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ASIC attempts to drop key evidence in Mayfair 101 case
Key evidence may not be included in the prosecution of a man behind the collapse of an IPO investment fund that owed millions.
Naomi Neilson
James Mawhinney, managing director of Mayfair Platinum and IPO Wealth investment funds, was arrested and charged with four counts of dishonest conduct while involved in a financial services business.
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The Australian Securities and Investments Commission (ASIC) alleged Mawhinney dishonestly represented to the trustee that the IPO Wealth group owned two Italian companies when it did not.
In a statement, Mawhinney referred the media to a submission his lawyer, Robert Richter KC, said in the Melbourne Magistrates Court.
“We expect to defeat these charges, and then we will consider bringing a case for malicious prosecution,” Richter said.
“Further, we want to put it on record that there is no harm alleged by the charges.”
In a separate statement from Mayfair 101 in reference to its Federal Court case, ASIC was said to have asked to drop an expert report from a Deloitte insolvency practitioner and the affidavits of two ASIC officers.
ASIC originally initiated proceedings against Mayfair 101 on an ex parte basis in August 2020, resulting in a 20-year ban of Mawhinney’s dealing in financial products, but this was overturned.
The regulator attempted to introduce fresh claims in an amended originating process in October 2023, but this was knocked back.
Counsel for Mawhinney, Michael Pearce SC, said the report and the affidavits should be made available for the re-running of the case because the original documents resulted in a $30 million fine against Mayfair 101 entities.
He said this fine should be addressed in the fresh case.
The Federal Court reserved its decision.
