The regulator claims Mayfair 101 entities should have to pay approximately $12 million in fines for misleading and deceptive conduct, but Mayfair founder James Mawhinney maintains there was no wrongdoing.
Anderson said there was a high likelihood that Mawhinney, or entities controlled by him, would engage in similar conduct if not prevented by the court from doing so.
“Mr Mawhinney’s conduct can accurately be described as reprehensible conduct which demonstrates a complete disregard for financial services laws and, as a consequence, places the public at great risk of financial loss should Mr Mawhinney not be restrained by the form of injunction sought by ASIC,” Anderson said.
In relation to the IPO Capital, Core Notes, M+ Notes, and IPO Wealth fund products, Anderson found Mawhinney engaged in conduct that was “inherently problematic, risky, and fatally flawed”. The companies that offered the Core Notes and the IPO Wealth Fund were in liquidation and redemptions in the remaining products had been suspended since March 2020.