Mayfair 101 founder James Mawhinney has issued proceedings against the lender who sold his family home after he took out a second mortgage on the property to defend proceedings initiated by the Australian Securities and Investments Commission.
Lawyers acting for Mr Mawhinney and his fiancée Brigette Panetta have jointly issued proceedings in the Supreme Court of Victoria against Adelaide-based financier CEG Direct Securities, and their former neighbour, Rachel Willson.
The statement of claim alleges the unlawful possession by CEG and Mrs Willson of personal items belonging to Mr Mawhinney and Ms Panetta, following the forced sale of their family home in Park Orchards, Melbourne, by CEG in April 2021.
The second mortgage was obtained by Mr Mawhinney to defend legal proceedings initiated by ASIC and IPO Wealth Fund trustee Vasco Trustees, only to find that less than four weeks later ASIC obtained Federal Court injunctions freezing Mr Mawhinney’s ability to recapitalise.
The claim alleges CEG sold the four-bedroom home for $1 million less than its market value, and that CEG did not take reasonable steps to obtain the best price for the land, including that it did not advertise the property.