ASIC announced that the federal court has given a permanent order preventing social media influencer Tyson Robert Scholz, who is also known as ASX Wolf, from taking part in any activities.
The court has officially prohibited Scholz from doing any type of financial services in Australia. He used to offer trading courses and workshops regarding ASX-listed stocks. And he also had 20,000 followers on private online forums and Instagram whom he would give stock trading advice to.
To entice people to join his seminars, he posted pictures of expensive cars with the license plate “ASX Bull” and luxurious boats.
The court has ordered Scholz not to allow people to join any online groups which he charges money for, and where members communicate about stock trading without an Australian Financial Services Licence (AFS). He is not allowed to do any financial services business in Australia.
In December 2021, ASIC took legal action against Scholz, asking the court to stop him from carrying out any financial activities in Australia. The court agreed to a temporary order and in October 2022, ASIC asked for it to be made permanent.
ASIC Deputy Chair, Sarah Court, said:
Financial services laws exist for the protection of investors. ASIC sought permanent injunctions in this case because the people who paid Mr Scholz to access private online forums where he made recommendations about shares, as well as those people who purchased shares based on these recommendations, did not have the benefit of these protections.
Anyone who recommends financial products or provides financial advice on social media must ensure they are complying with the law and may face ASIC enforcement action when they are not.
Read more: Sophie Hutcherson Joins FCA Board | Brokers Times
