Paul Chiodo sues Shield-linked City Built, director for $200m

Former Keystone Asset Management director Paul Chiodo is suing City Built, its director Roberto Filippini, and members of his family, who are tied to the collapse of the Shield Master Fund, for $200 million, alleging they engaged in a wide-ranging scheme that led to substantial property construction losses and project failures.

The Statement of Claim filed with the Supreme Court of Victoria lists nine defendants against whom Chiodo is taking action against: City Built, which carried out construction, construction-management, project-management and building-services businesses, and Force 1 Constructions, which provided site-security services.

Chiodo is also suing Roberto Filippini and members of the Filippini family, including his wife Dimitra Filippini, and a related company FPC VIC. Roberto Filippini was a director, officer, controller or authorised representative of one or more of the City Built and Force 1.

Chiodo alleges that between December 2019 and October 2024, his company Chiodo Corporation paid or caused to be paid at least $184.1 million to, or for the benefit of, the companies and Roberto Filippini.

Instead of using investor funds for construction, Chiodo alleges the family used substantial amounts to "enrich" themselves, including by purchasing luxury vehicles such as a Lamborghinis and Maseratis.

The "defendants were enriched by receiving money, payment of purchase prices or deposits, payment of mortgage liabilities, properties, vehicles, trust assets, investment assets or other benefits," he alleged.

Other allegations include altered invoices and timesheets, duplicate reimbursement requests, claims for work and materials not supplied, and payments for liabilities that either did not exist or were overstated.

This is in addition to alleged failures to verify claims, pay creditors, maintain proper records, and account for project funds, as well as the diversion of money intended for creditors to unrelated personal or family purposes.

Some of the projects include 71-85 Port Douglas Road, Port Douglas, Queensland, 33-35 Nicholson Street, Bentleigh, Victoria and two luxury penthouses at 29 Queens Road in Melbourne.

Chiodo is also the director and co-founder of CF Capital, the investment manager of Shield.

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

Furthermore, Chiodo believes the defendants "concealed the causes of action by presenting altered documents as genuine, retaining the genuine documents, representing that creditors had been paid, giving false Project updates, moving funds between related accounts, using family members, trusts and companies to hold assets, failing to provide accurate accounts and failing to disclose the true application of advances."

He said he did not discover discrepancies and the alleged fraud until he began obtaining documents directly from subcontractors and suppliers from approximately March 2025.

Chiodo's claim exceeds $200 million. Between 27 December 2019 and 24 October 2024, he alleges $184,113,049.45 was paid for benefit of the related companies and the family.

Chiodo said he does not assert the entire $184,113,049.45 constituted fraudulently obtained money without allowance for genuine work.