The Federal Court of Australia has extended freezing orders against First Mutual Private Equity and its director Gregory Cotton, following an investigation by the Australian Securities and Investments Commission (ASIC) into suspected misuse of investor funds. ASIC alleges that approximately A$53 million received between March 2024 and July 2025 may have been used for gambling rather than legitimate investments.
The court orders prevent the company and Cotton from transferring money or taking on new liabilities while requiring detailed disclosure of all personal and corporate assets, debts, and property by 25 September. Cotton is permitted limited living expenses up to A$800 per week, and both defendants may pay legal costs with prior notice to ASIC.
ASIC has stated that it will continue to monitor the situation closely and provide updates to investors regarding the status of their funds. This case underscores the importance of regulatory oversight in sectors where financial operations intersect with gambling, highlighting the need for transparency and compliance in investment management.
For iGaming and financial markets, the First Mutual case serves as a cautionary example of the risks associated with the mismanagement of investor funds and potential gambling-related misuse. It reinforces the crucial role of regulatory bodies in protecting investors and maintaining trust in financial systems.
As investigations continue, market participants are closely watching the outcome, anticipating broader implications for fund management practices and gambling-related compliance requirements in Australia. The Federal Court’s decisive action demonstrates a clear message: financial accountability and ethical management of investor funds are non-negotiable in today’s regulatory landscape.
