‘BROUGHT TO THEIR KNEES’
Company behind $1.5bn Dunk Is plan launches scathing attack
THE company behind a failed $1.5bn proposal to transform a Cassowary Coast area into a tourism mecca has refuted allegations it transferred shares to an overseas firm to the detriment of investors, saying the “damnation” destroyed lives.
“All three parties including the court have publicly damned me and have brought our business and over 570 innocent Australian investors to their knees,” Mayfair founder James Mawhinney said.
The embattled firm via a group of its investment entities, including IPO Wealth Fund, had proposed to redevelop Dunk Island and Mission Beach. However, it was jeopardised after the Australian Securities and Investments Commission placed it in provisional liquidation and won freezing orders against Mr Mawhinney.
One month later, the Victorian Supreme Court ordered IPO Wealth unit to be wound up after hearing allegations it operated like a Ponzi scheme.
On Monday, Mayfair stated it had published a “scathing” 76page response, including bank statements, to Vasco Trustees Limited, the trustee of the IPO Wealth, and liquidators Dye & Co after it was alleged in a report last month that investors’ shares were moved to British Virgin Islands firm under Mr Mawhinney’s control.
“The group was brought into disrepute with allegations that Mr Mawhinney had made off to the British Virgin Islands with Accloud shares to the detriment of IPO Wealth’s investors,” the statement reads.
Accloud is the group’s largest investment in technology.
The company said its publication highlighted the controversial nature of the court case and “attack” on the group.
“(It) has consequently destroyed the investments and lives of IPO Wealth’s 181 investors while placing in serious jeopardy the return of capital to the group’s remaining 390 investors,” it alleged.
The company said Mr Mawhinney followed the trustee’s direction to sell the group’s shareholding in Accloud to 101 Investments Limited in exchange for cash payment to boost the liquidity of IPO Wealth. He also contributed more than 8.4 million Accloud shares owned by his companies outside of IPO Wealth. A net gain of more than $9m was generated for IPO Wealth Holdings from those investments in FY2020.
Cairns man Bruce Golightly, 55, who sunk $1m of his life savings into a Mayfair 101 investment product and is facing financial ruin, said he hoped the truth would get exposed. “The whole thing is an absolutely ironic situation involving the people protecting us,” he said. “More and more will come to light as time goes by,” he said.
Dye & Co, Vasco and ASIC were contacted for comment.