The seriousness of their alleged offences and the scale of potential losses were among the key reasons that Federal Court Justice Mark Moshinsky ruled in favour of travel bans against Ferras Merhi and Osama Saad on Thursday.
Merhi controls advice firm Venture Egg Financial Services and licensee Financial Services Group Australia (FSGA), while Saad was a director of Aus Super Compare until September 2024 and the sole director of Atlas Marketing until November 2024.
FSGA, Aus Super Compare and Atlas have all entered liquidation, while Venture Egg and Merhi are no longer authorised to provide financial advice after InterPrac cut ties at the end of May.
Both Merhi and Saad are connected to the Shield Master Fund and First Guardian Master Fund collapses, with Venture Egg and FSGA advising 6,276 clients to invest in Shield and First Guardian, according to the court, and Saad’s marketing firms providing lead generation services for the funds.
In his judgement on Thursday, Justice Moshinsky cited the “seriousness of the allegations” against Merhi, as well as the scale of potential claims against him, as cause to consider there is “at least some risk he may leave and not return to Australia”.
Despite making similar findings against Saad, Justice Moshinsky acknowledged that there is “no clear evidence” either man is a flight risk; however, he still ruled in favour of ASIC and imposed travel bans.
Under the orders, Merhi and Saad are restrained from leaving or attempting to leave Australia until 12 December 2025, and must surrender “all passports, visas and other documents permitting international travel”.
In February, following applications made by ASIC, the Federal Court made interim orders freezing certain assets of Merhi and Saad.
“ASIC is investigating Mr Merhi and various entities associated with him, in connection with its investigations concerning certain managed investment schemes including the Shield Master Fund. These investigations are ongoing,” ASIC said at the time, adding in a separate announcement that the same is true of Saad.
The interim orders relating to both Merhi and Saad were extended on 26 May until 12 December, the same date the travel restraint would cease.
In June, ASIC cancelled FSGA’s Australian Financial Services Licence and permanently banned responsible manager Graham Holmes, with the regulator finding Holmes was merely the RM “on paper”.
Both Merhi and Saad are due back in Federal Court on 19 November for case management hearings.
