Karen Chester is the former deputy commissioner of ASIC. Mayfair 101 has come to learn that Ms Chester directed the campaign against Mayfair 101 despite enforcement not being her responsibility. In February 2024 The Australian published an article confirming she has been reported to the National Anti-Corruption Commission. | Media.com

ASIC secures 20-year ban for Mayfair 101 director James Mawhinney from fundraising and promoting investment products

This ban was overturned on appeal. The case has been remitted to be re-heard at a trial commencing 21 October 2024

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we’ve had him in for some training to spot fake cash and fraud

Quite unbelievable that ASIC has done this.

The famed short-seller has in recent months conducted two training sessions for ASIC staff.

Australian Financial Review

Hempton schooling ASIC on spotting frauds

National anti-corruption investigators have taken legal advice over one of the corporate regulator’s top commissioners, with the public watchdog considering a probe after a complaint over potential issues related to her time at the top.

Ms Chester directed the campaign against Mayfair 101.

Documents released under Freedom of Information reveal the NACC was considering a complaint against former ASIC deputy chair Karen Chester in November last year.

The Australian

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Watchdog eyes ex-ASIC chief

ASIC deputy told chairman she could have ‘destroyed’ him

Just 10 days later when Justice Anderson handed down a 20-year fundraising ban to Mr Mawhinney (which was overturned on appeal) Ms Chester made a serious of defamatory comments in an ASIC media release, including telling the public ASIC had done its job because Mr Mawhinney had lost investors $211 million when this statement was false (no losses had been incurred).

Karen Chester raised allegations about her boss James Shipton in a private meeting, then asked him to lobby business figures to help her get his job.

ASIC deputy chairman Karen Chester has hailed the Federal Court ruling that fixed income outfit Mayfair 101 engaged in deceptive and misleading marketing as a “timely comprehensive win”.

The case was undefended at trial. It was not a comprehensive win as ASIC's opponent was not represented in court. For the first time there will be a contested hearing of the allegations made by ASIC in October 2024. ASIC and Ms Chester should retract this statement.

ASIC deputy chairman Karen Chester says fund managers have been put on notice after fixed income promoter Mayfair Platinum’s marketing was judged to be misleading.

Mayfair deception a ‘wake-up call’: ASIC

<h3>Karen Chester and Mayfair 101</h3>Mayfair 101 has come to learn that Karen Chester led ASIC's attack on Mayfair 101.&nbsp;The facts we know are:<ul><li>Ms Chester was referred to the National Anti-Corruption commission according to <a href="https://www.theaustralian.com.au/nation/politics/nacc-watchdog-eyes-former-asic-deputy-chief-karen-chester/news-story/4477af27775763584cae34b48dfe98f2">The Australian</a></li><li>Ms Chester was a Deputy Commissioner of ASIC at the time (she finished at ASIC in January 2024)</li><li>Mr Chester lost out on the top job at the Productivity Commission prior to joining ASIC</li><li>Ms Chester was vocal about her desire to become Chairperson of ASIC</li><li>Despite enforcement not being Ms Chester's responsibility, she directed ASIC's campaign against Mayfair 101</li><li>Ms Chester is a long-term associate of John Hempton, a short-seller who was licensed by ASIC</li><li>Ms Chester and Mr Hempton exchanged a large volume of text messages on an encrypted text messaging service during her time at ASIC</li><li>Mr Hempton wrote directly to Ms Chester, by-passing normal complaint handling processes</li><li>Internal sources at ASIC were surprised at the speed with which ASIC acted against Mayfair</li><li>Ms Chester acted on Mr Hempton's email&nbsp;</li><li>Ms Chester was vocal about ASIC's success against Mayfair 101 and Mr Mawhinney</li><li>Certain statements made by Ms Chester about Mayfair 101 are false, misleading and defamatory, including that investors had lost $211 million and that the cause of the “egregious” harm was Mr Mawhinney</li><li>Ms Chester led the ‘true-to-label’ campaign</li><li>Ms Chester told the public Mayfair was part of that campaign, yet ASIC's action against Mayfair commenced months prior&nbsp;</li><li>The first ever <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-107mr-asic-warns-consumers-investment-advertising-is-not-always-true-to-label/">media statement</a> from ASIC about the campaign was on 7 May 2020</li><li>ASIC started its campaign against Mayfair 101 in November 2019</li></ul>&nbsp;

Basic info

Basic

The front page of The Australian reports that Ms Chester has been reported to the National Anti-Corruption Commission and they have taken legal advice with respect to the referral. It is unclear if an investigation is yet to be opened however it is understood the complaint has been with the NACC well past their normal period for rejecting complaints.

Karen Chester referred to National Anti-Corruption Commission

Reporting in The Australian reveals that Ms Chester led ASIC's attack on Mayfair despite enforcement not being her responsibility.

Extent of Ms Chester's involvement in Mayfair revealed

The statements were made following the judgment of Justice Anderson and included "These are large investor losses, approximately $211 million" (yet no losses have been declared by any Mayfair client or liquidator), and “The responsibility for the losses and the egregious harm to investors is, as the judgment makes clear, all down to the contumelious actions of Mr Mawhinney” (yet every dollar was accounted for and all clients were paid on time and in full at the time ASIC acted).

Karen Chester makes false statements about Mr Mawhinney

This was the first ever investigation opened into Mayfair 101 by ASIC. Their investigation comprised of: not interviewing Mayfair 101's Managing Director not interviewing any staff not asking for financial statements not asking for a list of assets not asking for business plans or financial models not visiting Mayfair 101's offices (which were 200m up the road from their Melbourne office)

ASIC opens an investigation into Mayfair 101

12e41449-9245-431d-8f3e-3222533896d5.pdf

The email contains speculative allegations of fraud. The email is forwarded to Rhys Bollen at ASIC who drafts a Public Warning Notice within 12 hours of receiving the email. No investigation into the allegations is undertaken or is opened by ASIC.

Karen Chester receives email from John Hempton

Karen Chester is the former deputy commissioner of ASIC. Mayfair 101 has come to learn that Ms Chester directed the campaign against Mayfair 101 despite enforcement not being her responsibility. In February 2024 The Australian published an article confirming she has been reported to the National Anti-Corruption Commission.