The 20-year ban on Mayfair 101 director, James Mawhinney, has been overturned by the Federal Court.
The ban in April 2021 restrained him from advertising investments and raising funds from the public through financial products.
Mawhinney had appealed the ban and it was overruled by the Court on the ground that he was “denied procedural fairness because ASIC [the Australian Securities and Investments Commission] had not sought certain findings of contraventions, but the primary judge made and relied on those findings in making the restraining order”.
Pending the final determination of the matter, the Court reinstated the interim injunctions made in August 2020 which restrained him, or any company of which he was an officer or shareholder, from:
- Receiving or soliciting funds in connection with any financial product
- Advertising or promoting any financial product, and
- Removing from Australia any assets acquired with funds received in connection with any financial product.
ASIC deputy chair, Sarah Court, said almost 500 people who had invested in the Mayfair 101 group were still owed $211 million.
“ASIC took this case to protect the public from the risk of significant financial harm arising from what we believed to be serious misconduct. Mayfair, under Mr Mawhinney’s direction, marketed high-risk products as low risk.
“ASIC will carefully consider today’s judgment and evaluate our next steps. Meanwhile, as part of today’s decision, the Court has reinstated injunctions we had previously obtained against Mr Mawhinney. These measures will prevent further investor harm while proceedings are ongoing.”
