ASIC secures extension of Court order against former Magnolia Capital director Mitchell Atkins
The Federal Court has extended interim travel restraint orders previously obtained by the Australian Securities and Investments Commission (ASIC) against Mitchell Atkins, an undischarged bankrupt and former director of private lending firm Magnolia Capital.
The initial ex parte orders made by the Court on 19 June 2023 prohibited Mr Atkins from leaving Australia without the consent of the Court and required him to surrender to the Sydney Registry of the Court all passports held by him and any airline tickets for travel outside Australia until further order.
On 26 June 2023, the Court ordered that the interim orders remain in place until further order of the Court.
The orders were sought as part of ASIC’s investigation into Mr Atkins and companies in the Magnolia Group. ASIC’s preliminary investigation into the failure of the Magnolia Group indicate that it operated a private lending business sourcing capital from private investors and that approximately $40 million in investor losses are presently unaccounted for.
ASIC’s investigation is continuing.
The matter will next appear before the Court for a final hearing on 11 August 2023.
Mitchell Atkins was sole director of a group of companies trading as Magnolia Group, comprising a large number of corporate entities, many of which were placed into liquidation between August 2022 and May 2023.
Mr Atkins and the business operated by the Magnolia Group included an authority to operate as an authorised representative of Guildfords Funds Management Pty Ltd.