Patience to win, page-67

ASIC investigating company after inventor of world's largest 3D printer left out of pocket
BY THE NATIONAL REPORTING TEAM'S JOSIE TAYLORUPDATED ABOUT 5 HOURS AGO
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Melbourne-based inventor Jason Simpson built what was billed as the world's largest 3D printer 2014.

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The Australian Securities and Investments Commission is investigating the administration of a company that tried to sell the world's largest 3D printer.

The printer's Melbourne-based inventor Jason Simpson alleges he was unfairly treated by business partners, losing his income and designs, after signing over his intellectual property to the company in exchange for a salary of $150,000, a directorship and about 15 per cent of the company.

Mr Simpson built what was billed as the world's largest 3D printer in 2014, and was approached that year by prominent businessman John Conidi to go into business with him.

"He [Mr Conidi] assured me that he would make me very rich and that he had the skills to not only take the company to the ASX (Australian Stock Exchange) but to make it very profitable," Mr Simpson alleged.

The men and their two business partners registered the company "3D Group" in March 2014.

Mr Simpson, who was trained by his father in the family manufacturing business, claims Mr Conidi told him 3D Group would have a big future client in his booming medical imaging company, Capitol Health, via another related company 3D Medical.

Mr Conidi is the managing director of Capitol Health, which is publicly listed and worth about $120 million.

"This sounded like a good source of work, and a good way to develop our technology," Mr Simpson said.

3D Group floundered, went into receivership
3D Group initially attracted industry buzz, and Mr Simpson's large 3D printer featured prominently at a Melbourne Expo in July 2014.

But Mr Simpson admitted he struggled to get his large printer working, and with no money coming in the company quickly floundered.

"We didn't have the staff, the equipment or the plans properly in place to responsibly take on any orders," he said.

"Great companies ... spend a lot of time and often money in developing these products, they're not just designed quickly and thrown out there."

Company documents show there were unresolvable disputes between the directors, and by late 2014 the company was on the verge of going into voluntary administration.

The ABC has obtained an email from Mr Conidi to Mr Simpson on Christmas Eve 2014.

"To put it simply, $200k is yours up until 5pm or the reality is you get nothing after 5pm as it will go into VA (voluntary administration).

"This position is not reversible by the directors, I suggest you seek legal advice on this point. It's up to you. "

Mr Simpson refused, the company went into administration, and the 49-year-old designer received no remuneration.

Two weeks later, Mr Conidi registered a new company called 333D Pty Ltd.

The assets of 3D Group, including Mr Simpson's designs, were sold by the administrator after being publicly advertised.

333D bought them all, including the 3D printer designed by Mr Simpson, and paid out all creditors.

Mr Simpson had no role within 333D Pty Ltd.

ASIC now investigating, ABC understands
In September 2015, Mr Conidi's new company 333D Pty Ltd signed a deal with the Australian Football League (AFL) to develop 3D merchandise for the league.

333D could soon be a publicly listed company, as it is currently preparing a reverse takeover of listed company Oz Brewing.

In a statement to the ASX on 30 December 2015, OZ Brewing described 333D Limited as "considered to hold global potential ... 333D seeks to position itself as a leader in the sector".

The ABC understands company regulator, the Australian Securities and Investment Commission (ASIC) is now investigating the administration of 3D Group, and that ASIC has appointed a team to examine the business and how it was administered.

Mr Simpson said he now survives on Centrelink benefits, and claims the dispute has caused him to lose his income and his business.

He admitted he should have done things differently.

"If I could do it again it would be ... keep a closer eye on them. Get more advice," he said.

He told the ABC he would like to pursue legal action against his former partners but does not have the funds.

Mr Conidi declined to be interviewed by the ABC but disputes Mr Simpson's allegations.

POSTED ABOUT 8 HOURS AGO