Mayfair 101 and Mawhinney appeal against $30 million fine and ban

Mayfair 101 Group is challenging a combined $30 million fine imposed on four group companies late last year.

The penalty relates to misleading advertising by Mayfair Wealth Partners ($10m) and Online Investments (trading as Mayfair 101 – $4m), M101 Nominees ($8m) and M101 Holdings ($8m) ) when promoting M+ and M Core Fixed Income Notes. in March of this year.

The products were advertised in newspapers, on websites, and through Google search advertising.

The court found that the notes were presented as comparable and having a similar risk profile to bank term deposits when they presented a significantly higher risk and carried no risk of default when in fact there was a risk that investors will lose some or all of their principal investment.

Meanwhile, Mayfair chief executive James Mawhinney is challenging a 20-year ban on trading financial products that was imposed last April.

In the ruling, Judge Anderson found that Mr Mawhinney had shown no remorse “for the loss and harm caused to investors in Mayfair products”.

Mr Mawhinney released a statement on the appeal submissions on Friday, April 8.

“The events of the past two years have been a shocking experience, it’s almost surreal what has happened,” he said.

“Almost 600 Australians who have entrusted their funds to Mayfair 101 have had their lives and wellbeing put on hold as we respond to the allegations against us with one hand tied behind their back.

“This is a terrible situation that could well have been avoided had a more conciliatory and cautious approach been taken by ASIC.”

Both appeals are to be heard over five days beginning Monday, August 22, 2022.

“A favorable outcome in these appeals cases will allow us to rebuild and set a course for our investors to be healed,” Mawhinney said.

Mayfair 101 and Mawhinney appeal against $30 million fine and ban

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Last update: April 11, 2022

Posted: April 11, 2022

Neil Griffiths

Neil Griffiths

Neil is the Associate Editor for Wealth Headlines including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.