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VID524/2020 - ASIC v M101 Nominees Pty Ltd & Ors

Commenced

13 August 2020, Federal Court of Australia

Judge

The Honourable Justice Stewart Anderson

Relief Sought

Application to wind up the company on 'just & equitable' grounds. 

Imposition of interim injunctions to stop Mr Mawhinney:

  • Receiving or soliciting funds in connection with any financial product;

  • Advertising or promoting any financial product; 

  • Removing from Australia any assets acquired with funds received in connection with any financial product; and

  • Leaving or attempting to leave Australia.

Appointment of provisional liquidators over M101 Nominees Pty Ltd.

Appointment of receivers & managers over 14 unit trusts holding Mission Beach & Dunk Island assets. 

Life ban against Mr Mawhinney sought after the company was wound up.

Timeline

  • 18 May 2020 - ASIC engages Jason Tracy of Deloitte to write an expert opinion on the security of the M Core notes. ASIC's instructions contain an error (a missing comma). 

  • 12 June 2020 - Tracy publishes his expert opinion.

  • 5 August 2020 - ASIC instructs Tracy to opine further documents, including Naplend Facility. ASIC provides Naplend Facility to Tracy.

  • 12 August 2020 - Tracy publishes First Supplementary Report. Report identifies Naplend Facility 48% p.a. default interest rate.

  • 13 August 2020 - ASIC applies ex parte to wind up the company and impose interim injunctions. Tracy's first opinion relied upon by ASIC. Supplementary report not disclosed.

  • 24 September 2020 - Provisional liquidator report published by Said Jahani and Philip Campbell-Wilson of Grant Thornton. Liquidators considered scheme was unsustainable and insolvent since inception.

  • 21 January 2021 - Mayfair 101 consents to winding up following legal advice.

  • 22 January 2021 - ASIC advises Mr Mawhinney it seeks a life ban from dealing in financial products.

  • 29 January 2021 - Court appoints liquidators Said Jahani and Philip Campbell-Wilson to M101 Nominees Pty Ltd.

  • 19 April 2021 - Federal Court awards ASIC a 20-year ban against Mr Mawhinney.

  • 9 June 2021 - Mr Mawhinney files Notice of Appeal. Application to have the matter dismissed with costs.

  • February/March 2022 - Appeal to be heard in the Full Court of the Federal Court.

Note: As of 25 September 2021 Mr Mawhinney has never been interviewed by ASIC or the Federal Police. An investigation has been ongoing for over 2 years.  Mr Mawhinney's appeal is to have the matter dismissed with costs.

Court Documents

3rd Party Documents

  • Provisional liquidator's report - M101 Nominees Pty Ltd

  • ASIC's brief to Jason Tracy (expert witness, Deloitte) - Page 4 - missing comma 

  • Expert Opinion of Jason Tracy 12 June 2020

  • Expert Opinion of Jason Tracy - First Supplementary Report 12 August 2020

  • Expert Opinion of Jason Tracy - Second Supplementary Report 14 September 2020

  • Expert Opinion of Jason Tracy - Third Supplementary Report 10 December 2020

  • Naplend Facility Agreement & Amending Deed - $14.2m bridging finance used to facilitate property settlements in Q1 2020. 

Mayfair 101 Documents

ASIC Press Releases

Mayfair 101 Press Releases

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Update to Investors

The Mayfair 101 Group of companies reminds investors prior to investing in the products offered by the Mayfair 101 Group that:

  1. Mayfair 101 is not a bank, and nor are any of the companies in the Mayfair 101 Group. Therefore, the Mayfair 101 Group is not regulated by the Australian Prudential Regulation Authority (APRA) and investment in its products is not covered by the Australian Government’s Financial Claims Scheme (colloquially known as the ‘Government Bank Guarantee’ which covers deposits up to A$250,000 per depositor, per bank).
     

  2. As with all investment products, there are risks in investing in the Mayfair 101 Group’s products.
     

  3. Investing in the products offered by the Mayfair 101 Group is not the same as depositing money in a term deposit offered by a bank. Investing in Mayfair 101 Group products has a higher level of risk compared to investing in a bank term deposit.
     

  4. In certain circumstances, the Mayfair 101 Group can exercise the right to suspend some or all redemptions at the end of the fixed term. The Mayfair 101 Group exercised this right on 11 March 2020. As such, all redemptions are currently suspended until such time as management agrees to lift the suspension and process redemptions. Your investment in the products offered by the Mayfair 101 Group may also be subject to suspension of some or all redemptions at the end of the fixed term. This is a risk that you should take into account