The Australian Securities and Investments Commission (ASIC) sued former financial adviser Osama Saad today (Wednesday) over about A$34 million (about $22 million) paid to his companies. The money came from entities linked to two retirement funds that later collapsed.The regulator alleges the payments were routed around Australia's ban on conflicted remuneration, which stops advisers from taking benefits that could sway the products they recommend.According to ASIC's concise statement filed with the Federal Court, Saad's company Atlas Marketing signed a May 2023 agreement entitling it to a monthly payment of 6% of the money invested by "Converted Leads" in the First Guardian Master Fund.London's trading industry is coming home!A separate arrangement with the developer behind the Shield Master Fund set an 8% fee on client money, ASIC alleges. First Guardian and Shield together drew about A$1.1 billion from roughly 11,000 investors, as ASIC widened its case to auditors and an offshore vehicle in August.Payments Set as a Share of Money RaisedEntities connected with First Guardian paid about A$24.4 million to Atlas and Saad's other company, United Capital, between May 2022 and early 2024, according to the filing. Shield-linked entities paid about A$10.1 million over a similar period.The payments were made on a commission basis, under profit-share deals or as purported "infrastructure" fees, ASIC claims.About A$16.2 million then went to marketing and lead-generation firms, including Aus Super Compare and Just Sort My Super, which directed retail clients to the advice businesses Venture Egg and Financial Services Group Australia (FSGA).Those two firms advised at least 2,312 retail clients between October 2022 and November 2023 to move a large share of their superannuation into First Guardian, Shield or both, the regulator alleges. FSGA was controlled by Ferras Merhi, whom ASIC describes as Saad's associate.Venture Egg was a corporate authorized representative of Interprac Financial Planning, whose representatives advised 6,843 clients to put about A$677 million into the two funds.ASIC banned former Sequoia Financial Group chief executive Garry Crole from management roles for 10 years in September over Interprac's oversight."We allege Mr Saad participated in schemes to avoid these laws," ASIC Chairwoman Sarah Court said.ASIC also alleges at least A$6.7 million went to Saad, to people and entities linked to him or to Merhi, or was spent for Saad's personal benefit.Advice to 217 ClientsThe second set of claims concerns Saad's own advice. Between February and December 2021, he advised 217 retail clients to roll over their super into a choice fund and put more than A$25.3 million into First Guardian, ASIC alleges.The regulator says that advice breached the best interests duty, was inappropriate and put Saad's interests ahead of his clients'. According to the filing, he was helping arrange marketing and lead generation for First Guardian while advising clients to invest in it.Saad was himself an authorized representative of Interprac from June 2016 to December 2021 and advised clients through Venture Egg.Court said Saad "steered the retirement savings of hundreds of Australians into high-risk investments" that later collapsed. The Federal Court froze some of his assets in February 2025 on ASIC's application.Seventeenth Case Over the Two FundsThe case is the 17th proceeding ASIC has started over First Guardian and Shield, and the regulator said it expects to take further action. The collapse is one of its 2026 enforcement priorities.In March 2025, ASIC applied to wind up First Guardian's responsible entity, Falcon Capital, after it flagged about A$274 million in overdue cash receivables at the fund.Falcon was wound up in April 2025. Shield's responsible entity, Keystone Asset Management, is also in liquidation.The allegations have not been tested in court. ASIC is seeking declarations, pecuniary penalties, orders restraining Saad from providing financial services and his disqualification from managing corporations.This article was written by Damian Chmiel at www.financemagnates.com.