ASIC accuses InterPrac of industrial‑scale misconduct for approving advisers who steered about 6,843 clients into two failed funds, Shield and First Guardian (Master Funds), risking roughly $677 million in investments.

InterPrac allegedly failed to ensure adviser compliance with the best interests duty, had weak risk controls, relied on external research for product approvals, and did not curb investments into Shield and First Guardian after red flags emerged.

Mehri and Reilly, two InterPrac authorised representatives, allegedly steered thousands of retail clients into the funds and received payments tied to entities linked to First Guardian and Shield.

ASIC indicated more actions are forthcoming, though no precise timelines were provided.

SQM Research’s owner Louis Christopher says they are assessing the claim.

MWL Financial Services is under consideration for proceedings, with ASIC seeking leave to launch action over similar alleged failures.

ASIC is pursuing legal action against MWL and the research house SQM for roles in defrauding customers, alongside separate action against Mehri for unconscionable conduct and misalignment with clients’ best interests.

The InterPrac case will return to Federal Court on a later date.

ASIC has filed civil penalty proceedings in Federal Court against InterPrac and obtained interim orders restraining involved individuals from operating in financial services.

ASIC seeks declarations, civil penalties, and orders to restrain the parties from operating in financial services, with potential disqualification of a key individual and further actions to be determined by the court.

InterPrac said it will vigorously defend the allegations.

ASIC notes more than 40 investigators are working on the case, underscoring the breadth of the alleged misconduct.