ASX Wolf Tyson Scholz found to have breached financial laws by Federal Court

Flashy Gold Coast finfluencer Tyson Scholz’s Instagram posts promoting stocks and seminars spruiked via chats were financial services for which he had no licence, a court has ruled.

Gold Coaster Tyson Scholz was found by the Federal Court to have breached financial laws for giving advice without a licence. Picture: Adam Head

Share trader Tyson “ASX Wolf” Scholz has been found to have breached laws by offering share tips and advice on social media without an Australian financial services licence.

The Federal Court in Brisbane accepted key arguments from the corporate regulator that the Lamborghini-driving Mr Schulz use of Instagram, Discord and seminars between March 2020 and November 2021 circumvent existing laws.

ASIC alleged that the Gold Coast resident had delivered training courses, promoted them and made share purchase recommendations on social media without a licence.

Mr Scholz, who went by @ASXWOLF_TS online, had over 20,000 followers and would additionally post about flashy sports cars, speedboats, private jets and other luxury status symbols.

The Federal Court has found that Tyson Scholz gave financial advice without a licence.

The case was the regulator’s first major action against so called “finfluencers” — people using social to peddle financial advice without having the required qualifications to do so.

ASIC said that Mr Scholz has been charging subscribers membership fees of $500, $1000 or $1500 for three levels of training courses. He was also offering one-off share tips for a fee, and also access to a private chat site called “Black Wolf Pit” on the communications platform Discord.

Tyson Scholz with partner Sophie Lee Anderson, had a big following on social media. Picture: Instagram

In considering whether Scholz gave financial product advice Federal Court Justice Kylie Downes noted his Instagram account, which ASIC argued was one of the mechanisms he used.

“Contrary to the submission by Mr Scholz, the posting of such stories by him in his guise as the ASX Wolf, in the context of the other posts on the Instagram account and having regard to the content of these stories, constituted a recommendation or expression of a statement of opinion within the meaning s 766B (1) Corporations Act,” the judgment reads.

Instagram posts by Tyson Scholz and partner Sophie Lee Anderson showing off the lavish lifestyle on the Gold Coast and around the world. Picture: Instagram

“That is because, through his lifestyle posts and “life story” posts on the Instagram account, Mr Scholz had established a reputation as a successful share trader who had the ability to identify worthwhile companies in which an investment should be made.

“It did not matter that the stories did not contain any overt recommendation to acquire the shares: it was enough that Mr Scholz referred to a company or its shares in the stories, which was usually done in a way which indicated that he liked that company

Justice Downes added that the activities conducted using particular branding and marks associated with the ASX Wolf, cultivated an image of a successful share trader (including through lifestyle and sponsored posts on the Instagram account).

Queensland Police towed a Lamborghini that belonged to Mr Scholz last year in relation to speeding.

ASIC deputy chair Sarah Court said more finfluencers would be the subject of enforcement action if they offered financial advice without being qualified.

“Financial services laws exist to protect investors if something goes wrong,” she said.

“The individuals who paid Mr Scholz for his tips, to attend seminars or access private online forums, as well as those individuals who purchased shares based on his recommendations or statements of opinion, did not have the benefit of these protections.”

Fast boats were a regular appearance on Scholz’s Instagram. Picture: Instagram

The corporate regulator is seeking that Mr Scholz be prohibited from promoting or carrying on the business of providing recommendations in return for payments of money or other benefits, directly or indirectly carrying on any financial services business in Australia, and receive, soliciting, transferring or disposing of customer funds received in connection to providing recommendations or opinions about the purchase of shares.

The matter will be listed for a case management hearing on January 31 to progress to a further hearing to determine remaining issues including any orders restraining Mr Scholz from carrying on a financial services business without a licence.

Originally published as ASX Wolf Tyson Scholz found to have breached financial laws by Federal Court