Australia: Court maintains freeze on equity firm and director amid ASIC probe
Gregory Cotton and First Mutual accused of receiving AU$53m with links to gambling use.
Key points:
– Federal Court extends orders freezing assets of First Mutual Private Equity and its director
– ASIC suspects investor funds were used for gambling instead of investments
– Cotton required to disclose full financial records by 25 September
The Federal Court of Australia has extended freezing orders against First Mutual Private Equity and its Director, Gregory Raymond Cotton, as part of an investigation by the Australian Securities and Investments Commission (ASIC) into the handling of investor funds.
The extension, granted by consent on 10 September, preserves court orders first made on 15 August. These include restrictions on both parties from dealing with any bank accounts, incurring new liabilities or moving funds out of Australia, until further notice.
According to ASIC, Cotton and First Mutual are believed to have received approximately AU$53m (US$34.1m) between March 2024 and July 2025, ostensibly for investment purposes. The regulator alleges that a significant portion of the money may have been used for gambling activities and that no actual investment activity has been identified to date.
Cotton has been made aware of ASIC’s concerns and is now required to submit a sworn affidavit by 25 September. This must disclose the assets, liabilities, sources of income and any debts linked to himself and to First Mutual. The company must also submit a similar statement through an authorised officer.
Good to know: The freezing orders apply to all forms of bank, building society and cryptocurrency accounts, and also prevent the disposal of any property within or outside Australia
Limited exceptions have been made, including a weekly allowance of up to AU$800 for living expenses and reasonable legal fees, provided notice and evidence are given.
ASIC’s investigation remains ongoing. The commission has stated it will update investors regarding the status of their funds once it is in a position to do so.
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