Unbelievable !! No wonder Slaney is quiet and dropped off announcements, and what about Peter Pawlowitsch and Bongornio. How can they say knew nothing about what was going on and let McGovern run wild ? Pawlowitsch was even acting CFO , looks acting was only thing he did
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Sacked Dubber CEO Steve McGovern’s string of personal and business debts revealed
Former Dubber boss Steve McGovern has been embroiled in a string of historical legal disputes, involving allegations he failed to pay back business and personal loans.
The sacked chief executive of ASX-listed Dubber, Steve McGovern, has been embroiled in a string of historical legal disputes involving allegations he failed to pay back business and personal loans.
The revelations come after the software company announced it would continue to search for a missing $26.6m, allegedly misused by Mr McGovern and lawyer Mark Madafferi of Christopher William Legal, who have been ordered by the Federal Court not to leave the country while the corporate cop investigates.
The Australian can also reveal Christopher William Legal acted for Mr McGovern in 2017 in a dispute involving claims a company he is the director of failed to pay back a $525,500 loan. The case was discontinued.
The North Melbourne law firm also acted for Mr McGovern when he was sued in 2017 for more than $5.6m amid claims he defaulted on a separate mortgage. That matter was discontinued as well.
Historical court documents obtained by The Australian show Dubber Pty Ltd, a wholly owned subsidiary of the ASX listed Dubber Corporation, was sued in 2015 by Caason Group after its founder Craig Astill claimed Mr McGovern and another man “failed, refused and or neglected to pay” back $30,000 borrowed for wages.
The request for money was oral and made to Mr Astill at his office on Little Lonsdale St, Melbourne, by Mr McGovern and Peter Slaney – an “agent” of Dubber, Caason claimed – on or about 12 December 2013, the court documents state.
Software company Dubber started trading on the ASX in December 2014 via the backdoor listing of Crucible Gold.
The company denied the loan was for Dubber, and claimed it was for a group of companies called My 1300 Group to satisfy a wage bill, court documents said.
Mr Slaney, in his capacity as one of three controllers of My 1300 Group, asked the in-house legal counsel for Caason, Richard Flory, for the money “to satisfy a wage bill”, according to Dubber’s defence paper.
“The loan was sought by and on behalf of My 1300 for the purpose of paying a wage bill for a call centre in Manila,” the court documents read. “(Mr Slaney) was known to Richard Flory and the plaintiff (Caason Group) as they had business affiliations.” Mr Astill demanded Dubber repay the money on January 22, 2014, but Dubber claimed it had “no legal obligation to make payment to the plaintiff”, according to its defence paper.
Caason Group claimed Mr McGovern and Mr Slaney told Mr Astill’s company he would “personally guarantee the repayment of any monies the plaintiff lent to Dubber”.
Mr McGovern and Mr Slaney denied they agreed to pay interest or other costs associated with the loan, and in their defence – lodged by now defunct law firm Stanton Grant Legal – claimed they offered to repay $30,000 but Caason Group refused to accept it.
Stanton Grant Legal was a Melbourne law firm that was placed under external management in 2018 after it was raided by the Victoria anti-bikie task force amid an investigation into money laundering by the Comancheros motorcycle gang. The dispute was set to go to trial in 2017, but was ultimately settled between the parties in May that year.
A Dubber spokesman said: “The Dubber board of directors is providing its full support and co-operation to a current investigation into related issues with the Australian Securities & Investments Commission. As this is an ongoing investigation the company cannot provide further comment at this time.” Mr Astill declined to comment.
Mr McGovern was also sued by the Commonwealth Bank in 2008 for defaulting on more than $9000 worth of mortgage repayments on a home in Warrandyte, northeast of Melbourne.
The Victorian Supreme Court ordered the bank to “recover” possession of the land and that Mr McGovern pay $667,952.52, interest and costs. In 2017 a company that lists Mr McGovern as director, Nichet Holdings, was sued by lenders who claimed it defaulted on a $596,000 mortgage on a property in Collingwood.
Before the matter was discontinued, Chiodo Madafferi Solicitors signed a notice of appearance to act for the defendants, including Mr McGovern. Chiodo Madafferi became Christopher William Legal in 2017.
Mr McGovern was also sued by Church St Holdings in 2017 for failing to repay money he borrowed for three businesses for which he used his property in Warrandyte as a security.
According to the court documents, he was liable to pay $5.6m worth of interest after defaulting on payments he owed. After Christopher William Legal lodged their intention to act for Mr McGovern in December 2018, the proceeding was dismissed in January 2019.
Dubber entered into a trading halt in February this year after the board discovered $26.6m of company money that was deposited to a trustee, Christopher William Legal, was missing.
A trust account ledger provided by the law firm revealed “many unauthorised transfers in and out of the account”, an ASX release said.
Out of $60m that was transferred into the trust account between mid-2019 and August 2021, $26.6m remains unaccounted for “likely misappropriated by Mr McGovern and Mr Madafferi for unauthorised purposes, including payments to multiple third parties and entities”.
Mr McGovern’s employment was terminated on April 10.
The Australian contacted Stary Norton Halphen Solicitors and Doogue and George Defence Lawyers, who are understood to be representing Mr McGovern and Mr Madafferi, for comment.
