James Mawhinney sues ASIC for defamation

On 15 September, ASIC issued a media release regarding the Full Federal Court’s decision to overturn a 20-year ban against Mr Mawhinney in which it said that almost 500 investors were still owed a total of approximately $211 million.

Mr Mawhinney is alleging to the court that ASIC’s media release, which he said was drafted with the help of Ms Court, conveyed imputations that he:

1. Knowingly misled the public by marketing high-risk products as low risk and thereby caused 500 investors in the Mayfair 101 group to lose approximately $211 million.
2. By reason of his serious misconduct in advertising investments, receiving or soliciting funds and misleading marketing, caused 500 investors in the Mayfair 101 group to lose approximately $211 million.
3. By reason of his serious misconduct in advertising investments, receiving or soliciting funds and misleading marketing, caused so much harm to investors in Mayfair 101, that, unless restrained by injunctions of the court while proceedings continue, he will cause further harm to investors.

Mr Mawhinney is also seeking claims for damages and aggravated damages arising from his reputation allegedly being “seriously injured” as well as “distress and embarrassment” arising from the aforementioned article.

On 12 October, the corporate regulator amended the media release on its website, noting that Mr Mawhinney “denied any wrongdoing concerning his direction of the Mayfair 101 Group and the matter has been remitted for a rehearing”.

Last week, Mr Mawhinney filed an application for special leave to the High Court claiming that ASIC’s right to re-litigate the case against him is a “further denial of procedural fairness”.