Overview
- ASIC filed Federal Court proceedings on Friday, June 26, 2026, naming Paul Chiodo and Keystone directors Ilya Frolov and Mark Yorston and seeking civil penalties and banning orders.
- The regulator alleges about $305 million was routed to companies linked to Chiodo to fund luxury resort projects, with separate transfers including $30 million for a Fiji project that saw no construction.
- ASIC says roughly $64 million went to lead generators who recruited investors and about $155 million was paid to entrepreneur Robert Filippini despite no building licences or contracts to justify the payments.
- The collapse of the Shield Master Fund wiped out about $530 million of superannuation held by nearly 6,000 members and Macquarie has already agreed to pay $350 million in compensation to affected investors.
- The case highlights weaknesses in fund oversight and the role of lead generators in steering retirees into risky products and could lead to bans on the named directors, more compensation claims, and tighter scrutiny of how superannuation choices are distributed.