Mayfair 101’s Mawhinney sues ASIC for defamation
Mayfair 101 head, James Mawhinney, is suing the Australian Securities and Investments Commission (ASIC) and deputy chair Sarah Court for defamation.
This followed publication of a media release stating Mawhinney had caused 500 investors to lose $211 million.
He is alleging Court provided quotes to the release stating:
- He knowingly misled the public by marketing high-risk products as low risk, and thereby caused 500 investors in the Mayfair 101 group to lose approximately $211 million;
- By reason of his serious misconduct in advertising investments, receiving or soliciting funds and misleading marketing, he caused 500 investors in the Mayfair 101 group to lose approximately $211 million; and
- By reason of his serious misconduct in advertising investments, receiving or soliciting funds and misleading marketing, he caused so much harm to investors in Mayfair 101, that, unless restrained by injunctions of the court while proceedings continue, he would cause further harm to investors.
He was also seeking claims for damages and aggravated damages arising from his reputation being “seriously injured” as well as for “distress and embarrassment” caused by the release.
The proceedings were filed in the Federal Court of Western Australia where Mawhinney resided.
Last month, Mawhinney successfully overturned a 20-year ban on him from advertising investments and raising funds from the public through financial products.
AUTHOR
Laura Dew
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
