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Legal 

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S ECI 2020 02284 - Vasco Trustees Ltd ATF IPO Wealth Fund v IPO Wealth Holdings No 2 Pty Ltd & Ors

Commenced

22 May 2020, Supreme Court of Victoria

Judge

The Honourable Justice Ross Robson

Relief Sought

Wind up the company and 16 wholly owned subsidiaries up on 'just & equitable' grounds. 

Timeline

  • 11 September 2019 - Mayfair 101 meets with Vasco to discuss Mayfair 101 Operational Review document. Mr Mawhinney advises that M+ note monies raised will be applied to acquire assets from IPO Wealth Holdings group to rebalance the portfolio.

  • 4 October 2019 - IPO Wealth Holdings No 3 Pty Ltd sells 21,250,000 Accloud PLC shares to 101 Investments Ltd (Mayfair 101's BVI-based investment holding company) pursuant to a Share Sale Agreement for $19,460,672.96. Share transfer forms executed and sent to Accloud's head office.

  • 7 March 2020 - IPO Wealth Holdings Pty Ltd misses loan repayment ($2.3m) due to COVID-19.  $1.31m paid 6 March 2020, $205k paid 11 March 2020, $300k paid 20 April 2020, $400k paid 30 April 2020. Balance owing $785k.

  • 4 April 2020 - $4.0m repayment due.  Missed due to COVID-19.

  • 20 May 2020 - Mr Mawhinney advises Vasco that he and his advisors are evaluating a proposal made by Vasco to restructure the IPO Wealth Fund and will respond by 22 May 2020.

  • 22 May 2020 (9:05am) - Receivers appointed to IPO Wealth Holdings Pty Ltd by Vasco, alleges "sudden drop in value of fund assets".

  • 22 May 2020 - Ex parte application made by Vasco to appoint receivers to 16 SPV investment holding companies. Application granted.

  • 22 June 2020 - Mr Mawhinney appoints Cor Cordis as voluntary administrators of IPO Wealth Holdings Pty Ltd.  Appointment subsequently opposed by ASIC, Vasco, liquidators and Court. 

  • 2 July 2020 - Hamish Mackinnon and Nicholas Giasoumi (Dye & Co) appointed provisional liquidators.

  • 6 August 2020 - Mr Mawhinney and 101 Investments Ltd provide gratuitous undertaking to liquidators to not deal with 21.25m Accloud shares.

  • Late August 2020 - Mayfair 101's lawyers prepare resolutions for replacement of Vasco and retirement of provisional liquidator. Votes collected from 117 out of 181 unitholders.  95% in favour of Mayfair 101's proposal.

  • Early September 2020​ - Mr Mawhinney self-representing files 117 unitholder votes as evidence in court and files submissions.  ASIC alleges investors were misled. Vasco and liquidators discredit Mayfair 101's proposal. Court accepts ASIC, Vasco and liquidator's position. 

  • 6 September 2020 - Mr Mawhinney files 15-page response to provisional liquidators report. Response removed from court file at liquidator's request.

  • 7 September 2020 - Court asks ASIC to recommend a contradictor to represent unitholders.  Stewart Maiden QC appointed. JM blocked by court order from communicating with unitholders.

  • 6 November 2020 - Final judgement handed down.  IPO Wealth Holdings group of companies wound up on "just & equitable" grounds. Mr Mawhinney permanently banned from communicating with IPO Wealth's investors.

Court Documents

3rd Party Documents

Mayfair 101 Documents

Mayfair 101 Press Releases

Public Examinations

To assist the liquidators with their enquiries Mr Mawhinney has participated in full day public examinations on the following dates. Evidence collected in these examinations has been used to prepare proceedings against Mayfair 101 entities and Mr Mawhinney:

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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:

  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