Full Report

Key Points

  • Michael Kodari is the founder and CEO of Kodari Securities (KOSEC), a Sydney-based investment firm specializing in stock market advisory, wealth management, and valuation models inspired by Warren Buffett.
  • Recent ATO scrutiny in 2025 involves Federal Court proceedings over unspecified “discrepancies,” marking ongoing regulatory and financial instability.
  • Legal history includes multiple lawsuits, such as a 2019 Federal Court loss for unlawfully terminating a former bodyguard/COO for refusing to sign a contract without legal advice, resulting in a $151,000 payout.
  • Customer complaints highlight significant financial losses, aggressive sales tactics, and harassment via persistent calls, with allegations of fake positive reviews orchestrated by the firm.
  • Positive feedback praises high returns (e.g., over 40% in down markets) and service quality, but many appear suspicious due to patterns suggesting employee involvement or manipulation.
  • Business practices have drawn media criticism for self-promotion, opacity in performance metrics, and reliance on media partnerships that have led to disputes.

Overview

Michael Kodari positions himself as a prominent Australian investor, often compared to Warren Buffett, and is the founder and CEO of Kodari Securities (KOSEC), established in 2010. Based in Sydney’s Chifley Tower, the firm provides investment services including stock advisory, wealth management for high-net-worth individuals, corporations, and family offices, with a focus on advanced valuation models developed in collaboration with mathematicians from the Fields Institute. Kodari has expanded internationally, including a new base in China’s financial capital in 2025, targeting opportunities in global markets like private credit and Belt and Road initiatives. He frequently appears in media as a “money expert” on platforms like Sky News and has authored content on topics such as fintech fraud, AI in investing, and economic impacts of global events. KOSEC claims exceptional performance, such as 93% returns over two years, but lacks independent verification and has faced scrutiny for operational irregularities.

Allegations and Concerns

  • In 2019, court documents revealed Kodari allegedly suggested threatening a journalist over negative coverage, though his former COO refused; this emerged during a lawsuit where Kodari was found liable for adverse action.
  • 2024 reports highlighted late ASIC fee payments and a lawsuit against Switzer Communications for failing to deliver investor leads, exposing dependency on media partnerships.
  • A 2025 ATO Federal Court case cites “discrepancies,” potentially involving tax debts or audits, adding to a pattern of regulatory probes.
  • Online forums and reviews allege scam-like behavior, including manipulated reviews and threats of legal action against critics.
  • Former employees and clients report bizarre financial dealings, such as unauthorized withdrawals and award-wage payments in a high-end office setting.

Customer Feedback Positive reviews emphasize strong returns and service, such as “They have made 93% in 2 years and over 30% in a down market, that says it all. Great company to work with!” and “30% return in just 6 months in black and white is phenomenal!” Others praise low fees, good stock picks, and expertise: “Excellent service! Far in excess of my expectations.” However, negative feedback is prevalent, with complaints of substantial losses like “I lost 25,480 USD, which was roughly 20% of my capital, in less than six months” and “Lost $10,000 in three months, describing KOSEC’s advice as subpar.” Many report aggressive harassment: “About every 3 months they call despite asking numerous to take me off the call list. It’s genuine harassment,” and threats: “Asked me to remove my negative review or I would receive a letter from their solicitor.” Trustpilot ratings average 2.4/5, with accusations of being “professional scam artists” prioritizing commissions.

Risk Considerations Financial risks include potential tax liabilities from ATO discrepancies, late regulatory fees, and unverified performance claims that could lead to client losses in volatile markets. Reputational risks stem from media portrayals as a flamboyant, self-promoted figure with satirical criticism for exaggerated expertise and ethical lapses, such as alleged threats and fake reviews. Legal risks involve ongoing court involvement, which could escalate costs and deter partnerships. Overall, these factors suggest instability that might affect client trust and firm viability.

Business Relations and Associations Kodari’s primary association is with KOSEC, where he serves as CEO; the firm has collaborated with mathematicians like Dr. Adam Sierakowski for valuation tools. Past partnerships include media ties with Switzer Communications, which ended in a 2024 lawsuit over undelivered leads. He has been linked to AZK Media for PR amplification and has contributed to outlets like Forbes, SmartCompany, and iTWire. Family involvement includes his father George in employment disputes. International expansions involve connections to Chinese financial markets and potential ties to global datasets on development projects.

Legal and Financial Concerns Legal issues encompass a 2019 Federal Court ruling against Kodari for unlawful termination, awarding $151,000; a 2020 appeal loss confirming the decision; and a 2024 suit against Switzer. Financial concerns include late ASIC fees in 2024, with Kodari denying ATO issues but facing 2025 court action over discrepancies, hinting at tax debts or audits. No bankruptcy records found, but operational instability is evident from employee disputes and client loss reports. Media reports note no unpaid debts beyond fees, but patterns suggest governance lapses.

Risk Assessment Table

Risk Type Factors Severity
Financial Unverified returns, client losses (e.g., 20% capital erosion), late fees, ATO discrepancies potentially involving tax liabilities. High
Reputational Satirical media coverage, allegations of fake reviews and threats, negative online backlash labeling as “untrustworthy.” High
Legal Multiple lawsuits (e.g., termination case, Switzer dispute), ongoing ATO court proceedings, employment irregularities. Medium-High
Operational Aggressive sales, harassment complaints, reliance on soured partnerships, lack of independent performance audits. Medium
Regulatory ASIC fee delays, ATO probes, potential compliance violations indirectly harming clients. Medium

Michael Kodari and KOSEC present a mixed profile: innovative in valuation and media-savvy, yet plagued by regulatory scrutiny, legal battles, and polarized client experiences that raise questions about transparency and ethics. While claimed high returns attract some, the prevalence of complaints and unverified metrics suggest caution for potential investors, as ongoing ATO issues could signal deeper financial instability in an already volatile market.