$38 mln capital disappeared from Firepower’s accounts
John Finnin, former chief executive of the failed fuel technology company Firepower Operations Pty Ltd, an Australian branch of the BVI-registered Firepower Holdings Group Ltd., has told creditors in the British Virgin Islands that a $38 mln fortune has disappeared from the bank accounts of Tim Johnston. Johnston was the discredited director of the Australian-based Firepower Operations, and the director and executive chairman of the parent company Firepower BVI, based in the British Virgin Islalnds. Now he could not be reached for comments.
The information about the money that was found in offshore accounts some weeks ago and now is missing was confirmed by Firepower liquidator Bryan Hughes. Mr Finnin informed him that in the last weeks the money has been moved into other accounts that could not be traced. The Australian Securities and Investments Commission has commenced action against Mr Johnston who is now thought to be residing in the UK, and some other businessmen including property developer Warren Anderson, the previous director of Firepower Holdings Group Limited.
Mr Hughes said he had no power to order an arrest warrant for Mr Johnston, because the shares he sold to members of the public were routed through the second BVI company controlled by him. He assumed that people who thought they were investing directly in Firepower were actually buying Mr Johnston’s own shares, and then, through a complicated network of overseas-registered entities, Mr Johnston hide the money trail. Mr Hughes said that the lost amount might have ended up in secret Swiss bank accounts but all of them might also have disappeared. From some credible sources he knew that Tim Johnston had $6 million in a Swiss bank account in his own name, and now probably it has disappeared.
Those who are alleged to have sold shares in the company, including Mr Johnston, have faced Federal Court charges. The court will consider actions against Mr Johnston for insolvent trading, and that, by his expectations, there would be petitions for his bankruptcy.
Firepower, which has 1,208 Australian shareholders who invested between $80 and $100 mln, was wound up in August in the Federal Court. Among its creditors there are the Western Force rugby team and the now defunct Sydney Kings basketball team.