Mayfair 101 James Mawhinney claims ASIC defamed him in media release

Businessman James Mawhinney has launched legal action against ASIC and its deputy chair Sarah Court, claiming the regulator defamed him in a media release.

Mayfair 101 director James Mawhinney has accused the corporate regulator of defaming him when it alleged he had “knowingly misled the public by marketing high risk products as low risk”.

In documents filed with the Federal Court, Mr Mawhinney alleged the Australian Securities and Investments Commission and its deputy chair, Sarah Court, defamed him by accusing him of causing the loss of $211m for 500 investors in Mayfair funds.

The statements at the heart of his legal pursuit were published in September 15 and include quotes from Ms Court in which she says: “ASIC took this case to protect the public from the risk of significant financial harm arising from what we believed to be serious misconduct.” “Mayfair, under Mr Mawhinney’s direction, marketed high-risk products as low risk. Almost 500 people invested in the Mayfair 101 group and they are still owed a total of approximately $211m,” Ms Court said at the time

The release was later amended to note that Mr Mawhinney had denied any wrongdoing concerning his direction of Mayfair.

The release was issued after the court overturned a two decade ban restraining him from advertising investments and raising funds from the public. It ordered that ASIC’s application for an injunction against Mr Mawhinney be sent back to the Federal Court for another hearing.

Mr Mawhinney is still not permitted to solicit for funds or advertise a financial product pending the final determination of the matter, the court said.

The amendment to ASIC’s September 15 statement came after Mr Mawhinney’s legal representatives, Roberts Gray Lawyers, sent notices of concern to the regulator on September 28.

In letters addressed to Ms Court and ASIC chair Joe Longo, Roberts Gray Lawyers managing director Rhys Roberts claimed the regulator’s statements were defamatory. “It was not our client’s actions or the actions of the Mayfair 101 group under his direction, that caused any investor losses – rather, it was the misguided and damaging actions of ASIC itself in 2020, which caused the investors to suffer significant losses that they would not otherwise have suffered,” he wrote.

Mr Roberts demanded ASIC remove the release and provide an apology and retraction “in a form to be approved by us” on the regulator’s website.

ASIC declined to comment on the matter on Monday.