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Former Metigy CEO and co-founder David Fairfull has appeared in the Downing Centre Local Court in Sydney facing allegations that he gave false information to investors about revenue and income while also using his position as a director to gain an advantage for himself.
The Metigy group of companies developed artificial intelligence-powered marketing solutions for what the company claimed in 2020 were 26,000 small-to-medium sized enterprises worldwide, but in July 2022 it went into administration with AdNews reporting 75 jobs were lost.
It was a stark change in circumstances for a company that less than two years earlier had announced a $20 million raise in a funding round led by Cygnet Capital, which also included participation from Regal Funds Management, OC Funds, Five V Venture Capital, and Thorney.
Creative agency We Are Social, co-founded by Fairfull, was also a major investor in Metigy.
Following an investigation, the Australian Securities and Investments Commission (ASIC) alleges he provided false statements to potential investors and further used his position as a director to obtain a loan for his own personal benefit.
He has been charged with five counts of making false and misleading statements contrary to section 1041E(1) of the Corporations Act 2001, and one count of dishonestly using his position as a director to gain an advantage contrary to section 184(2) of the Corporations Act 2001.
"ASIC took this case as directors’ duties are an enduring priority for us. 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," says ASIC Deputy Chair Sarah Court.
The matter will return to the Downing Centre Local Court on 10 December 2024.
The matter is being prosecuted by the Commonwealth Office of the Director of Public Prosecutions following a referral from ASIC.
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