The Federal Court has ruled that Mayfair 101 founder James Mawhinney cannot fundraise for or advertise financial products for 20 years.
The judgement, delivered this morning, ordered that Mawhinney and any of his employees or any companies he is a part of cannot solicit funds in connection with any financial products for 20 years.
The M Core Fixed Income Notes, M+ Fixed Income Notes and Australian Property Bonds which were advertised to wholesale investors by Mayfair 101 were mentioned specifically in the judgement. Mawhinney will no longer be able to promote these products.
He cannot receive any funds in connection with any financial products or advertise or promote any financial product.
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Mawhinney will also need a court order to remove or transfer any assets or funds from Australia in connection with any financial product.
ASIC had sought to permanently restrain Mawhinney from operating in financial services for at least a period of 20 years.
The judge, Justice Anderson, slammed Mawhinney's conduct as managing director of Mayfair 101.
"Mr Mawhinney's conduct can accurately be described as reprehensible conduct which demonstrates a complete disregard for financial services laws and, as a consequence, places the public at great risk of financial loss should Mr Mawhinney not be restrained by the form of injunction sought by ASIC," he said.
Mawhinney has continued to defend himself through widely distributed media releases.
As recently as last month he insisted that ASIC was prosecuting him for a crime that was never committed and said that there was no misappropriation of funds and no fraud on his behalf.
Although Mayfair 101's products were allegedly marketed to wholesale, sophisticated investors Financial Standard has heard from many individuals who lost their life savings in Mayfair 101 investments.
Many of these investors were under the impression that Mayfair debenture products were as risk-free as bank term deposits and invested in them through their SMSFs.
Investors in these products are yet to receive any compensation as Grant Thornton continues to work to liquidate funds.