The former CEO of AI marketing company Metigy, David Fairfull, has appeared in Downing Centre Local Court in Sydney to answer charges following an Australian Securities and Investment Commission (ASIC) investigation alleging he provided false statements to investors and used his position as a director to gain an advantage for himself.
Fairfull has been charged with five counts of making false and misleading statements contrary to s 1041E(1) of the Corporations Act 2001 and one count of dishonestly using his position as a director to gain an advantage contrary to s 184(2) of the Corporations Act 2001.
ASIC alleges that Fairfull provided false information about the revenue and income of the companies in the Metigy group to potential investors.
The securities watchdog also alleges that Fairfull used his position as a director to obtain a loan for his personal benefit.
Between 2018 and 2021, Metigy group companies developed software “designed to harness advances in artificial intelligence to assist small to medium business with digital marketing strategies”, ASIC stated.
In 2019, Optus partnered with Metigy to sell its automated marketing platform to small-to-medium sized business customers.
In late 2020, the Australian Financial Review reported that Metigy had raised $20 million from investors and claimed to serve 26,000 customers in 92 countries.
However in 2022, liquidators of the Metigy group companies were appointed.
"ASIC took this case as directors’ duties are an enduring priority for us," the regulator's deputy chair Sarah 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," Court added.
The matter will return to the Downing Centre Local Court on 10 December 2024.
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