By Noel Towell and Kishor Napier-Raman
The tangled matter of the Australian Securities and Investment Commission against James Mawhinney took another twist on Tuesday when the former Mayfair 101 investment group boss was arrested and appeared in court accused by the regulator of dishonest conduct.
Now it wouldn’t be controversial to say that Mawhinney, who first came to public attention with a scheme to develop North Queensland’s Dunk Island – later bought by Annie Cannon-Brookes, then wife of Atlassian billionaire Mike Cannon-Brookes – into a tourist Mecca, has some history with the Australian Securities and Investments Commission.
James Mawhinney leaving the Melbourne Magistrates Court on Tuesday. Credit: Louis Trerise
Mayfair entities were fined $22 million in 2021 “for making false or misleading representations to investors”, who tipped $126 million into the firm’s fixed-income funds.
A 20-year ban on Mawhinney receiving or soliciting funds in connection with financial products, advertising, promoting or marketing financial products was overturned on appeal.
Mawhinney, for his part, is suing ASIC for defamation over the public utterances of senior officials in their pursuit of Mayfair and the ever-newsworthy businessman made it clear on Tuesday that he would be fighting the new charges.
This latest court appearance concerns allegations by ASIC that Mawhinney claimed repeatedly in 2019 and 2020 that his IPO Wealth Group owned two Italian companies when it did not. Prosecutors hit the businessman with four charges of dishonest conduct – each of which carries a maximum penalty of 15 years in the clink.
Mawhinney was granted conditional bail on the condition he does not stray beyond this nation’s borders and is due back in court in June.
Mayfair issued a statement later on Tuesday, with James noting that he was not discussing the case publicly on legal advice – but helpfully pointed us towards the words of his barrister, Robert Richter KC, to the court.
“We expect to defeat these charges, and then we will consider bringing a case for malicious prosecution,” Richter said.
“Further, we want to put it on record that there is no harm alleged by the charges.”
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