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ASIC hits Mayfair 101 boss with contempt charges over fund raising

Business

ASIC has filed a contempt application in the Federal Court against James Mawhinney, the director of companies in the collapsed Mayfair 101.

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The company lost millions for investors when its tourism and property project on Dunk Island and Mission Beach failed.

ASIC alleges that Mayfair’s James Mawhinney had breached Federal Court orders preventing him from raising funds through financial products.

The order banning Mawhinney was handed down by the court earlier this year and ASIC said it was seeking an order punishing Mawhinney for contempt.

ASIC also issued separate Federal Court proceedings against Mawhinney, Australian-based company Eleuthera Group Pty Ltd and UK-based Eleuthera Group Ltd.

These proceedings allege Mawhinney and the Eleuthera Entities made false or misleading representations and engaged in misleading or deceptive conduct, or conduct likely to mislead and deceive consumers, by sending emails directly to consumers regarding investment options, terms and rates of return.

ASIC also alleges that Eleuthera Group Pty Ltd carried on a financial services business in Australia without holding an Australian financial services licence when it was required to do so.

ASIC is seeking civil penalties, injunctions preventing Mawhinney and the Eleuthera Entities from promoting or soliciting funds from consumers for purported credit opportunities or similar products, and orders preventing Eleuthera Group Pty Ltd from carrying on a financial services business in Australia.

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