ASIC moves to wind up Capital Guard, alleging it pushed fake bonds
Tue 14 Jul 2026 at 7:51pm
In short:
The financial watchdog is seeking to shut down an investment company accused of taking $17 million from 80 victims, including by allegedly promoting fake bonds.
One couple from regional NSW put $250,000 into the scheme after meeting staff in person at a picturesque Sydney office.
What's next?
The matter is due in court on July 20, while ASIC's investigation "remains ongoing", as the company has shut down its website and is not returning calls from panicked investors.
The financial watchdog is trying to shut down a formerly licensed Australian company accused of promoting fake bond investments and engaging in "serious misconduct".
The Australian Securities and Investments Commission (ASIC) says its investigations to date indicate Capital Guard had raised more than $17 million from around 80 investors across Australia, alleging only a "small proportion" of those funds remained in the firm's accounts.
ASIC has now lodged a winding-up application in the New South Wales Supreme Court against Capital Guard AU.
The financial regulator said it had "serious concerns" about the company and its handling of investor funds, and wanted a liquidator appointed to investigate its affairs and preserve whatever assets remain.
"Investor funds appear to have been used in ways that are inconsistent with how Capital Guard told investors those funds would be invested," a statement from ASIC said.
ASIC has accused the company of engaging in "serious misconduct" including promoting a fake Macquarie Bank bond, providing false documents to its auditor and making misleading statements.
It also alleged there had been a "breakdown in the company's governance and management" and that it had failed to comply with regulatory and reporting obligations.
The move follows regulatory action ASIC took against Capital Guard last week to cancel its financial services licence.
Investors concerned for future of funds
Gail MacDonald, 69, from regional NSW, feared what this latest development meant for the $250,000 she and her husband invested last year.
"It's been a very, very stressful time for us because we're not actually rich," the Wollongong resident said.
"This was our, sort of, safeguard for our retirement that we didn't want to touch."
Ms MacDonald said she came across Capital Guard when she was looking for a passive investment as she and her husband headed into retirement.
Ms MacDonald said the company was registered on ASIC, had an Australian financial services licence, and said it had indemnity insurance.
But she wanted to meet in person and arranged a meeting at their offices at 1 Macquarie Place, in the heart of Sydney with sprawling views of the harbour, before deciding to part with her money.
"Because one of the things that I heard when you're looking at investing money is always make sure that they've got an office and that you actually sit down with the people and don't do anything online or by phone," she explained.
"They seemed to have quite a team around them, including admin, reception.
"We were pretty excited about going forward with the whole option."
She said they had received dividends up until this month, and received a gift basket with Capital Guard branded merchandise, further making her feel it was a legitimate endeavour.
Ms MacDonald has since made reports to Scamwatch, ASIC and the Australian Financial Complaints Authority.
Capital Guard claimed on its now-defunct website that it would act as "your investment shield" and that some of its bonds had returns of up to 9 per cent.
The company held a financial services licence since August 15, 2017, however, the previous financial services business was sold in 2024 to its current management, according to ASIC.
The ABC's email to Capital Guard bounced. Phone calls went unanswered and straight to a messaging bank that told customers to get in touch with ASIC with any questions.
The matter is due in court on July 20.
ASIC said its investigations into Capital Guard, and people and other businesses related to it, were "ongoing".