Ex-CEO accused of fraud
Fiat Chrysler Australia (FCA) has accused its former chief executive, Clyde Campbell, of misappropriating more than AU$30 million to fund his lifestyle and has claimed he fraudulently gave cars away to celebrities for free. The company has filed a lawsuit in the Federal Court alleging Campbell directly or indirectly used corporate funds to pay for a yacht that cost AU$400,000, a plane, trips to New Orleans and Rio de Janeiro, Victorian Racing Club memberships worth $244,800 and more than $380,000 in gift vouchers. It is also alleged, Fairfax reports, that Campbell provided free cars to celebrities – such as Shane Warne, Elizabeth Hurley and Harry Kewell – when they were not official ambassadors for the brand, which was in breach of company governance. FCA has confirmed to Australian media that it discovered what appeared to be “incomplete documentation pertaining to certain transactions and vendor relationships” by Campbell during his time as chief executive during a routine audit. “As such, we are seeking all relevant information he has on these matters.” According to the reports, Campbell allegedly hired digital marketing company Motortrak – a business Campbell is alleged to have previously held a senior role with – to provide “web services” for FCA, which claims more than AU$20m was paid to Motortrak since 2011. FCA also claims Motortrak invoiced the company to buy Jeeps and Chryslers for brand ambassadors Warne, Hurley and Kewell in the UK “without any evidence of written contracts” with them and despite the company having “no commercial presence” in that country. FCA is reportedly seeking compensation and a declaration by the Federal Court that Campbell breached his fiduciary duties, acted in bad faith and improperly used his position. Campbell’s lawyer Sam Bond says Campbell’s position is “the allegations in the statement of claim are not only completely denied but considered scandalous”. “We are confident the allegations will be shown to be wrong and will be embarrassing for FCA,” Bond adds. “The fact internal politics within FCA has caused it to want to tarnish the name of Campbell, who took the business to enormous levels of growth, is as unfortunate as it is unfair.” Fairfax Media has also revealed Campbell is no longer involved with Fiat Chrysler New Zealand, a private enterprise he established in partnership with Sir Neville Crichton after leaving FCA. They were equal partners in the business until May 12, 2015, when Crichton took complete control of the company as accusations against Campbell emerged. In addition to importing distributing existing Fiat Chrysler models, they announced plans to convert left-hand-drive Ram pick-ups – another Fiat Chrysler brand – and sell them in New Zealand and Australia. A statement from Crichton’s Ateco Group reads: “Fiat Chrysler NZ is now a wholly-owned subsidiary or the Ateco Group. As soon as the company became aware of the accusations, a mutually agreed settlement was reached. Campbell has no involvement and no interest in Ateco. Fiat Chrysler NZ is now operating as business as usual, as is the Ram trucks project.” Meanwhile, fresh allegations have emerged that Veronica Johns, who took over from Campbell as FCA’s chief executive in 2014, also misappropriated funds from the company, according to Fairfax. FCA has lodged further documents with the Federal Court alleging Johns used company money for home renovations, and gave cars intended for charity purposes to her husband and the owner of the company undertaking the renovations.
