Income Direct group enters administration with up to $70 million raised from investors

Income Direct Australia Pty Ltd, Settlement Holdings Pty Ltd and ID Client Facilities Pty Ltd have entered voluntary administration, with Nicholas Charlwood and Timothy Cook of Balance Insolvency appointed administrators on 6 August 2026.

The appointments affect companies associated with Marbanc International and potentially hundreds of investors who participated in debt fundraising managed by the group. Income Direct is reported to have raised between approximately $55 million and $70 million from about 200 investors, including self-managed superannuation funds.

The appointments follow months of disruption to Income Direct’s banking arrangements. The company said earlier this year that it had stopped accepting new clients after restrictions on banking facilities affected its ability to transact with counterparties through Australian financial institutions. Income Direct said it commenced proceedings against Westpac in December 2025 and maintained that it continued to own assets and investments while seeking to restore normal banking arrangements.

According to AFR, Income Direct raised money using bills of exchange and that a significant portion of the funds was invested in Media.com, a US-domiciled business that lists James Mawhinney as chief executive. The administrators are investigating the relationship between the entities and the ultimate deployment of investor funds.

Mawhinney is not identified as a director or shareholder of Income Direct. The company is owned by Suraj Gerard Sivaprasad and is part of the Marbanc group. Settlement Holdings and ID Client Facilities are also associated with Marbanc.

The connection to Mawhinney is significant because of his previous involvement with the failed Mayfair 101 investment group, which collapsed owing approximately $211 million owed to investors following the failure of the group’s investment products.

In September 2025, the Federal Court imposed injunctions restraining Mawhinney for a further 15 years from receiving or soliciting funds in connection with financial products and from advertising, promoting or marketing financial products. Justice Button found an unacceptable risk that Mawhinney would otherwise operate a financial services business in a financially reckless manner that exposed investors to significant losses. Mawhinney has appealed the decision.

The restrictions followed the Court’s finding in July 2025 that Mawhinney was involved in or associated with multiple contraventions by Mayfair 101 companies. Earlier proceedings resulted in four Mayfair entities being ordered to pay a combined $30 million in penalties for misleading or deceptive advertising of investment products.

The administrators are urgently assessing the financial position of each company and investigating potential recapitalisation options. They have not yet disclosed the companies’ assets, liabilities or anticipated recoveries for creditors.