Mayfair 101 Group is contesting a combined penalty of $30 million ordered against four companies within the group late last year.
The penalty relates to misleading advertising by Mayfair Wealth Partners ($10 million) and Online Investments (trading as Mayfair 101 – $4 million), M101 Nominees ($8 million) and M101 Holdings ($8 million) when promoting the M+ and M Core Fixed Income Notes in March this year.
The products were advertised in newspapers, on websites, and through Google search advertising.
The court found that the notes were promoted as comparable to and of similar risk profile to bank term deposits when they were of significantly higher risk and that they carried no risk of default when there, in fact, was a risk that investors could lose some or all of their principal investment.
Meanwhile, Mayfair managing director James Mawhinney is challenging a 20-year ban on dealing in financial products which was imposed last April.
In the ruling, Justice Anderson found that Mr Mawhinney had shown no remorse “for the loss and harm caused to investors in the Mayfair products”.
Mr Mawhinney issued a statement on the appeal submissions on Friday, 8 April.
“The events of the past two years have been a shocking experience, it is almost surreal what has occurred,” he said.
“Nearly 600 Australians who entrusted Mayfair 101 with their funds have had their lives and wellbeing put on hold while we respond to the allegations against us with one hand tied behind our back.
“It is a terrible situation that might well have been avoided if a more conciliatory and careful approach had been taken by ASIC.”
Both appeals are scheduled to be heard over five days starting from Monday, 22 August 2022.
“A favourable outcome in these appeal cases will allow us to rebuild and set a course for our investors to be made whole,” Mr Mawhinney said.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
