Creditors of LGL Commodities might have a right of action against solicitors for the company’s liquidators for failing to comply with court orders and omitting evidence in a case against a former director, a judge has ruled.
A judge has ordered 17 companies connected to Mayfair’s “failed” IPO Wealth Fund to be wound up after finding the fund’s director put investor money at risk through “highly speculative” investments to make a windfall for himself.
Companies associated with Mayfair’s IPO Wealth Fund should be wound up because they contained assets “artificially inflated” in value and ran what was effectively a Ponzi scheme, the Victoria Supreme Court has heard.
Mayfair director James Mawhinney has been blocked from talking to investors ahead of a hearing on an application to wind up the IPO Wealth fund, after a judge raised concerns about investors being “misled and coerced” by the investment hotshot.