The Federal Court has found that Mayfair 101 Group director James Mawhinney was associated with or involved in contraventions of the law by companies in the Mayfair 101 Group, following proceedings brought by ASIC.
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 across various periods between 3 July 2019 and 5 May 2020.
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 by failing to disclose in marketing material that investor redemptions had been suspended.
Finally, the Court found that Mayfair 101 Group company IPO Capital carried on a financial services business from 2016 to December 2017 without an Australian Financial Services Licence.
The Court found that Mr Mawhinney was associated with or involved in the above contraventions.
Contrary to ASIC‘s allegation, the Court determined 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.
The Court also found that while Mayfair 101 Group companies made certain representations relating to the use of funds invested in the Core Notes, and the security to be granted to an investor in the Australian Property Bonds, those representations were not misleading or deceptive, as ASIC had alleged. The Court also rejected the case advanced by ASIC that family trusts associated with Mr Mawhinney received amounts traceable to funds invested in the Core Notes.
ASIC is seeking injunctions restraining Mr 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.
Mr Mawhinney requested an opportunity to make further submissions on relief following Justice Button's decision.
The parties are to make any further submissions on relief within 21 days.
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Background
The Mayfair 101 Group offered investments in multiple financial products including Core Notes, M+ Notes, the IPO Wealth Fund, Australian Property Bonds and IPO Capital. The companies that offered the Core Notes and the IPO Wealth Fund are in liquidation and redemptions in the remaining products have been suspended since March 2020.
On 19 April 2021, the Federal Court restrained Mr Mawhinney from promoting and raising funds through financial products for 20 years (21-076MR). This decision was overturned on 15 September 2022 following an appeal by Mr Mawhinney, and the matter was remitted back to the Federal Court for another hearing (22-254MR). The remitted hearing was heard before Justice Button between October 2024 and February 2025.
On 22 December 2021, the Federal Court ordered four companies in the Mayfair 101 Group to pay a combined penalty of $30 million for misleading or deceptive advertising (21-364MR).
ASIC has a dedicated webpage for Mayfair 101 Group investors.
Editor's note:
On 21 July 2025 Justice Button made orders extending the time for the parties to make any further submissions on relief to 15 August 2025.
Editor's note 2:
On 5 September 2025, the Federal Court imposed restraint orders on Mr Mawhinney (refer 25-197MR).
Editor's note 3:
Mr Mawhinney has filed a notice of appeal.