Mayfair 101 director James Mawhinney returns to court to face contempt allegations

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James Mawhinney, director of the Mayfair 101 group, is back in the sights of the Australian Securities and Investment Commission (ASIC), which claims to have violated a ban prohibiting him from raising funds.

ASIC seeks an order punishing Mawhinney for contempt, alleging that the businessman failed to comply with Federal Court orders to cease fundraising through financial products for 20 years.

That order was issued in April of this year, with the Federal Court finding that there was a high likelihood that the Director would engage in similar conduct again if a restraining order was not made.

At the time, the Federal Court characterized his conduct as “reprehensible”. With around $ 211 million in losses to investors attributed to multiple product failures in the Mayfair 101 group, ASIC Vice President Karen Chester celebrated the victory on behalf of unsuspecting investors who were “Lured” to high risk products through deceptive marketing.

The findings follow another Federal Court ruling, which found Mayfair 101 misled investors by promoting bond products online as term deposits.

ASIC also today launched separate proceedings in the Federal Court against Mawhinney, Australian company Eleuthera Group Pty Ltd and UK company Eleuthera Group Ltd (together, the Eleuthera entities).

These proceedings allege that Mawhinney and the Eleuthera Entities have made false or misleading statements and engaged in deceptive or deceptive behavior, or behavior likely to mislead and deceive consumers, by sending emails directly to consumers regarding investment options, conditions and rates of return.

ASIC also alleges that Eleuthera Group Pty Ltd operated a financial services business in Australia without holding an Australian financial services license when it was required to do so.

ASIC seeks civil penalties, injunctions preventing Mawhinney and the Eleuthera entities from promoting or soliciting funds from consumers for alleged credit opportunities or similar products, and orders preventing Eleuthera Group Pty Ltd from carrying on a service business financial institutions in Australia.

Mawhinney has been approached for comment.

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