From the documents received two weeks ago concerning the failed fuel technology company Firepower Operations Pty Ltd 2004-2005 and 2005-2006 profit and loss figures, it became clear that its director Tim Johnston, who was also the director and executive chairman of the parent company Firepower BVI, has spent incredible sums for the personal needs and the needs of his family. There was a huge rise in spending, particularly in the amounts spent on travel, hotel accommodation and phone bills.
This information revealed in documents obtained this week is related to the two years period before the company’s collapse, and includes, among others, the following facts:
Company’s expenditure on international flights rose from $157,062 in 2004 – 2005 to $1.1 million just one year later. In the same way, mobile phone bills of Mr Johnston and his family were all paid by Firepower investors. Hotel bills jumped dramatically from $37,292.61 in 2004-05 to $322,962.55 in 2005-06.
According to Firepower liquidator Bryan Hughes, Mr Johnston would claim the expenses were incurred “running round the world”, to firm up contracts for the sale of stock, which would be used to underpin an international stock exchange listing. In the opinion of Mr. Hughes, however, stock exchange listing was impossible for Firepower due to fatal flaws and misrepresentation related to the company’s property, of which its director should have known.
Last year, before his company collapsed, Mr Johnston and his family led a luxury life, using millions raised from investors. Almost $100 million was raised for Firepower, and its director faces charges brought by the Australian Securities and Investments Commission in the Federal Court that relate to the sale of shares without a prospectus, but ASIC has no power to force Mr Johnston to return to Australia.
Before any extradition application could be made, Firepower would have to be charged with a criminal offence.