The Federal Court has appointed Jason Tracy and Lucica Palaghia of Deloitte to have full control of the bank accounts of the Shield Master Fund (Shield).
The 26 June 2024 Court orders prevent Keystone Asset Management Ltd (Keystone), the responsible entity for Shield, from selling, transferring, or dealing with Shield's assets, other than to make certain payments that must first be approved by Deloitte.
ASIC took this action to protect investor funds while its investigation continues (24-129 MR) into concerns about the management and operation of Shield and the associated risks to investors. Some of these concerns include:
- Keystone has failed to lodge Keystone's and Shield's audited FY2023 financial statements,
- a large proportion of the funds held by Shield have been directed to a fund which made loans to various companies associated with Mr Paul Chiodo, a former director of Keystone to fund property developments, and
- ensuring there is independent oversight with respect to any payments going forward.
As part of the court appointment, Mr Tracy and Ms Palaghia:
- will have to assess whether payments are in the best interests of Shield investors, and
- prepare a report on the financial position of Shield by 23 July 2024.
The matter will be back before the Court in August at a date yet to be fixed.
Mr Chiodo also provided an undertaking to the Court to give ASIC written notice 14 days prior to any international travel and to take all reasonable steps to comply with any notices issued by ASIC in the event he is travelling overseas. Travel restraint orders previously made by the Court on 18 June 2024 have been vacated.
