John Hempton is a short-seller and long term associate of Karen Chester's. On 27 November 2019 he emailed Ms Chester speculating that Mayfair 101 was a fraudulent operation. Within 24 hours and with no investigation, ASIC had prepared a public warning notice. | Media.com

Short-seller John Hempton’s ASIC links in focus in Mayfair 101 court case

Mr Hempton isn't currently the subject to Mayfair 101 litigation, however this article has correctly identified the fact that his actions prompted Karen Chester, ASIC's deputy commissioner and other senior ASIC staff, to act on his self-professed speculative views.

The Australian

Mayfair 101

Public

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Short-seller’s ASIC links in focus in Mayfair case

The short-seller

Response

A few examples of Mr Hempton's choice of words for other unrelated businesses. The similarities between this and the allegations made by ASIC against Mayfair are uncanny.

Post

This is the same person Karen Chester invited in to train several hundred ASIC staff on how to spot fraud. Another great decision, Karen.

John Hempton publicly declaring on Twitter that he referred Mayfair to ASIC.

At the time he did this Platinum Asset Management (his former employer) was experiencing an outflow of funds and they had taken issue with Mayfair's subsidiary brand name Mayfair Platinum.

On 26 Nov 2019 John Hempton associates, journalist Jonathan Shapiro and Dominic McCormick, sat next to each other in the back row at Mayfair's Sydney event.

Days later Shapiro publishes this - <a href="https://shorturl.at/klKXY" target="_blank">https://shorturl.at/klKXY</a> And then McCormick publishes this - <a href="https://shorturl.at/bzMX3" target="_blank">https://shorturl.at/bzMX3</a>

Both mischaracterise Mayfair 101's business. This was the beginning of the attack on Mayfair.

24hrs later Hempton writes to Karen Chester saying his "spidey-sense is going off badly" about Mayfair.

Coincidence?

people such as a retired farmer in regional Victoria could be considered “wholesale” and therefore privy to fewer consumer protections.

Mr Hempton said on Twitter that his Father-in-Law was based in Mildura. Was the 'true-to-label' campaign actually about protecting the interests of Mr Hempton and his family members at the expense of Mayfair's 570 clients?

The corporate regulator has urged risk bosses to knock down their chief executive’s door and ask for more funding to rescue decaying data systems.

Australian Financial Review

ASIC urges risk executives: demand more cash

ASIC issues proceeding VID524/2020 to apply to wind up M101 Nominees Pty Ltd. Obtains interim fundraising injunctions, asset freezing orders and international travel ban against Mr Mawhinney. ASIC told the Federal Court that Mayfair 101's Australian Property Bonds product was a third Ponzi scheme the group was engaged in. The property bonds were a first-registered mortgage product designed to refinance the bridging financier whose facility was in default due to ASIC's actions.&nbsp; &nbsp;

ASIC tells Federal Court Mayfair 101 was a Ponzi scheme

The Federal Court grants ASIC injunctions freezing Mayfair 101's promotion of its notes. This triggers liquidity issues, causing various financing arrangements to default. Lender replacement is a fundamental characteristic of any business that uses debt to finance its growth during the growth phase, which was the phase Mayfair 101 was in.&nbsp; &nbsp;

Mayfair's business is ceased

ASIC changes its strategy due to the injunction and issues proceeding VID228/2020 alleging misleading or deceptive advertising of the M+ and M Core notes.&nbsp;

ASIC issues Federal Court proceedings for misleading or deceptive conduct

Justice Beech orders injunction against publication of the notice, requiring ASIC to give Mayfair 101 48 hours notice prior to publishing any future notice.&nbsp; &nbsp;

Federal Court blocks the notice

Mayfair applies for a Federal Court injunction to stop publication of the notice.&nbsp; &nbsp;

Mayfair applies to block the notice

John Hempton is a short-seller and long term associate of Karen Chester's. On 27 November 2019 he emailed Ms Chester speculating that Mayfair 101 was a fraudulent operation. Within 24 hours and with no investigation, ASIC had prepared a public warning notice.