One Nation made a $500,000 payment to a troubled investment company responsible for the stalled Dunk Island redevelopment project. 

ONE NATION has just taken a $500,000 bath.

False

Misleading

Mistaken

One Nation loses $500K to troubled investment company

The One Nation political party is in the same boat as all other M+ noteholders - redemptions of their notes is temporarily suspended but they otherwise continue to retain their face value. The statement is wrong because the company that issued them still exists, holds valuable assets and is free from administration.

Whoever decided to tip half-a-mil into an obviously extreme risky Mayfair either ignored due diligence or was swayed by factors larger than mere financial issues.

A high risk investment company puts money into cryptocurrencies, microcap stocks and other volatile asset classes. Mayfair 101 held none of these. We invested in good businesses and held a substantial portion of Australian and overseas real estate (130+ properties to be exact). This characterisation of risk is badly mistaken, particularly when you consider the level of diversification among the assets in the portfolio.

IPO and therefore Mawhinney, who owns the lot and hangs out in the Caymans, keep the change.

Defamatory

Mr Mawhinney does not hang out in the Cayman Islands. He has never been to the Cayman Islands. It does look like a nice place though...

IPO made its bucks by offering investors very attractive interest rates, several per cent over bank rates, then lending this money out to private start-ups and fringe businesses at a massive margin over borrowing cost.

Clarification

They were not fringe businesses. The group invested invested in private equity stakes in a variety of companies (28 individual private equity investments in 11 countries to be specific). Making a margin on any goods, services and capital is standard practice in the business world.

One Nation tipped half-a-mil’s worth of small donors’ hard-earned cash into a classic, built-for-mugs, too good to be true investment opportunity.

It was a good investment opportunity until the regulator attacked Mayfair 101 on a misconceived basis.