Latest news with #financialcollapse
Yahoo
22-07-2025
- Business
- Yahoo
‘Rich Dad Poor Dad' author tells Americans to stop saving dollars
'Rich Dad Poor Dad' author tells Americans to stop saving dollars originally appeared on TheStreet. Robert Kiyosaki, the author of the best-selling personal finance book titled "Rich Dad Poor Dad," has claimed that the Federal Reserve's addiction to printing fake money will trigger "the biggest crash in history." Predicting that the U.S. is on the verge of a financial collapse, Kiyosaki has advised investors to "protect their wealth" by saving in Bitcoin, gold, and silver. In an X post on July 21, Kiyosaki blamed the present-day turmoil as a symptom of a rigged financial system built on denial and debt. He claimed that the Fed has repeatedly printed fake cash notes to get over financial calamities, including the 1987 market crash, the 1998 LTCM collapse, and even after the COVID-19 pandemic. "The Biggest Crash in history is coming….soon. Take care," the author alarmingly warned. The financial analyst criticized the U.S. financial system for bailing out the country with freshly printed dollars while eroding the value of which is presently trading at $117,350, makes for an investment as good as gold, Kiyosaki has clearly stated. On multiple previous instances, the author has referred to BTC as the "people's money." He strongly believes that the oldest and most expensive crypto asset can help individuals preserve their wealth outside the traditional financial system. Kiyosaki's pro-BTC predictions come against the backdrop of mounting economic instability on the global level. Earlier this month, when BTC hit the $120,000 price mark, Kiyosaki predicted that the asset could soon hit the million-dollar mark, advocating investors to acquire BTC. Owing to the surprising progress on crypto regulation bills in the U.S., BTC registered a historic price rally to create its new all-time high of over $123,000 and triggered waves of optimism across the industry. Disclaimer: The content above is intended for informational purposes only and should not be taken as financial advice. Do your own research before investing. 'Rich Dad Poor Dad' author tells Americans to stop saving dollars first appeared on TheStreet on Jul 21, 2025 This story was originally reported by TheStreet on Jul 21, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
10-07-2025
- Business
- Daily Mail
Aussies warned they may never see their money again after a major super fund collapses
Nearly $450million is feared lost from an Australian superannuation fund after its directors went on a lavish spending spree - including purchasing a luxury Lamborghini - before the fund collapsed. Now the creditor's report has revealed where they believe the cash has gone, amid new fears savers may never see their cash and plunge their retirement plans into chaos. The First Guardian Master Fund was placed into liquidation in March after the Australian Securities and Investments Commission obtained a Federal Court order to freeze its assets. FTI Consulting managing partners Ross Blakeley and Paul Harlond, who were appointed as liquidators in April, conceded creditors may struggle to get their money back. 'In the absence of considerable recoveries from alternative potential claims in the liquidation, insufficient funds will exist to meet all claims of creditors,' they said. The liquidators have now revealed that $446million could conservatively be owed to retirement savers, after their superannuation invested in dubious ventures. 'The liquidators have preliminarily estimated that claims by unitholders on a cash invested basis that have not been redeemed approximate $446million,' they said. 'Significant monies have been invested (or sent) offshore in foreign jurisdictions. 'Much has been invested in technology ventures, none of which appear to have yet been commercialised and are thus not generating an income.' David Anderson 46, a director of the super fund and parent company Falcon Capital Limited, is accused of siphoning millions of dollars into his personal ANZ bank account. 'There is evidence that one director, Mr Anderson, or entities or individuals associated with Mr Anderson have also been parties to certain transactions and/or the receipt of considerable monies from the company and/or funds,' the report said. 'These transactions require further investigation and explanation by Mr Anderson.' Before the fund collapsed, he had also bought a $9million Yarra River mansion in the upmarket Melbourne suburb of Hawthorn in 2020. Fellow director Simon Selimaj, 63, had a $548,000 Lamborghini Urus registered in his name. Like Mr Anderson, the Federal Court has banned him from leaving or trying to leave Australia until February 2026. 'The vehicle was purchased in January 2023 by the company for $548,000 including on-road costs and was funded via a bank account controlled by the company,' the creditors report said. 'On appointment the vehicle was in the possession of Mr Selimaj.' The Lamborghini, which the liquidators have since seized, is estimated to now be worth $350,000 to $400,000, with Slattery Auctions taking possession of it. The directors had also failed to disclose this Italian sports SUV in the report on company activities and property. First Guardian paid more than $40million in marketing fees to Cornerstone Strategic Management - associated with Venture Egg Financial Services, along with the now liquidated Atlas Marketing and Indigo Group, between August 2021 and February 2024. 'It appears these monies were ultimately sourced from the fund,' the creditors' report said. 'There are concerns that the payment of fees purportedly for marketing services may have given rise to a conflict of interest, breach of duties, and has depleted investor funds. 'Further, there are concerns that the payment of marketing services fees was not disclosed in the financial services guide or product disclosure statements.' Australians had invested with First Guardian after being contacted by Venture Egg Financial Services, whose director Ferras Merhi was a VFL ruckman. The Federal Court froze Mr Merhi's assets in February following an ASIC application. First Guardian's directors also potentially inflated the value of its assets. 'Further, the liquidators consider the value of the assets may have been overstated in the accounts,' the report said. 'The overall recoverable value of the investments is likely to be considerably less than their combined book value and the view expressed by the directors.' The $446millon owed to creditors is regarded as a conservative amount as 'investments and loans made' potentially 'increase creditor claims'. Mr Anderson's defence lawyer Dan Mackay, a director of Mackay Chapman, previously said 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' Mr Mackay said.
CTV News
09-07-2025
- Business
- CTV News
Facing 300% tax hike, Northern Ont. community to dissolve Aug. 1
Fauquier-Strickland has accumulated more than $2.5 million in operating deficits in the last decade, with all reserve funds depleted. Heavily in debt at looking at a 300 per cent tax increase, the Township of Fauquier-Strickland has instead voted to end all municipal operations and layoff all staff effective Aug. 1. The community, which is northwest of Timmins and has just more than 400 residents, has accumulated more than $2.5 million in operating deficits in the last decade, with all reserve funds depleted. In a letter to the Ministry of Municipal Affairs and Housing, Mayor Madeleine Tremblay said her community 'faces complete financial collapse within weeks.' If that happens, Tremblay said residents would be left 'without essential services and creating an emergency that will inevitably require far more costly provincial intervention.' The letter, addressed to Minister Robert Flack, said addressing the deficit would have meant a 300 per cent tax increase, 'an impossible burden for our residents to bear.' Couldn't get a bank loan The township applied for a $2 million bank loan and made deep budget cuts to allow it to reduce the property tax hike to 26 per cent. But the bank is requiring further information before approving the loan, Tremblay said, including data that won't be available until 2026. 'This creates an impossible bureaucratic trap entirely beyond our control,' she said. 'We cannot access the financing we desperately need because we cannot provide documentation that will not exist for another year, yet we are expected to continue operating essential services without any means of funding them without the implementation of an exorbitant and unprecedented tax increase.' Tremblay said they have been seeking help from the Ministry since 2021, without success. 'Our residents rely on road maintenance, snow plowing, water and wastewater systems, waste management and fire protection services.' — Mayor Madeleine Tremblay 'The only response received was that MMAH would not be able to provide assistance until our 2024 audited financial statements and FIR are submitted,' she said. 'This circular bureaucratic reasoning has left our council, administration, and community trapped in an impossible situation while time runs out.' The township employs three part-time and five full-time employees, making it the largest employer in the area, and the only one offering summer student employment. But this year, they couldn't apply for summer student grants because they didn't have the money to pay their share. And in mid-June, all part-time staff and one full-time administrative staff were laid off. More layoffs coming More layoffs are pending, Tremblay added. 'Our residents rely on road maintenance, snow plowing, water and wastewater systems, waste management and fire protection services,' she wrote. 'The discontinuation of these services will create serious public health and safety risks that will result in expensive emergency provincial intervention, far exceeding the cost of supporting us through this crisis now.' Tremblay is asking Flack to appoint a municipal supervisor to help them and provide emergency funding 'to prevent service collapse while long-term solutions are developed.' In response to a request for comment from CTV News on the situation in Fauquier-Strickland, the Ministry of Municipal Affairs and Housing sent us this statement: '(Infrastructure) Minister Kinga Surma recently met with several northeastern municipalities, including Fauquier-Strickland, to discuss local priorities.' 'Our government is continuing to explore the best way to support the township with municipal infrastructure -- including building on the $315,000 we have invested in the township through the Ontario Community Infrastructure Fund over the last three years.' After voting to dissolve as of Aug. 1, council in the community also considered selling its snowplow. It needs costly repairs that it can't afford, so the motion would put it up for sale for 'scrap value.'
Bloomberg
08-07-2025
- Business
- Bloomberg
Credit Fund's Collapse Leads to $1 Billion Lawsuit Against EY
Bridging Finance Inc. 's receiver is suing Ernst & Young LLP for C$1.4 billion ($1 billion), alleging the auditor failed to detect fraud and misstatements that contributed to the Toronto private lender's collapse. In a claim filed with Ontario's Superior Court last month, PricewaterhouseCoopers alleged that EY issued unqualified opinions on Bridging's books from 2014 to 2020 despite red flags, including inflated asset values and hidden defaults.
Daily Mail
03-07-2025
- Business
- Daily Mail
BREAKING NEWS Thousands of Aussies at risk of losing their superannuation as First Guardian Master Fund collapses
More than 5,000 Aussies who reinvested hundreds of millions of their superannuation into First Guardian Master Fund could struggle to get their nest eggs back after the company's collapse. Aussies like Juan Carlos Sanchez were convinced by financial advisory company Venture Egg to move their super savings from ANZ into a fund called AusPrac. After shifting all his super, Mr Sanchez was told that withdrawals from his fund had been frozen since May 2024. 'When I got that email (from AusPrac advising the superannuation money had been frozen), my stomach dropped — I just had this sick feeling,' he said. Mr Sanchez later discovered his super was not being reinvested to grow his retirement savings but was being sent into 'a cash hub' controlled by the directors of First Guardian Master Fund. Mr Sanchez was one of 6,000 Aussies who invested $590million with First Guardian before it collapsed this year. The Australian Securities and Investments Commission is investigating the company. Investors were told to put their super into a retail choice superannuation fund and then invest part or all of it into First Guardian. Falcon Capital Limited was responsible for the failed First Guardian fund. Its former managing director was David Anderson and ASIC is investigating him after alleging he poured millions of investors' retirement savings into his own failed property developments, craft breweries and to help celebrity chef Scott Pickett, of which he was a shareholder. The Federal Court has appointed liquidators to Falcon Capital and Mr Anderson's assets have been frozen and passports seized as investigators comb through financial records. Mr Anderson and another director Simon Selimaj are banned from leaving Australia until 27 February 2026. 'ASIC sought the orders to ensure Mr Anderson and Mr Selimaj remain in Australia to assist ASIC with its investigation and to preserve assets while ASIC's investigation is continuing,' the regulator said. Public court documents obtained by ABC News revealed Mr Anderson moved $274 million into offshore companies tied to him after he was warned about ASIC's investigation. ASIC investigators have warned the money will be hard to find. The regulator also alleged $5.6 million was put into Mr Anderson's personal ANZ account 'without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors'. He allegedly used $16,000 to make a mortgage payment on his multi-million-dollar home. 'Falcon appears to continue to redeploy the limited funds it has received to illiquid investments, despite representations made to investors that it would fulfil redemption requests and reopen the First Guardian Master Fund for investment once the cash receivables are received,' ASIC told the court. ASIC also alleged Falcon may have deceived stakeholders about the security of their investment and possible returns. Lawyers for Mr Anderson said 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' Dan Mackay of Mackay Chapman lawyers said. ASIC found that in the 'best-case scenario' $81 million of investor funds were unaccounted for but accepted the money loaned to overseas businesses may never be recovered. One investor stands to lose $677,000. ASIC is also investigating Melbourne-based financial adviser Ferras Merhi who ran Venture Egg Financial Services and led thousands of clients into the First Guardian Fund. The Federal Court has made interim orders freezing some assets of Mr Mehri who is linked to at least 2,440 clients who invested $179 million in First Guardian funds. While telling clients to invest in First Guardian, Mr Merhi was also being paid to market the fund. In court documents it was alleged Mr Mehri received more than $19 million in payments from First Guardian for marketing services. Small business owner Greg McElherron could lose thousands of dollars and pleaded with the government to step in and protect superannuation investors. 'Everyone is running for the hills trying to cover their backsides. It's absolutely shameful,' he said. 'If you're going to be not only encouraged but mandated to put money into your super, it should be protected.'
