The Australian Securities and Investments Commission (ASIC) has disqualified former Magnolia Capital Group director Mitchell Atkins from managing the company for five years and banned him from providing financial services and engaging in credit activities for 10 years.。

Magnolia Capital Group collapses in 2022, defaulting millions to unsecured creditors。The Group operated from 2018 to 2022 and provided financial advice and services to investors in relation to secured lending transactions and equity investments.。

Atkins is a director of all companies in the Magnolia Capital Group, 13 of which have filed liquidator reports with ASIC stating that the companies were unable to pay unsecured creditors more than 50 cents per dollar.。

From 19 September 2018 to 7 October 2022, Atkins was the authorized representative of Guildfords Fund Management Pty Ltd, an Australian financial services licensee.。

ASIC's findings include, Atkins:

• as a director who fails to act in good faith, puts investors' funds at risk, lacks honesty and integrity, creates false documents, mixes investors' funds together, lacks competence, professionalism and financial management, and should therefore be disqualified from managing the company in the public interest;
• He is not a fit and proper person to provide financial services because he is not authorized by Guildfords to operate financial products, makes misleading and deceptive statements about investors' investments, and dishonestly withholds funds due to investors;
• He is not a suitable person to engage in credit activities for reasons including his failure to receive training, his failure to deal with complaints from investors and his failure to respond to requests from Guildfords.。

Liquidators at Magnolia Capital Group reported a shortfall for creditors of between $40 million and $50 million.。

On March 2, 2023, Atkins was declared bankrupt.。In June 2023, the Australian Securities and Investments Commission obtained an order from the Federal Court of Australia restricting Atkins from leaving Australia for six months.。