ASIC files contempt application against Mayfair 101 founder

The corporate regulator is seeking an order punishing James Mawhinney for contempt after he continued to raise funds through financial products, despite in April being ordered by the Federal Court to stop doing so for 20 years. 

Mr Mawhinney was also barred from removing or transferring from Australia any assets acquired directly or indirectly with funds received in connection with any financial product.

ASIC also issued separate Federal Court proceedings against Mr Mawhinney, Australian-based company Eleuthera Group and UK-based Eleuthera Group (together, the Eleuthera Entities), for alleged false or misleading representations and conduct likely to mislead and deceive consumers after they directly emailed consumers regarding investment options, terms and rates of return.

ASIC also alleged that Eleuthera Group carried on a financial services business in Australia without holding an Australian Financial Services Licence when it was required to do so. 

The corporate regulator is seeking civil penalties, injunctions preventing Mr Mawhinney and the Eleuthera Entities from promoting or soliciting funds from consumers for purported credit opportunities or similar products, and orders preventing Eleuthera Group from carrying on a financial services business in Australia. 

In March, the Federal Court found companies in the Mayfair 101 Group, of which Mr Mawhinney was also the director, made statements that were false, misleading or deceptive in advertisements for its debenture products.