First a 20 year ASIC ban, now contempt charges

The director of the now-defunct Mayfair 101 investment group, James Mawhinney has already been banned by the Australian Securities and Investments Commission (ASIC) for 20 years and the regulator is now pursuing contempt charges against him.

ASIC announced today it had filed a contempt application against Mawhinney in the Federal Court noting in a media release that it was “seeking an order punishing Mr Mawhinney for contempt.

ASIC said ity had also issued separate Federal Court proceedings against Mawhinney, Australian-based company Eleuthera Group Pty Ltd and UK-based Eleuthera Group Ltd (together, the Eleuthera Entities).

“These proceedings allege Mr 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 said.

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 Mr 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,” the ASIC announcement said.