ASIC-backed court order puts First Mutual private equity scheme into liquidation

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ASIC liquidates First Mutual scheme

Highlights

Federal Court orders First Mutual Private Equity Pty Ltd and its unregistered managed investment scheme to be wound up following ASIC’s application.
Robert Woods and Salvatore Algeri of Deloitte SRT Pty Ltd are appointed liquidators, replacing previous receivership and asset freezing orders.
ASIC’s ongoing investigation and this enforcement action reflect increasing scrutiny of unregistered managed investment schemes to protect investors and ensure asset recovery.

Court-ordered wind-up and liquidator appointments

As reported by ASIC, the Federal Court orders First Mutual Private Equity Pty Ltd and the unregistered managed investment scheme operated by the company and Gregory Raymond Cotton to be wound up following an application from the regulator.

The court appoints Robert Woods and Salvatore Algeri of Deloitte SRT Pty Ltd as liquidators to carry out the winding-up process. Their appointment replaces the earlier court-ordered receivership and asset freezing orders.

ASIC says it seeks the orders to facilitate the orderly administration of remaining assets and to identify any funds that may be available for return to investors. The liquidators now take control of First Mutual, recover available assets, assess claims and, where funds are available, distribute them to creditors and investors.

Investor protection and regulatory implications

ASIC says it decides to pursue the wind-up of First Mutual and the unregistered scheme to protect current and potential investors. The action places the matter within a formal insolvency process aimed at preserving and tracing assets while claims are reviewed.

The regulator's investigation into the affairs of First Mutual and Mr Cotton remains ongoing. The case highlights continued enforcement pressure on unregistered managed investment schemes in Australia, particularly where regulators see risks to investor funds and the need for court-supervised asset administration.

In our earlier article, we covered the Enforcement Directorate’s temporary seizure of 11 immovable properties linked to Santosh Construction and its associates as part of a money-laundering investigation in Jharkhand. The report outlined how investigators tied the case to alleged extortion/levy payments and a broader probe into proceeds of crime, including cash seizures and funds allegedly routed into property purchases. The investigation was described as ongoing, with authorities aiming to trace assets and prevent suspected proceeds from being dissipated.

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