The corporate regulator is seeking an order punishing James Mawhinney for contempt after he continued to raise funds through financial products, despite in April being ordered by the Federal Court to stop doing so for 20 years.
Mr Mawhinney was also barred from removing or transferring from Australia any assets acquired directly or indirectly with funds received in connection with any financial product.
Just hours after ASIC filed the application, Mr Mawhinney responded in a statement.
“I deny ASIC’s allegations and intend on vigorously defending these proceedings so our noteholders can be made whole,” Mr Mawhinney said.
Mr Mawhinney added that the Mayfair Group still controlled assets worth around $100 million and that, subject to defending various proceedings, the company “is on track to resume distributions and redemption payments to its noteholders in 2022”.
In March, the Federal Court found companies in the Mayfair 101 Group, of which Mr Mawhinney was also the director, made statements that were false, misleading or deceptive in advertisements for its debenture products.
ASIC never made enquiries into the background of certain people associated with Mayfair it seems