The Federal Court found that Mayfair made false or misleading statements by representing that its products were comparable and of similar risk profile to bank term deposits, that principal investment would be repaid in full on maturity when investors might not receive capital payments on maturity – or at all – and that its debenture products were designed for investors seeking “certainty and confidence” when there was risk that they could lose some or all of their principal investment.
“ASIC’s success in Court today demonstrates firms need to do the right thing by their investors, even when they are wholesale investors. They need to make sure they accurately describe their products when advertising,” said ASIC deputy chair Karen Chester.
“The Court has shown that Mayfair 101 engaged in misleading and deceptive conduct by claiming its products were comparable to bank term deposits, when they were not.”
The Federal Court also found that the M Core Fixed Income Notes were not fully secured as funds invested could be lent to a related party, used to pay deposits on properties prior to any security interest being registered, and used to purchase assets that were not secured by first-ranking, unencumbered asset security.
ASIC is seeking pecuniary penalties. A penalty hearing is yet to be listed by the court.
ASIC wins theirs in Federal Court but $1m investor Stuart Klees loses his “mislead” case in NSW Supreme Court against Mayfair 101. Should have waited for ASIC. Hate to be his lawyers…
so where are the principals behind Mayfair, what penalties have they received and will they pop up somewhere else down the line as a Mayfair#2?
So one of the victims put $500k into an investment that he knew nothing about?
Pauline Hanson’s One Nation put $500k into an investment and refused to comment on why or whether they will be paid back.
One could say “a fool and their money”.. but I prefer “please explain”
Well done, ASIC.
The Court decision shows that action to stop Mayfair should have been instigated a lot earlier. Mayfair were placing two full page adverts in all the major newspapers around Australia which obviously enticed investors , mums and dads to invest after reading the adverts. Surely ASIC surveillance would also be aware from the initial adverts? What has been the loss to investors?
This is great news. With this victory under their wings for misleading advertising I’m sure ASIC with now address the misleading and deceptive advertising of their union fund buddies. We have only been waiting 10 years for something to be done here.
Totally agree with your statement but also as you probably do too, are aware that pigs don’t fly.
ASIC is corrupt and will never go against the union funds.
Well done ASIC on proving the most obvious and egregious breach of disclosure. Pity action wasn’t taken when Mayfair first started to run full page ads in newspapers and continued to do so for months on end.