The Federal Court has extended interim travel restraint orders previously obtained by ASIC against Mitchell Atkins, an undischarged bankrupt and former director of private lending firm Magnolia Capital.
The initial ex parte orders made by the Court on 19 June 2023 prohibited Mr Atkins from leaving Australia without the consent of the Court and required him to surrender to the Sydney Registry of the Court all passports held by him and any airline tickets for travel outside Australia until further order.
On 26 June 2023, the Court ordered that the interim orders remain in place until further order of the Court.
The orders were sought as part of ASIC’s investigation into Mr Atkins and companies in the Magnolia Group. ASIC’s preliminary investigation into the failure of the Magnolia Group indicate that it operated a private lending business sourcing capital from private investors and that approximately $40 million in investor losses are presently unaccounted for.
ASIC’s investigation is continuing.
The matter will next appear before the Court for a final hearing on 11 August 2023.
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Background
Mitchell Atkins was sole director of a group of companies trading as Magnolia Group, comprising a large number of corporate entities, many of which were placed into liquidation between August 2022 and May 2023.
Mr Atkins and the business operated by the Magnolia Group included an authority to operate as an authorised representative of Guildfords Funds Management Pty Ltd.
Editor’s note 1:
On 24 July 2023, the Federal Court ordered (with the consent of the parties) that until 19 December 2023 Mr Atkins be restrained from leaving Australia without leave of the Court. The final hearing of ASIC’s application, which was listed on 11 August 2023, has been vacated.
Editor's note 2:
On 21 December 2023, the Court extended the travel restrictions until 30 June 2024, subject to permitting him to travel overseas to Spain in the period 8 to 30 January 2024 in order to undertake a medical procedure.