Victims of Melissa Caddick Reach $3.54 Million Settlement in Class Action

Victims of fraudster Melissa Caddick have secured a $3.54 million settlement in a class action lawsuit. Caddick, a self-proclaimed financial adviser, left investors nearly $24 million out of pocket through their self-managed superannuation funds (SMSFs) before her mysterious disappearance in November 2020.

Caddick, along with her financial services company Maliver, managed investments for 72 clients—many of whom were close friends and family—under the pretense that their funds were being wisely invested. However, her operations were revealed to be part of a multi-million-dollar Ponzi scheme, which attracted the attention of the Australian Federal Police (AFP) and the Australian Securities and Investments Commission (ASIC).

Just hours after an AFP raid on her home in Dover Heights, Caddick vanished without a trace. In February 2021, a decomposing foot confirmed to be hers washed up on a New South Wales beach, with the coroner ruling her dead in May 2023.

Allegations Against Auditors

The law firm Mackay Chapman initiated a class action in September 2023 against the auditors responsible for conducting annual audits of the SMSFs. They alleged that these auditors failed to identify fraudulent documents created by Caddick and did not verify the existence of the assets purportedly held by the funds. The lawsuit accused the auditors of negligence and misleading conduct.

“SMSFs are required to be audited annually. Between 2012 and 2020, at least five auditors were engaged to conduct these mandatory audits,” the firm stated.

The settlement was approved by Federal Court Justice Brigitte Markovic during a hearing in Sydney on Tuesday.

A Step Toward Closure

Mackay Chapman director Michael Chapman expressed satisfaction with the settlement, which came after 18 months of proceedings, representing a timely resolution for the 32 group members involved in the class action.

“This settlement achieves two important objectives: a fair and reasonable amount of compensation, and a swift resolution,” Chapman said. “We hope this final chapter in the Melissa Caddick saga will provide some measure of closure for the victims.”