Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

ASIC winds up illegal investment scheme

ASIC/

29 July 2020
| By Oksana Patron |
image
image image
expand image

The Australian Securities and Investments Commission (ASIC) has taken action to wind up illegal investment scheme MyWealth Manager, which was operated by Mustafa Mohammed, Mahek Mustafa and Mubashir Mohammed, after finding that funds of approximately $7 million raised by the scheme were not invested for the promoted purposes.

The scheme also included related companies MyWealth Manager Financial Services and 3M Financial Planning which was trading as MCube Planners.

According to the regulator, from February 2017, MyWealth Manager encouraged clients of MCube Planners to roll-out their existing superannuation funds, establish their own self-managed superannuation funds (SMSFs) and invest in MyWealth Manager.

Following this, the Federal Court had found that all of the investors’ funds were misappropriated by those operating the scheme and that the defendants had contravened the Corporations Act by operating the unregistered scheme while failing to hold the required Australian Financial Services (AFS) licence.

“Consumers should be wary when they are presented with investment opportunities offering high returns and should seek independent financial advice from a licensed financial advisor before making investment decisions,” ASIC’s deputy chair, Daniel Crennan, said.

ASIC also obtained an order that a related company, MyWealth Protection Pty Ltd be wound up. Timothy Norman and Robert Woods of Deloitte Financial Advisory Pty Ltd were appointed liquidators of the companies and the Scheme.

Mustafa Mohammed, Mahek Mustafa and Mubashir Mohammed currently reside in India.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

10 hours 21 minutes ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 4 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 6 days ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

3 days 4 hours ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND