Mayfair 101 Investors label actions of ASIC a ‘national disgrace’

The reopening of Dunk Island for tourism last week has enraged out-of-pocket Mayfair investors who say operation of a successful beachside restaurant they helped fund was proof of a viable business before the corporate regulator shut the operation down.

About 250 guests were invited to spend a day on Dunk Island on October 25, 2019 as part of a Mayfair 101 PR objective after it bought the derelict resort in September 2019.

The reopening of Dunk Island for tourism last week has enraged out-of-pocket Mayfair investors who say operation of a successful beachside restaurant they helped fund was proof of a viable business before the corporate regulator shut the operation down.

For the first time a group of 76 Mayfair 101 noteholders have put their names to a statement calling out court action brought by the Australian Securities and Investments Commission as “a national disgrace”.

At the heart of the statement is a view the regulator’s move to shut down James Mawhinney’s company for misleading or deceptive advertising has ruined the lives of investors, who are still collectively owed about $211m.

“We believe ASIC acted irresponsibly by failing to properly investigate prior to acting,” the statement reads.

Mayfair 101 managing director James Mawhinney at Mission Beach on May 6, 2022. Picture: Peter Carruthers

Sunshine Coast woman Nickie Kemp lost her life savings of $710,000 during the Covid lockdown period in 2020.

She said the stress of it all pushed her husband to the brink of a nervous breakdown.

“We were all locked down and we were in a caravan and our family was on the other side of the world and we could get our money out,” she said.

“We had no savings, no family, nothing and we could go back to New Zealand, it was awful.

“I know people have had heart attacks, and people have suffered dreadful mental anguish, people have had to sell their houses, and it’s completely avoidable.”

The still unresolved saga began in late 2019 when Mayfair 101 announced a $1.6 billion plan for a “tourism mecca” on the Cassowary Coast and began advertising investment packages known as Core Notes and M+ Notes.

The Mayfair 101 vision for the Dunk Island Spit which was set to include a beachside bar and cafe.

The actual new restaurant on Dunk Island which opened last week.

The plan included a revamp of Dunk Island following the acquisition of a freehold lease but the vision was sunk in August 2020 when the island was repossessed.

Despite fighting a five-year battle for a return on her investment, Ms Kemp still has faith in Mr Mawhinney.

“He is here and he is trying to get out money back. He is there and facing the music and listening to people yelling and screaming at him,” she said.

“Unless ASIC put him in prison, he will do whatever he can to get the money back.”

Cairns investor Bruce Golightly lost $1m after investment company Mayfair 101 was ordered to stop trading by ASIC. Picture: Brendan Radke

Cairns-based investor Bruce Golightly is still owed about $1m.

He said the joint statement was a way for investors to be heard.

“Its such a terrible story and sadly we have never really had a voice,” he said.

“What ASIC have done is absolutely disgraceful and the road they have gone down to cover everything up is even worse.

“James is not a conman

“He is one of our most talented entrepreneurs and is being vilified by the regulator.”

Last month ASIC secured a partial win over Mr Mawhinney in a Federal Court decision that found laws were broken when the company made false or misleading representations in the marketing of financial products.

However, contrary to ASIC‘s allegation, Mayfair didn’t claim that the products carried a similar risk profile to bank term deposits, the court heard.

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Originally published as Mayfair 101 Investors label actions of ASIC a ‘national disgrace’