Capital Guard Liquidated: $17.4m Raised, Most Funds Gone

The Supreme Court of New South Wales has ordered the winding up of Capital Guard AU Pty Ltd after ASIC uncovered a fake Macquarie Bank bond, false documents given to an auditor, and roughly $17.4 million in mostly missing investor funds.

The court appointed Robert Kirman and Jacinta Nielsen of McGrathNicol as joint liquidators on 27 July 2026, handing them control to investigate the firm and recover assets. The ruling came less than a month after ASIC cancelled Capital Guard's financial services licence.

What ASIC Found

ASIC cancelled Capital Guard's Australian financial services (AFS) licence on 29 June 2026 after finding the firm created a fake bond prospectus for a Macquarie Bank bond and used it to solicit investor funds. The firm obtained at least $100,000 from investors for the non-existent bond.

The regulator also found Capital Guard provided false documents to its auditor, made misleading statements on its website, and altered scam warnings about the company issued by third parties. ASIC described the conduct as dishonest. Capital Guard held AFS licence number 498434 since August 2017, but the business was sold to its current management in 2024.

Missing Investor Funds

ASIC's investigation indicates Capital Guard raised approximately $17.4 million from around 80 investors. Only a small proportion remains in known bank accounts and payment platforms. The regulator raised concerns that investor funds were used in ways inconsistent with what Capital Guard told investors, and that bond investments promoted by the firm may not have existed as represented.

ASIC also identified a breakdown in governance and management, failures in regulatory and reporting obligations, and inadequate resources and compliance arrangements.

Marketing and Regulatory Response

Capital Guard promoted itself on its website, in online advertisements, on social media and in news articles as a regulated provider specialising in corporate bonds. On 3 July 2026, ASIC added the firm to its Moneysmart Investor Alert List, and the company's website was taken down.

ASIC filed its winding-up application on 14 July 2026. A directions hearing followed on 20 July, and the final hearing before Justice Nixon on 27 July resulted in the court granting the orders sought. ASIC Chair Sarah Court said the orders protect investors and the liquidators will determine what happened to investor money and maximise recovery prospects.

What Happens Next

The liquidators will investigate Capital Guard's affairs and seek to recover assets. Affected investors can contact them at capitalguard@mcgrathnicol.com. The licence cancellation took effect from 29 June 2026 but continues until 29 June 2027 for limited protective purposes, including AFCA scheme membership and professional indemnity insurance. Capital Guard may apply to the Administrative Review Tribunal for a review. The case underscores the importance of independently verifying investment products, even with licensed firms.