Slater and Gordon Lawyers are currently investigating a potential class action on behalf of investors in the First Guardian Master Fund and Shield Master Fund, amid allegations that these funds operated a Ponzi scheme affecting thousands of Australians' superannuation savings.

The investigation indicates that over 12,000 Australians could be impacted, with potential losses exceeding $1 billion due to the collapse of these investment funds.

Liquidators from FTI Consulting have reported a significant shortfall of recoverable assets, estimating that claims for losses could reach as high as $446 million.

Principal lawyer Andy Wei has accused the funds of misleading investors by promoting unreliable investments and inflating the value of illiquid assets.

These illiquid assets include property developments and unlisted securities, which are difficult to convert to cash without incurring substantial losses.

The investigation further suggests that the funds may have co-mingled investor money for redemptions and management fees, a practice commonly associated with Ponzi schemes.

As part of the ongoing investigations, the Federal Court has imposed travel restrictions on the directors of Falcon Capital, the entity responsible for the alleged scheme.

In response to the situation, the Australian Securities and Investments Commission (ASIC) has initiated its own investigation into the management investment scheme and is taking steps to preserve the remaining assets for investors.