Sequoia chair resigns amid InterPrac turmoil

Mike Ryan, chair of ASX-listed Sequoia Financial Group which owns the under-fire InterPrac Financial Planning, has resigned from the embattled company.

Sequoia told the ASX on Tuesday afternoon the departure will be effective from 16 June and that the move reflected the expansion of his other board responsibilities which impacted his availability for the group.

But the resignation comes after Sequoia halted the sale of InterPrac to the little-known Conquest Investment Partners for $50,000 after regulatory intervention impacted the process of the sale.

Former ASIC Commissioner Danielle Press also recently quit a governance committee established by the group, seven months after she was recruited to help lift governance standards at InterPrac.

Ryan joined the company as chair in August 2024 and Professional Planner understands was influential in bringing Press in to help lift governance standards.

Incoming ASIC chair Sarah Court told Professional Planner earlier this week that the regulator blocked the InterPrac sale due to concerns about the company being phoenixed.

“We were very concerned about the proposed sale of InterPrac and very concerned about what [that meant] for any of the liabilities that sat with InterPrac for those losses,” Court said.

ASIC acted against the Shield and First Guardian funds over concerns investor money was being misused on high-risk investments, pet projects of directors and personal expenses, and court proceedings against both funds are ongoing.

But the investments grew due to a sophisticated network of lead generators that contacted people who used online “superannuation health check” advertisements and applied high-pressure sales tactics to refer them to financial advisers.

ASIC has taken InterPrac to court over allegations that it failed in its oversight responsibilities of advisers involved in distributing the funds.

ASIC has alleged former InterPrac authorised representative Ferras Merhi, who has also been taken to court, signed 6000 Statements of Advice within a three-year period and used marketing companies to push potential clients to his financial advice businesses while receiving nearly $18 million in upfront advice fees and $19 million from entities associated with the funds to market them.

Merhi has disputed any wrongdoing and told Professional Planner last month that he expects the courts will find in favour of any adviser who fights the regulator’s claims that they failed to meet client best interests.

InterPrac had ceased authorising Merhi in May 2025, but the adviser said he “can’t fault” Sequoia managing director Garry Crole nor does he understand why Crole and InterPrac advisers are being blamed for the collapse.

AFCA has released lead determinations against the licensee for advice failures, but InterPrac is suing the AFCA over concerns about its jurisdictional coverage which is unable to apportion blame to managed investment schemes, and the case has been re-filed to include First Guardian investor Melinda Kee into the suit.