Queensland call centre AGAT Business, currently under investigation by the corporate watchdog, has gone broke and been put into voluntary liquidation.

Customers had alleged AGAT sales representatives phoned them offering to check their current super arrangements for free before referring them to financial advisers.

Some of those financial advisers then recommended customers move their super to a troubled investment scheme called the Shield Master Fund.

AGAT’s collapse is one of a string of insolvencies that means some people who are worried about their investment in Shield have also had the call centre they dealt with close their doors and their financial advice firm shut.

This conduct of lead generators and financial advisers forms part of a long-running investigation by the corporate regulator, the Australian Securities & Investments Commission (ASIC).

At least 5,800 customers invested $480 million into Shield Master Fund mainly through superannuation platforms. They are now waiting to discover how much money they will be able to recover.

The trustees of the platforms were Macquarie and Equity Trustees.

ASIC said trustees performed the role of gatekeepers of the platform’s options, even though they didn’t direct the investments.

In July, the ABC spoke to three women who alleged they were pressured into switching super funds by AGAT Business — which dubbed itself the ‘superannuation detectives’ after being offered a free review.

Two claimed they were called out of the blue.

Company denies wrongdoing

At the time, the company declined an interview on the grounds it “Respects the privacy and rights of its clients and business partners,”

Before its collapse, AGAT published a post on its website which denied claims that employees were engaged in “cold calling”, saying it was “not engaged in any misconduct whatsoever”.

The company said it had thousands of satisfied customers.

ASIC Deputy Chair Sarah Court has previously said it was looking into what clients of the ‘super detectives’ were told including whether it was “unlicensed conduct” which amounted to advice or possible breaches of consumer law.

However, she said the company’s business model did not appear to be in breach of any law.

“I think it’s fair to say this business model exploits gaps in the law,” Ms Court said.

“It is against the law to ring up and sell a financial product, it is not against the law to ring up and offer a so-called service.”

AGAT Business was placed into voluntary liquidation in late November with Nick Combis appointed liquidator.

He is also winding up another call centre company called Just Sort My Super.

Mr Combis confirmed the companies would never trade again.

“I do not propose to elaborate on the nature of my investigations however I am aware of prior issues and investigations by ASIC,” he said in a statement.

In response to questions from the ABC, the co-founder of AGAT, Dan Allen stated:

“You killed our business, hurt customers, hurt ordinary working families, and helped a trillion dollar (superannuation) industry.

“Our belief…is that not every Aussie should be put into a multi- billion dollar fund.”

He reiterated the company’s denials that its employees cold called people.

“We have legal records going back years where we have shifted our operations to meet the regularly updated guidance from ASIC.”

When asked whether a third party company had cold-called people before transferring them to AGAT Business, the company did not respond.

Former director and co-founder Shay Brown issued a separate statement which said the company’s role was limited to connecting people to licensed financial planners.

“We had nothing to do with the recommendations of the Australian licensed financial planners who, to our understanding, were fully compliant with all legal standards,” it stated.

“We have no knowledge of the issues, other than what ASIC and news outlets, have released about this financial product (Shield Master Fund.)”

Keystone Asset Management, which was responsible for the Shield Master Fund, has also gone into liquidation.

Deloitte was recently appointed as liquidator and has estimated customers may not be able to secure all of their funds.

ASIC’s investigation is examining the role played by Keystone, superannuation trustees, the financial advisers who recommended Shield and the lead generator companies.

Four financial advice firms have also recently entered voluntary liquidation.

Amongst them is Rebellis Financial Services which had been advising clients to invest in Shield.

Rebellis told the ABC in August it had recommended Shield as part of a diversified portfolio matched to an individual’s “risk profile assessment”, and that independent research agencies had assessed the fund.

The company is being liquidated by Hamish MacKinnon and Nicholas Giasoumi who have also been appointed to wind up 5 Point Australia, STC Financial and AS Financial.

All four companies were operating as authorised representatives of the Financial Services Group Australia (FSGA).

FSGA’s founder Ferras Merhi said clients affected by the collapse of the companies would be looked after by his business.

“I’ve decided to take those clients directly under the AFSL (Australian Financial Services License).

“They’re still going to be receiving their service.”

Mr Merhi said FSGA and Venture Egg were subject to the ongoing investigation by ASIC.

He said that has had a substantial impact on business and staff had lost their jobs.

But he pointed out the regulator hadn’t taken action.

“I’m yet to have any enforcement proceedings issued against me or any stop orders to stop what I’m doing currently.”

“We’ve got 300 clients that they can contact you tomorrow and tell you how happy they are with us.

“I am fighting my butt off to make sure every single client is represented fairly, efficiently, honestly.”

Xavier O’Halloran, CEO of consumer group Super Consumers Australia said people who were concerned they may have received inappropriate advice could make a complaint.

“We’d really be encouraging anyone who thinks they may have received inappropriate advice to contact the Australian Financial Complaints Authority and make a complaint as soon as they can.”