Australia court upholds five claims against Mayfair 101 head

Mayfair 101 made multiple false and misleading representations in marketing some of its products.

Australia’s Federal Court has found that Mayfair 101 group director James Mawhinney contravened the law, following proceedings brought by Australian Securities and Investments Commission (ASIC).

Of the nine claims made against Mawhinney, the court found him liable for five.

Mayfair 101 is described as an “independent investment bank” in its Crunchbase profile.

The court determined that Mayfair 101 Group companies contravened the law when they made multiple false or misleading representations in the marketing of the M+ Fixed Income Notes (M+ Notes), M Core Fixed Income Notes (Core Notes) and Australian Property Bonds, ASIC said in a statement.

The contraventions happened between 3 July 2019 and 5 May 2020, it said.

The court also determined that Mayfair 101 Group companies engaged in misleading or deceptive conduct from 11 March 2020 to just prior to 2 April 2020.

The companies reportedly failed to disclose in marketing material that investor redemptions had been suspended.

Contrary to ASIC’s allegations, however, the court said that Mayfair 101 Group companies did not represent that its Core Notes and M+ Notes, were comparable to, and of similar risk profile to bank term deposits.

ASIC said that it is seeking injunctions restraining Mawhinney from advertising and fundraising through financial products; and from removing from Australia any assets acquired with funds received in connection with a financial product.