The corporate regulator alleges Mustafa Mohammed had operated the scheme, called My Wealth Manager, since early 2017. 

My Wealth Manager targeted consumers from specific ethnic and cultural backgrounds, encouraging investors to roll their money from APRA-regulated funds into an SMSF and invest the funds in My Wealth Manager by way of a loan.

The corporate regulator alleges the defendants then used the over $7 million in super assets gained from My Wealth Manager customers for personal use, including substantial payments to friends and family and the promotion of cryptocurrency.

Mustafa Mohammed had been an authorised representative of AMP from October 2013 to March 2017.

ASIC obtained interim orders from the court on 21 November to the effect that Deloitte would be appointed as receivers and managers of My Wealth Manager and another of Mohammed’s associated businesses, 3M Financial Planning.

In addition, the defendants in the case would have their assets restrained; be restricted from carrying on a financial services business; be restricted from managing, controlling or directing the unregistered managed investment scheme and from receiving investor funds associated with the scheme.

The hearing has been adjourned to a date to be fixed after 5 December.