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The former operator of the collapsed Shield Master Fund is suing his builder for $200 million, alleging investor money that was intended for developments was used to buy flashy cars and high-end property.
Paul Chiodo’s private company, Chiodo Corporation, has launched action in the Supreme Court of Victoria against City Built and its Ferrari-driving founder Roberto “Robbie” Filippini and members of his immediate family to claw back the money.
Chiodo’s relationship with Filippini has been a key prong of the investigation into the collapse of the $500 million Shield Master Fund in 2024 which wiped out the superannuation savings of nearly 6000 people.
The corporate watchdog recently launched two separate legal actions against Chiodo: the first over the management of Shield and the second over allegations Chiodo raised money from investors to pay his legal fees after ASIC had taken action against him. Chiodo is vigorously defending both claims and has long denied any wrongdoing.
One of ASIC’s allegations in the Shield case is that Chiodo acted inappropriately when he directed more than $150 million of the fund’s money to apartment developments across Melbourne and in Far North Queensland.
After the collapse of the Shield fund, many of the developments were left partially completed before being sold to new developers by liquidators.
Now, Chiodo Corporation is alleging that Filippini’s company falsified timesheets and invoices to inflate the amount claimed for each project.
Chiodo said in a statement that he was surprised to discover the alleged excess payments to City Built.
“We directly approached the subcontractors, suppliers and City Built’s ex-staff members,” Chiodo said.
“We examined the original invoices and timesheets lodged by the subcontractors to City Built on the development projects, and the corresponding invoices lodged by City Built to Chiodo Corporation.
“The invoice amounts we received were much greater than the subcontractors’ invoices and timesheets.”
The claim lists Filippini’s companies as defendants as well as Filippini personally. It also names his wife and two young adult children as defendants because bank accounts under their name allegedly received funds.
While Filippini has been named repeatedly in ASIC’s action against Chiodo, the flashy builder has not personally been accused by the corporate watchdog of any wrongdoing, nor have any members of his family. Lawyers for Filippini declined to comment on the matter.
Liquidators to the Shield scheme operator are already suing Filippini, alleging he should pay back the money he received from Chiodo.
The liquidators have obtained freezing orders against Filippini and his immediate family – who are all currently overseas – to cover assets of up to $50 million.
Chiodo Corporation claims in its court action it advanced “at least” $184.1 million to Filippini’s company for building works – as much as $30 million more than previously identified by liquidators.
According to Chiodo’s claim, a portion of that money, or $80.5 million, was paid to Filippini between May 2023 and October 2024.
ASIC first launched court action against Chiodo and the corporate entity that oversaw the fund, Keystone Asset Management, in June 2024.
Chiodo claims in court documents that his development company, Chiodo Corporation, appointed Filippini’s City Built to complete projects in Bentleigh, Ashburton, Doncaster, Moonee Ponds, Glenroy, Port Douglas and on his own apartment in the CBD in 2019.
Filippini’s appointment came after issues with Chiodo’s former builder Frank Nadinic, according to court documents.
At the time of his work with Chiodo, Nadinic – an associate of John Setka – had been declared bankrupt at least twice amid complaints from business associates.
City Built also overcharged Chiodo for the renovation of his own $10 million apartment overlooking Albert Park lake, the court documents claim.
Chiodo Corporation alleges Filippini applied “project funds to unrelated personal or family purposes” and were used to buy property, renovate existing property and clear out mortgages.
This includes a $15 million apartment in South Yarra and a newly built five-storey home in Toorak with a rooftop pool and a basement gymnasium estimated to be worth more than $10 million, as well as several shops in busy retail strips around the city.
Chiodo has also claimed that Filippini used the funds to purchase a garage of top-end vehicles including a Maserati Granturismo, Lamborghini Aventador SV, Lamborghini Huracán Performante, Lamborghini Aventador SVJ, Ferrari 296 GTB, Lamborghini Huracán STO, Ferrari roadster, Jaguar F-Pace as well as an Audi and a Ford.
Chiodo also hit out at the allegations from ASIC that his involvement in a US investment scheme in the past 12 months was promising 13 per cent returns.
“Shield Master Fund would have provided returns of around 13 per cent per annum to its members if the regulator had not dropped its financial nuclear bomb onto the fund, even after warnings from Keystone to ASIC about its precipitous action against Shield Master Fund.”
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Sarah Danckert is a senior reporter who specialises in investigations and corporate wrongdoing. She is a two-time Walkley Award winner, and has won six Quill Awards and two Kennedy Awards.Connect via X or email.From our partners
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