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

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Commenced

13 August 2020, Federal Court of Australia

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Judge

The Honourable Justice Stewart Anderson

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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.

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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.

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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.

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Court Documents

• Originating Process

• Transcript - ex parte hearing - Ponzi schemes, fraud, flight risk allegations introduced by ASIC's counsel.

• First affidavit of Dayle Buckley (ASIC officer) - Relied upon by ASIC in ex parte hearing

• Fourth affidavit of Lisa Saunders (ASIC officer) - Page 18 - photocopy of memory stick containing 6,040 pages of court documents.

• Orders of Justice Anderson winding up M101 Nominees Pty Ltd.

• Final judgement - Mr Mawhinney's 20 year ban​

• Notice of Appeal

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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. 

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Mayfair 101 Documents

• Offer Document - M Core Fixed Income

• Deed Poll - M Core Fixed Income - c5.6 provides for suspension of redemptions. 

• Security Trust Deed (M Core notes) - Schedule 1 c7.3 confirms compliant security types (cash, real estate, other assets).

• Mayfair 101's Formal Response - Provisional Liquidator's Report of Said Jahani and Philip Campbell-Wilson.

• Financial Statements & Explanatory Notes - M101 Nominees Pty Ltd, 13 August 2020.

• Eleuthera Facility Agreement - c2.3(a)(i) specifies each drawdown term is 12 months.

• Drawdown Notices - 229 individual drawdowns between Eleuthera Group Pty Ltd and M101 Nominees Pty Ltd.​

• Infographic - M Core notes security structure vs Tracy's opinion.

• Open Letter to ASIC re impact of ASIC's investigation on Mayfair 101's investors.

• Economic Impact Assessment, Project Paradise - Estimated 10,000 jobs for FNQ and $1.6 billion investment in the region.

• Expert Analysis - Dunk Island and Mission Beach residential mixed-use development.

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ASIC Press Releases

• ASIC obtains interim injunctions against James Mawhinney and appointment of provisional liquidators to Mayfair debenture issuer

• ASIC succeeds in winding-up Mayfair 101 debenture issuer

• ASIC secures 20-year ban for Mayfair 101 director James Mawhinney from fundraising and promoting investment products

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Mayfair 101 Press Releases

• Playing Against A Stacked Deck - Mayfair 101 calls for ASIC to abide by its legal obligations

• Noteholder Meeting to be Fast-tracked

• Federal Court Consents to Mayfair 101’s Mediation Request

• Mayfair 101’s Mawhinney takes to Twitter to Shut Down Ponzi Allegations

• Mayfair 101 Consents to Winding Up Order for M101 Nominees Pty Ltd

• ASIC Relies on Error-Riddled Reports to Crucify Mayfair 101 Investors

• ASIC Confirms No Dishonesty or Fraud in case against Mawhinney

• Statement by James Mawhinney in response to Federal Court decision

• Mayfair 101 files Notice of Appeal in the Full Court of the Federal Court

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Latest updates

Update to Investors

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

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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