FCA hearing delayed

An initial interlocutory hearing at the Federal Court of Australia in Melbourne has been postponed until June 16. Fiat Chrysler Automobiles (FCA) Australia, which distributes Jeep, Chrysler, Fiat and Alfa Romeo across the Tasman, has filed documents alleging a former chief executive misused more than AU$30 million of company funds during his term in office from October 2010 to May 2013. According to court documents, the company claims Clyde Campbell “breached his fiduciary duties”, and used corporate funds “directly or indirectly” to buy a yacht, plane and overseas trips. FCA Australia also alleges vehicles intended to be given to charities were redirected to other people. It claims cars were arranged overseas for high-profile celebrities such as Shane Warne, Elizabeth Hurley and Harry Kewell through a third-party company Campbell “appears to have an interest in”. Motortrak, the third-party company, primarily supplies data services to car-dealer networks. Unrelated to the allegations over the celebrities’ cars, FCA Australia alleges the fee for Motortrak’s data services increased from AU$488,520 annually in 2011 to AU$9,169,250 by 2015, and the cost was “substantially greater than the cost for similar web services provided by Motortrak and competitors”. FCA Australia’s dealer network has increased from 59 outlets in 2010 to 184 today. But, even taking that expansion into account, the company claims the cost increased sixfold from AU$690 to AU$4,100 per dealer per month. Campbell worked for Motortrak from 2008-10 before becoming the boss of FCA Australia, according to court documents. Campbell’s lawyer, Sam Bond, has told media across the ditch that the allegations of misusing funds are “not only completely denied but considered scandalous”, and will be shown to be “wrong and embarrassing” for FCA Australia. For the first time since the claims surfaced, the company has confirmed court action was taken after a routine audit by finance experts, who visited Australia earlier this year to conduct a thorough investigation. “During a routine audit, we discovered what at best appears to be incomplete documentation pertaining to certain transactions and vendor relationships initiated or approved by Campbell during his tenure,” the company says in a statement. “As such, we are seeking all relevant information he has on these matters. We will not comment further on ongoing legal proceedings and let statements in our pleadings speak for themselves.” News Corporation Australia understands further action may be taken against other industry executives. FCA Australia’s statement of claim states “further particulars will be provided before trial” when referring to many of its claims. There is no defence yet from Campbell. The application that was adjourned was to potentially freeze assets that might have been in dispute. The statement of claim lodged also alleges Campbell’s successor, Veronica Johns, who joined the company in 1998 as an assistant to the finance director and in May 2013 became the first woman to head a car company in Australia, helped pay for house renovations using corporate funds. She said she left FCA Australia in December 2014 for “personal reasons”.