Recent fraudulent practices from the SMSF scheme My Wealth Manager Financial Services have led the Federal Court to issue further orders to company leaders Mubashir Mohammed, Mahek Mustafa, and Mustafa Mohammed, who apparently have all have left the country, despite previous orders demanding that they stay in Australia. The court ordered on December 13th, 2019 that all data related to the scheme, including property, be handed to the receivers.
On November 21st, the Australian Securities and Investments Commission (ASIC) nominated Deloitte as receivers of My Wealth Manager and 3M Financial Planning. However, the court stated that the appointed receivers experienced considerable challenges in obtaining data. ASIC also attempted to appoint receivers to My Wealth Protection and Secure Investments, which are linked to My Wealth Manager, but the court deemed that not enough information was found to determine any possible connection to the scheme.
In a statement released on December 4th, ASIC said it requested an official Federal Court declaration stating that the three company leaders were in violation of the Corporations Act by running an investment scheme that was not officially registered. Furthermore, the ASIC reported that over $8 million in superannuation assets from over 50 clients were obtained by the defendants, who used them for personal interest. They achieved this by convincing customers to divert their APRA-regulated superannuation funds into an SMSF.
According to the court, there is no indication that any of the suspects – who are all Indian citizens – will return to Australia.