A door has slammed shut on Wollongong investors desperate to recover millions of dollars that vanished though Australia's biggest superannuation fraud.The decision by the Financial Ombudsman Service to drop its pursuit of Wollongong financial planner Ross Tarrant is another blow to mum-and-dad investors hit by the 2009 collapse of Trio Capital.Mr Tarrant's clients face a collective loss of about $23 million after taking his advice to invest in Trio Capital's Astarra Strategic Fund.The Federal Government later declared the fund a fraud, with more than $100 million funnelled to offshore tax havens, according to regulators.More than 700 Illawarra investors will eventually receive full compensation from a $55 million bailout package because they invested through government-regulated funds. But about 200 former Tarrant Financial Consultants clients were not eligible for government assistance because they were self-managed super fund investors.Many of them turned to the Financial Ombudsman Service (FOS) in the hope the independent body would make an adverse finding against Mr Tarrant and order he repay lost funds.One Keiraville couple, who did not wish to be named, opted against joining a class action against Mr Tarrant in favour of trying to recoup more than $1.1 million through the Financial Ombudsman Service.However, the couple have been told the case would go no further because a FOS pursuit of an insolvent entity would not produce any monetary compensation.Tarrants Financial Consultants went into liquidation in 2010."We saw people joining class actions and not getting anywhere so we thought we'd try the ombudsman avenue," the 64-year-old man said.He and his 67-year-old wife have had to return to work to help recover and avoid losing the family home."To be honest, I've resigned myself to the fact we're buggered for life because now I just don't trust anybody in government to help us," he said.The FOS decision means prolonged and expensive civil court action is now the only way many may recover their money.About 100 investors are taking legal action against Mr Tarrant, alleging he provided negligent advice.Mr Tarrant has previously said his advice was based on reputable audit results and reports from recognised research houses.He claimed his former company "would never have been placed in liquidation if it wasn't for the legal threats brought about by people seeking restitution now" but declined to comment further.Last year, Financial Services and Superannuation Minister Bill Shorten said the FOS was one way investors who did not qualify for government compensation might recover some of their lost savings.A spokesperson for Mr Shorten said the Government "is very concerned at consumer losses arising from the Trio Capital dispute" but said the FOS was an independent body not subject to his direction."FOS has made this particular decision based on the circumstances of the situation, that is, taking into account that there is an insolvent respondent and therefore there is little to no chance of obtaining redress for the affected parties," he said.The Financial Ombudsman Service received 32 dispute applications from people advised by financial planners to invest in the Astarra Strategic Fund.Twenty-eight of those were lodged against one person.Many complaints were withdrawn once the applicants were told Mr Tarrant's business was being wound up as insolvent.A FOS submission to a recent parliamentary inquiry said the plight faced by clients of an insolvent financial services provider brings into "sharp focus" the inadequacy of present legislative requirements and the need for improved compensation schemes.A government-ordered report on the possibility of extending a fraud compensation scheme to all investors is due shortly.Former Trio Capital investment manager Shawn Richard last year was sentenced to a minimum of two years and six months in jail for his role in the Trio Capital saga.The Australian Security and Investments Commission has banned Mr Tarrant from providing financial advice until 2018.He is appealing the decision.