Former Sydney Banker Drawn into $833M Mars FX Collapse
Synopsis
Former Sydney investment banker Ashish “Hash” Patel is among the principals behind Novus Capital Partners, which managed the collapsed Mars FX fund amid investigations into almost US$600 million in missing investor funds.
A former Sydney investment banker is at the centre of a widening investigation into the collapse of an offshore hedge fund after almost US$600 million (about A$833 million) in investor funds went missing.
Ashish “Hash” Patel, 53, is one of four principals behind California-based Novus Capital Partners, which managed Mars FX.
Patel previously held a senior investment banking role at Merrill Lynch Australia in Sydney during the early 2000s. He later co-developed the Mars FX trading system which began operating in 2020.
There is no suggestion that Patel has personally been accused of wrongdoing.
US and overseas authorities are investigating the circumstances surrounding Mars FX’s collapse while lawsuits have been filed across several jurisdictions.
From Strong Returns to Liquidity Crisis
Mars FX attracted hundreds of investors across the US and Europe, including wealthy individuals and family trusts. The fund required a minimum investment of US$250,000 and promoted a performance record that appeared unusually strong.
An investor update in May 2023 reported annual gains averaging about 18% with no monthly losses. The fund subsequently encountered severe liquidity problems in late 2024 before entering bankruptcy proceedings.
US prosecutors in Manhattan, the FBI and a grand jury have sought information about Mars FX and Novus Capital Partners. The matter has also been referred to US financial regulators and authorities in the UK and British Virgin Islands.
Questions Over Missing Money and Oversight
The collapse has triggered litigation involving multiple businesses connected to the fund. One Delaware lawsuit names Novus Capital Partners, Patel and other individuals, as well as Deloitte, which had audited Mars FX’s financial statements. The allegations remain contested and no criminal charges have been filed against the named individuals in connection with the collapse.
Public SEC filings show Patel was listed as an executive officer and promoter of Mars FX US LP, alongside other Novus principals.
The episode is now drawing attention to the risks surrounding private investment vehicles that promise unusually consistent returns while operating across multiple jurisdictions.
For investors, the central questions are where the missing funds went, whether adequate controls were in place and how the reported performance was generated. Those answers will depend on the ongoing investigations and court proceedings.
Source: Financial Review
Vishal is an experienced Editor at Inspirepreneur Magazine with key interests in artificial intelligence, eCommerce, entrepreneurship, lifestyle and startup sector. Prior to joining Inspirepreneur, he was a Content Writer cum Correspondent at Siliconindia Magazine, where he worked on Company Profiles, Cover Stories, Executive Profiles, Feature Articles and Thought Leadership content.
