David Fairfull, the former CEO of AI marketing company Metigy, has been charged in Downing Centre Local Court for allegedly misleading investors and abusing his role as a director for personal gain, ASIC reported.
These charges come after an ASIC investigation revealed alleged false statements about the company’s revenue and the use of his position to secure a personal loan.
Fairfull faces five charges of making false and misleading statements under section 1041E(1) of the Corporations Act 2001 and one count of dishonestly using his director position to gain an advantage, breaching section 184(2) of the Act.
According to ASIC, the alleged misrepresentations occurred between 2018 and 2021, during which Metigy marketed AI-powered tools to help small to medium businesses with digital marketing.
ASIC Deputy Chair Sarah Court emphasised the importance of director integrity.
“ASIC took this case as directors’ duties are an enduring priority for us,” Court said. “Company directors play an integral role in overseeing governance in addition to both performance and compliance and as such have a responsibility to act with integrity and honesty.”
This case, referred to the Office of the Director of Public Prosecutions (Cth) by ASIC, will return to the Downing Centre Local Court on 10 December 2024.
Read the ASIC announcement here. In another news, ASIC, which recently released a draft regulatory guide on the upcoming sustainability reporting requirements, reported the dismissal of its case against Paul Ryan, a director of Dixon Advisory & Superannuation Services.
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