First Guardian victims advance in case against InterPrac

Two victims of the First Guardian Master Fund linked to InterPrac Financial Planning, who collectively lost $465,000, have won a small victory in the Federal Court.

Justice Beach on August 13 ordered InterPrac to pay the sums, which were calculated based on determinations set by the Australian Financial Complaints Authority (AFCA), in a holding account with the Federal Court.

Melinda Kee lost $380,000 of her retirement savings when she invested it in First Guardian, prompted by the now-defunct lead generator Aus Super Compare.

For Kee's portion, Justice Beach's order compelled InterPrac to pay $368,903.11 and legal costs of $3500 to the court's bank account.

Danielle Adams, who was also invested in First Guardian, will have the amount of $91,178.10 in addition to $2000 in legal fees incurred paid into the court's account.

In May, InterPrac targeted Kee when she became a defendant in the lawsuit against AFCA.

The fate of the money will not be known until the outcome of this lawsuit, in which InterPrac argued the complaints body did not treat it fairly amid the fallout of the failed managed investment scheme.

Kee told Financial Standard: "It's pleasing to know that the money will be in a secure account held with the Federal Court until trial, which I have just been advised this morning that the date has been  pushed out from October 19 to February 27."

"We know that the money is safe, provided that AFCA wins the court case. The money will then go to our superannuation accounts," she said.

Kee went on to say that upon a successful court outcome in February 2027 or a successful determination in the case between InterPrac and AFCA, her advocacy for fellow victims will still go on.

Kee spearheads the SOS Save Our Super website, an advocacy group that is fighting for justice for victims. She is also part of the First Guardian and Falcon Superannuation Discussion group on Facebook that currently has about 2000 members, most of whom are in the process of recovering or have recovered their money.

"It's important that people stay and keep advocating with us. I don't want people to think that I'm going anywhere once my case settles," she said.

Recourse for many victims, however, has been long and tiresome while others who were part of the Netwealth and Macquarie platforms have been made whole.

"Every additional month represents another month without retirement savings. Another month without the investment earnings those savings should have been generating. Another month of uncertainty for people approaching or already in retirement," Kee added.

"And another month of emotional and financial pressure on families who have already endured far too much."

ASIC recently withdrew legal proceedings against Sequoia after it entered an undertaking not to put the Cross Deed of Guarantee at risk tied to the sale of InterPrac Financial Planning.

The group remains coy about whether the deal with Conquest Investment Management going ahead.

A spokesperson for Sequoia confirmed options for InterPrac are still being considered but declined to comment if the development with ASIC meant discussions to offload InterPrac to Conquest were back on.

On May 1, following ASIC's concerns over the divestment of InterPrac, Sequoia said developments subsequent to signing the share sale agreement "had resulted in circumstances where completion cannot occur on terms consistent with those originally contemplated by the parties."

Garry Crole exited the beleaguered group in July as chief executive.

Editor's note: A previous version of this article incorrectly stated that the monies have been paid to the victims.