The corporate regulator has commenced civil proceedings in the Federal Court against a former AMP adviser along with related entities.
The proceedings are against former AMP adviser Mustafa Mohammed, Mahek Mustafa, Mubashir Mohammed, MyWealth Manager Financial Services Pty Ltd (trading as MyWealth Manager), MyWealth Protection Pty Ltd, 3M Financial Planning Pty Ltd (trading as MCube Planners) and Secure Investments Pty Ltd, ASIC said in a statement.
Mr Mohammed was an authorised representative of AMP from October 2013 to March 2017.
ASIC said it is seeking declarations from the Federal Court that the defendants have contravened the Corporations Act by operating an unregistered managed investment scheme called ‘MyWealth Manager’.
It is also alleging that the scheme should have been registered and that the defendants operated the scheme without holding an Australian Financial Services Licence.
On 21 November 2019, ASIC obtained interim orders in relation to the defendants, including orders:
ASIC also alleged that Mustafa Mohammed operated MyWealth Manager from February 2017 and targeted consumers from certain ethnic and cultural backgrounds.
Further, it alleged the scheme has raised approximately $7 million from more than 55 investors where investors were encouraged to roll over their externally managed superannuation into newly created self-managed superannuation funds and then invest the SMSF money, by way of a loan, in MyWealth Manager.
Finally, ASIC alleged that the defendants used investor funds for their own personal use, including substantial payments to friends and family members and the promotion of cryptocurrency.
The corporate regulator’s investigation is continuing, and the hearing has been adjourned to a date to be fixed after 5 December 2019.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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