "loans to entities" linked to Chiodo and Frolov, who were officers and directors of Keystone. The regulator is also concerned such transfers involved the giving of financial benefits to a related party.