Melissa Louise Caddick, once a seemingly successful financial advisor from Sydney became the center of a gripping national scandal when she disappeared in November 2020. Accused of operating a large-scale Ponzi scheme that defrauded investors—mostly friends and family—of around A$30 million, Caddick’s story took a darker turn when only part of her remains were discovered months later.
The Ponzi Scheme and Financial Fraud
Between 2012 and 2020, Melissa Caddick ran a financial services company named Maliver. On the surface, everything seemed legitimate. She presented herself as a savvy investor particularly skilled in managing portfolios involving ASX-listed shares. She targeted people close to her—family, friends and acquaintances—offering what seemed like safe, promising investment opportunities.
But behind the confidence and charm was a deeply fraudulent operation. Caddick did not hold the Australian Financial Services Licence (AFSL) which is legally required to offer financial advice and investment management. According to the Australian Securities & Investments Commission (ASIC), she had no right to be managing anyone’s finances.
Forensic investigators later discovered that she forged statements from CommSec, a well-known online broker, creating fake account numbers and transaction histories to convince her clients that their investments were performing well.
Bruce Gleeson, one of the receivers from Jones Partners, who helped trace and recover her assets, told the media “I could not identify a single genuine document that Ms Caddick provided to her investors, and I could not identify any circumstances in which any of the CommSec account statements provided by Ms Caddick to her clients were found to have been true.”
Lavish Lifestyle Built on Lies
Caddick was not simply hiding the money away. Instead, she used the stolen funds—estimated at around A$30 million—to support an extravagant lifestyle. She drove luxury vehicles, owned designer fashion, adorned herself with fine jewelry and bought high-end art.
Properties in some of Sydney’s most expensive neighborhoods were also part of her portfolio, all funded through the defrauded investments of others.
As ABC News reported, over 30 bank accounts were used to move and conceal the stolen money. Counsel representing ASIC summed up the situation by saying, “all a façade and the financial services business was an elaborate front for Ms. Caddick’s Ponzi scheme.”
A Vanishing Act and a Grim Discovery
On 11 November 2020, ASIC and the Australian Federal Police raided her home in Dover Heights. Less than 24 hours later, Melissa disappeared. She left without her phone, wallet, or cards—items that were never used again. Her husband and son believed she had gone out for her morning walk but CCTV footage from the area didn’t capture her leaving the property.
For several months, Melissa Caddick’s whereabouts remained unknown. In February 2021, a running shoe containing a decomposed human foot was found on Bournda Beach, approximately 500 kilometers south of Sydney. DNA testing confirmed the foot belonged to Melissa Caddick, as reported by CNN.
In May 2023, Deputy State Coroner Elizabeth Ryan officially declared her deceased. However, she couldn’t determine how, when, or where Melissa died. In her words: “I have concluded that Melissa Caddick is deceased. However, a more problematical issue is whether the evidence is sufficient to enable a positive finding as to how she died and when or where this happened.”
Justice Through the Courts and Asset Sales
Once Caddick was presumed dead, ASIC dropped the 38 criminal charges pending against her. But the court proceedings didn’t stop there. In a civil ruling, the Federal Court declared that Caddick and her company Maliver had unlawfully operated without a license and misappropriated millions from investors.
The process of liquidating her assets began soon after. A waterfront home in Dover Heights sold for $9.8 million and luxury goods including watches and designer items were auctioned for over $860,000. By August 2023, 55 victims had received a combined $3 million in initial compensation with more payments expected from future sales, as reported by the WA Today.
As Bruce Gleeson explained, “In many Ponzi schemes, it is not unusual for investors to receive no return, so we are pleased to be able to make this distribution and anticipate further significant distributions in the future.”
The Human Cost and Legal Consequences
Caddick’s scheme involved 72 known victims, many of whom were close to her personally. Some lost their life savings. One individual, a surgeon from Perth, managed to recover his funds after telling Caddick he would be handling his superannuation himself due to a divorce—a rare instance where she returned money.
A class action was later filed against the auditors who had approved the financial statements of the self-managed superannuation funds (SMSFs) connected to Melissa Caddick’s clients. These auditors had relied on falsified documents provided by Caddick and did not identify the discrepancies.
Mackay Chapman, representing those affected, stated: “We now know that the financial reports reviewed by the auditors were supported by fraudulent documentation prepared by Ms Caddick and the assets said to be held by the SMSFs did not exist”, per IFA.
Tracing the Truth
Despite the use of cash in some transactions, experts were able to follow the digital trail of Melissa’s financial activities. Investigators examined her bank records, property holdings and auction sales to recover what they could.
Forensic accountant Roger Isaacs summed up the effort by saying, “Cash is often impossible to trace but other forms of wealth leave behind a trail that can be followed.”
Authorities believe that the discovery of her foot fits with ocean drift modeling, indicating she likely entered the water near her home around the time of her disappearance. Still, many questions remain unanswered.
Melissa Caddick’s case remains one of Australia’s most shocking financial scandals. Though some restitution has been made, for many victims, the emotional and financial toll will never fully be undone.
