Metigy ex-CEO charged with misleading investors and dishonestly using his position
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The news: Former chief executive of artificial intelligence marketing company Metigy, David Fairfull, has been charged with multiple offences following an investigation by the corporate regulator into alleged false statements to investors and misuse of his position as a director.
The numbers: Fairfull faces five counts of making false and misleading statements and one count of dishonestly using his position as a director.
The alleged offences occurred between 2018 and 2021 when Metigy was developing AI-powered marketing software for small to medium businesses.
The company had attracted high-profile investors including Five V Capital and Thorney Investment Group, raising over $20 million in what appeared to be one of Australia's fastest-growing startups before its collapse.
The context: The Australian Securities and Investments Commission (ASIC) began investigating the company in late 2022.
ASIC alleged Fairfull provided false information about company revenue and income to potential investors while seeking funding. He is also accused of using his director position to secure a personal loan.
The matter will be heard at the Downing Centre Local Court on 10 December 2024, with the Commonwealth Director of Public Prosecutions prosecuting the case following ASIC's referral.
What they said: "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," ASIC deputy chair Sarah Court said.
The source: ASIC media release
