ASIC has obtained bankruptcy orders against finfluencer Tyson Scholz for his failure to pay Federal Court costs of more than $450,000.
The corporate regulator has successfully sought sequestration orders in the Federal Court against social media finfluencer Tyson Robert Scholz, with the effect of making him bankrupt.
This was due to Scholz failing to pay costs of over $450,000 ordered by the Federal Court relating to proceedings brought by ASIC in December 2021, when ASIC sought orders restraining Scholz from promoting or carrying on any financial services business in Australia.
ASIC has now applied to the Australian Financial Security Authority to have trustees appointed over the assets of Scholz.
The court previously found Scholz, who also goes by the moniker “ASX Wolf”, contravened s911A of the Corporations Act by carrying on a financial services business between March 2020 and November 2021, without an Australian financial services licence (AFSL).
ASIC said Scholz delivered training courses and seminars about trading in securities on the Australian Securities Exchange and promoted them to his more than 118,000 followers on social media. His business to paying subscribers included subscription/membership fees of $500, $1,000 or $1,500 and offering various levels of training courses.
He also offered individual one-off share suggestions or “tips” for a fee and access to a private chat site, named Black Wolf Pit, using online communications platform Discord.
He describes himself on Instagram as a global equity trader with over 10 years of experience and continues to share his globe-trotting lifestyle with his followers.
In April 2023, the court made permanent injunctions against him, permanently prohibiting Scholz from:
- Hosting online groups for which a membership fee is charged, and in which messages are exchanged by members about share trades (either in a group chat or through direct messages from Scholz), without an AFSL.
- Carrying on a financial services business in Australia in contravention of s911A of the Corporations Act.
In a statement to Money Management, ASIC confirmed it filed a creditor’s petition against Scholz on 18 October.
This related to a debt to ASIC of $456,296.64, due under an order for costs dated 22 June 2023 for the expenses of the previous legal proceedings.
As outlined by the Australian Financial Security Authority, parties are able to apply to the court to have a person made bankrupt if they owe amounts of $10,000 or more.
To do this, they need to prove a person has committed an “act of bankruptcy” within the six months prior to the application, with the most common act being failure to comply with a bankruptcy notice.
When the creditor’s petition is presented to the court, the court may make a sequestration order which makes the person bankrupt.
