Liquidators are questioning witnesses in the Federal Court about the finances of failed fintech venture Sargon, over allegations the company potentially traded while insolvent.
A former board director of failed superannuation fintech venture Sargon said he was assured the company’s founder, Phillip Kingston, could find $31 million to complete its purchase of a trustee service business even after a critical capital raising was deemed “dead”.
Conroy, who joined Sargon in April 2019, was questioned about his knowledge of the company’s acquisition of Diversa, a trustee service business. The court heard that in October 2019, Kingston emailed Conroy and other board members about the best-, worst- and middle-case scenarios to raise capital from stockbroker Wilsons for the Diversa transaction the following month.
“The discussion at that board meeting also discussed what was represented by Kingston … to draw on payments made to Taiping,” Conroy told the court. “Representations made by Kingston was $15 million could be redrawn and available to the company.“There was a small amount of money that would need to be raised that was indicated around the board table would be raised.”
Borelli, who was married to Kingston until they separated in 2020, said she had not turned her mind to Sargon’s solvency until it went into receivership in January that year. She said she did not recall any discussions at board meetings in which concerns were raised about the company’s finances.
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