Nuix and Macquarie’s filthy laundry aired in sizzling affidavit

The affidavit also outlines a cosy partnership among founder Tony Castagna, Macquarie and senior Nuix executives like then CFO Stephen Doyle, who is at this time the subject matter of an Australian Securities and Investments Commission (ASIC) insider investing investigation.

The affidavit alleges a $100 million funding deal with sector fund UniSuper was scuppered soon ahead of remaining finalised by Castagna in mid-2016. “I am likely to be charged with tax evasion and dollars laundering and I do not want to notify UniSuper. I am going to eliminate the offer instead,” Castagna allegedly told Sheehy.

“Tony, I imagine you have to have to resign,” Sheehy alleges he told Castagna. “The AFP and ATO are two of Nuix’s most significant and most distinguished buyers, and it does not glimpse excellent. It is not superior for the firm. All our worldwide regulator buyers like the IRS and SEC in the US and the FSA in the Uk will listen to. It will be truly terrible for the business.”

The affidavit stories textual content messages among then Nuix director and Macquarie representative David Standen, where Sheehy suggests: “He [Castagna] simply cannot be our chairman when he is billed. I can see the headlines – ‘Panama Papers investigation enterprise chairman charged with tax fraud and income laundering’. It has kept me awake significantly of the night time … it will be a milestone around his neck as customers go away and opponents stomach chuckle.”

It says within weeks of the UniSuper offer falling aside, Castagna brokered a deal with Macquarie to buy some shares.

Sheehy’s ask for for his resignation was dismissed, and he alleges he was bullied out of the corporation.

Castagna was billed and in April 2018 a Supreme Court jury found Castagna and his cousin responsible of money laundering and tax evasion. He went to jail.

Tony Castagna was despatched to jail and acquitted in June 2019.Credit history:Dominic Lorrimer

On June 5, 2019, the Court of Felony Attraction quashed his conviction, and he was acquitted. The Crown circumstance was that he experienced averted tax by channelling his consultancy fees from Macquarie to Vanuatu by way of a New Zealand lender account operated by a British isles enterprise.

Even if it was assumed the Crown situation was powerful, the attraction court judges claimed a new trial was not suitable in section for the reason that of Castagna’s age, he was then 72, and he’d now been in jail for far more than a yr.

Before long right after his acquittal he rejoined the Nuix board. Days prior to Nuix outlined he resigned and unbeknown to investors Nuix entered a consultancy arrangement with Castagna which was terminated in May possibly 2021.

Jonathan Rubinsztein CEO of Nuix

Jonathan Rubinsztein CEO of NuixCredit score:Jessica Hromas

Nuix elected not to simply call Castagna as a witness in the latest court proceedings, which intended numerous of the allegations raised in the affidavit could not be heard in courtroom. The situation concluded on Thursday with closing submissions in August. The judge will then make a discovering afterwards in the calendar year.

Regardless of the unrelenting undesirable headlines you would not know if from serial optimist Nuix CEO Jonathan Rubinsztein’s letter to staff on Friday.

“Happy July 1 … These days is an fascinating day for all of us at Nuix as our new framework formally arrives into put,” he explained to workers. “This is aspect of our journey of producing a Nuix that is extra purchaser-focused, with a less complicated organisational framework that helps make it much easier to function with us – for our prospects, our stakeholders and you – our individuals.”


Absent was any mention of the court case which, if successful, would have a profound effect on Nuix’s finances.

Nor did he mention that buyers have been staying smacked with double-digit price tag hikes, well in excess of inflation, and some items on the new cost record are up virtually 200 for each cent.

He also unsuccessful to point out the other elephant in the room, Nuix’s fiscal functionality for 2022. If the share price efficiency is any tutorial, buyers are expecting additional terrible information when it reports its comprehensive-yr final results in August.

Considering that Rubinsztein’s appointment as CEO was announced in October previous calendar year, the share rate has absent from $3.05 to near on Friday at 78¢.

The company’s line internally is that the scandals are just sounds, but concerned team have their CVs ready.

An investor in March previous year described Nuix as lipstick on a pig, immediately after observing the shares tumble.

A calendar year later on, the descriptions are significantly worse. Right after listening to the court scenario, a single investor told an on the web discussion board Nuix was a “train wreck” and a basket scenario. “$1 million in this article … $10 million there … Monopoly money. And yet once again the file keeping is dismal,” the trader wrote.

But there are often beverages. In the upcoming couple of weeks employees are invited for a Nuix reboot to kick off the new 12 months. Traders can only hope.

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