“ASX Wolf” agrees to temporarily stop providing “stock tips” business
In late 2021, Tyson Scholz consented to a Federal Court order, sought by ASIC, restraining him from promoting or providing stock tips in exchange for money, and from receiving customer funds, until further notice, while ASIC court action against him proceeds.
The ASIC action, and the investigation and AFP raids that sat behind it, demonstrate ASIC’s focus on ‘finfluencers’ and the intersection between social media and financial services and investing, and its willingness to take high impact investigative and court action in this space.
Mr Scholz, the self-styled “ASX Wolf”, rose to fame via his lavish Gold Coast lifestyle, including showing off luxury yachts and sportscars like Lamborghinis and Ferraris on social media including Facebook, Twitter and Instagram.
ASIC obtained the Court order as part of broader proceedings brought against Mr Scholz last year for allegedly operating an unlicensed financial services business in breach of the Corporations Act 2001. Mr Scholz ran sharemarket trading seminars and courses, as well as a private online chatroom on Discord that cost around $1,000 to join.
ASIC alleged that in doing so Mr Scholz provided “recommendations or statements of opinions about the purchase of shares, in return for payments of money or other benefits”.
But in consenting to the order, Mr Scholz made no admission of any wrongdoing.
The Court proceedings brought by ASIC came in the weeks after search warrants were executed by the Australian Federal Police against several entities, including corporate advisory firm EverBlu Capital and listed medical cannabis company Creso Pharma. Adam Blumenthal is Chairman of EverBlu and, until recently, was Chairman of Creso. Mr Blumental stepped aside to distance Creso’s operations and governance from the ASIC investigation.
It was reported that the AFP “raids” may have been in connection with EverBlu paying “finfluencers” stock and options to promote listed companies in which EverBlu held advisory roles, raising concerns around conflicts of interest.
The ASIC proceedings against Mr Scholz have been set down for a first case management hearing on 25 February 2022, with ASIC to file its Concise Statement on or before that date. ASIC is also required to file further court documents prior to that hearing.
ASIC’s media release regarding the proceedings, and the consent orders, can be found here: https://asic.gov.au/about-asic/news-centre/find-a-media-release/2021-releases/21-345mr-asic-seeks-orders-restraining-tyson-scholz-from-carrying-on-financial-services-without-a-licence/
The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such. It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only. You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.
