Venture Egg and the Fallout from the Collapsed Scheme

1. The Rise and Fall of Venture Egg’s Ties to Hasan and Alshakshir

Venture Egg, a financial planning firm with clients across the country, found itself at the center of controversy after its association with two individuals came under scrutiny. The firm parted ways with a former general manager, Hasan, after discovering her criminal record. Hasan’s LinkedIn profile indicates she left the company in October 2023. Her departure came after her brother, Alshakshir, had reportedly introduced her to the firm. Merhi, the founder of Venture Egg, denied any close business arrangement with Alshakshir, describing their relationship as purely professional and “arm’s-length.” Both Hasan and Alshakshir have declined to respond to inquiries regarding their involvement with the firm.

Merhi’s association with Alshakshir has raised eyebrows, particularly given the collapse of a superannuation scheme in which many of Venture Egg’s clients had significant investments. The collapse has left numerous clients facing financial uncertainty, and questions have been raised about the firm’s vetting process for employees and associates. The relationship between Merhi and Alshakshir, as well as the circumstances surrounding Hasan’s departure, remain key points of interest in the ongoing investigation.

2. Bill El-Helou: A Troubled Past and Ties to Chiodo

Another figure with a problematic history linked to Venture Egg is former financial planner Bill El-Helou. El-Helou was banned from the financial services industry for five years in 2017 due to his failure to act in the best interests of clients and his lack of competence in providing financial services. Despite this, El-Helou had previously worked with Merhi at Venture Egg, and the two men have maintained a close personal relationship over the years.

El-Helou’s ties to Merhi extend beyond their professional relationship; the two have been friends for years, often engaging in social activities such as attending Carlton Football Club games and visiting shooting ranges. El-Helou has also maintained ties to Chiodo, a figure at the center of the ongoing ASIC investigation into the Shield Master Fund. In 2023, El-Helou established a company, 417 Bellmere Road Pty Ltd, which listed him as the sole director and Chiodo Corporation as a shareholder, alongside domestic partners of Merhi and El-Helou.

The company struck a deal to purchase a property in Bellmere, a rural locality near Caboolture, and placed a caveat on the title. Despite no planning applications being filed or the sale being completed, a development loan related to the property was included in the Chiodo fund, which had received significant sums of investor money. Merhi has since denied any wrongdoing in the Bellmere transaction, stating that he introduced El-Helou to Chiodo as part of normal business dealings and that Chiodo personally funded the project.

3. ASIC’s Investigation and the Freezing of Assets

The corporate watchdog, ASIC, has launched an investigation into the improper direction of investor money, including funds from Venture Egg clients, into another fund operated by Chiodo. This fund, which held investments in Chiodo’s property developments, has come under scrutiny after it was revealed that many of the developments lacked approved plans or were listed in the fund before the acquisition of the sites was completed.

In February, the Federal Court froze the assets of Merhi and another individual, Osama “Sam” Saad, as part of the ASIC investigation. The court’s decision to freeze their assets underscores the seriousness of the allegations and the potential scale of the financial mismanagement. Merhi has vehemently denied any wrongdoing, rejecting ASIC’s claims that Venture Egg improperly managed its planners and clients and funneled investors into the Shield Master Fund for commission.

Merhi has also denied receiving any commissions like those paid to Saad or Alshakshir by Chiodo’s businesses. He contends that the ledgers filed by ASIC in the Chiodo proceeding, which suggest such payments were made, are inaccurate. Merhi has emphasized his commitment to cooperating fully with ASIC’s investigation and has expressed his willingness to assist authorities in any way possible.

4. El-Helou’s Involvement and Response to Allegations

El-Helou has also come under scrutiny for his involvement in the Shield Master Fund and the Bellmere property deal. While he has not responded directly to questions about his role in the scheme, he has acknowledged the seriousness of the allegations and expressed his willingness to cooperate with authorities. El-Helou has stated that his thoughts are with the individuals and families who may have been adversely affected by the situation.

Merhi has sought to distance himself from El-Helou’s past misconduct, claiming he was unaware of El-Helou’s ban from the financial services industry when they initially started working together. He has acknowledged that El-Helou was a business partner from the inception of Venture Egg in 2015 but maintains that El-Helou left the business in 2017. The exact nature of El-Helou’s involvement in the scheme remains unclear, but his association with both Merhi and Chiodo has raised significant questions about the management of investor funds.

5. Chiodo’s Defense and the Broader Implications

Paul Chiodo, the figure at the heart of the Shield Master Fund, has denied any mismanagement of the fund and has maintained that he was unfairly targeted by ASIC. Chiodo has defended his actions, stating that El-Helou was engaged solely for the project management of a subdivision and that he was unaware of El-Helou’s prior issues with ASIC. He has also defended the payments made to Alshakshir, Saad, Merhi, and Venture Egg, describing them as standard industry practice and emphasizing that they were based on a fee-for-service arrangement rather than commissions.

Regarding the Bellmere deal, Chiodo has argued that the development had sufficient potential to justify securing a loan against the project. He has emphasized that his firm regularly receives development opportunities from various groups and individuals, and the Bellmere project was one such opportunity. Chiodo’s defense has done little to address the concerns of investors who have seen their funds tied up in the troubled scheme.

6. The Human Cost and Ongoing Fallout

The collapse of the superannuation scheme and the mismanagement of investor funds have had far-reaching consequences, particularly for the clients of Venture Egg who had significant portions of their retirement savings tied up in the collapsed scheme. The fallout has left many individuals and families facing financial uncertainty and has raised questions about the vetting processes of financial planners and the oversight of investment funds.

Alshakshir’s businesses have also felt the impact of the investigation, with his three Tickled Pink cafes in Melbourne recently shuttered and his Bali venue appearing to be closed. Several websites linked to his firm, which were connected to switching super funds or finding lost super, were also shut down following inquiries by the masthead in December. The closure of these businesses has added another layer of complexity to the situation, as Alshakshir’s involvement in the scheme continues to be scrutinized.

As the investigation continues, the full extent of the financial damage remains to be seen. However, one thing is clear: the fallout from the collapsed scheme and the mismanagement of investor funds has had a profound impact on those affected, and the road to recovery will likely be long and arduous.