The Federal Court of Australia has handed Mayfair 101 director James Mawhinney fresh injunctions preventing him from promoting or raising funds through financial products for 15 years, following findings that he had a “cavalier attitude to compliance.”
Mayfair 101 director Banned for 15 Years from Financial Promotions
According to a report by the Australian Securities and Investments Commission (ASIC), Justice Button ruled that Mr Mawhinney demonstrated a “willingness to adopt a reckless approach to the conduct of a financial services business,” extending the total period of restraint orders against him to 20 years.
He has been subject to interim bans since August 2020 after proceedings brought by ASIC.
In her decision, Justice Button said the “operations established and run by Mr Mawhinney exposed investors to an obvious and substantial risk of loss, which risk materialised, resulting in investors suffering heavy losses.”
She added that he gave “no proper consideration of how obligations to investors would be met,” relying only on “raising more and more money from investors.”
An ASIC spokesperson welcomed the ruling, saying: “This is the culmination of a matter that has taken many years and considerable resources. ASIC first acted in this matter over five years ago to protect the public.”
The spokesperson added the Court found “an unacceptable risk that Mr Mawhinney would re-enter the fray and operate in the financial services sector in a financially reckless manner.”
The injunctions follow earlier findings in July that Mr Mawhinney was associated with breaches of the law committed by Mayfair 101 companies. Costs will be determined at a later date.
