ASIC Probes Private Equity Firm for Allegedly Gambling with Investor Funds
Summary
Australia’s corporate regulator, the Australian Securities & Investments Commission (ASIC), is investigating First Mutual Private Equity after it reportedly raised about $53 million from investors between March 2024 and July 2025. The Federal Court extended asset preservation orders on 15 August, freezing bank accounts belonging to First Mutual and its director Gregory Cotton while ASIC probes where the money went. So far ASIC has found no evidence the funds were invested as claimed; investigators suspect a significant portion was lost to high‑stakes gambling. Cotton must file a detailed affidavit by 25 September disclosing assets, liabilities and client relationships, and can withdraw up to $800 a week for living expenses. ASIC is widening the inquiry to transactions before March 2024; it has not disclosed whether losses occurred at casinos or online, and it is unclear if investors will be reimbursed.
Key Points
- First Mutual Private Equity allegedly raised about $53 million from investors (Mar 2024–Jul 2025).
- ASIC reports no trace of the funds being used for legitimate investments.
- The Federal Court extended asset preservation orders on 15 August, freezing accounts of the firm and director Gregory Cotton.
- Investigators suspect much of the money was lost through high‑stakes gambling; platform/location not disclosed.
- Cotton must file an affidavit by 25 September detailing assets, liabilities, income and client ties; limited weekly withdrawals and legal fee access allowed under court terms.
- ASIC is expanding the probe to include transactions prior to March 2024, suggesting potential earlier misconduct.
Why should I read this?
Short version: this is a big red flag for anyone who invests with private funds. If millions allegedly vanished into gambling rather than deals, it matters for investor protections, regulator muscle and market confidence — and you’ll want to know how the court is trying to stop further losses.
Author style
Punchy: this isn’t minor — a regulator is chasing $53m and freezing accounts. Read the details if you care about investor safety or regulatory action; we’ve cut through the noise so you get the essentials fast.