Julie was prosecuted for fraud relating to an investment for one of her companies, when the ATO Mr Rains contacted the Brisbane Angels in relation to an unrelated company. Mr Rains and the ATO became the ‘informant’ to an alleged fraud setting in motion a false prosecution, providing an opportunity for the investor to retain valuable confidential information valued at $12.0M.
Background
Dealings with Brisbane Angels, John MacTaggart, Richard Hoult and Alan Monaghan
The allegations:
- Julie negotiated with the Brisbane Angels, who agreed to invest in a biotechnology company to advance the development and commercialisation of a therapeutic product. An initial Term Sheet was signed for a first tranche of $185,000, with a total second tranche funding of $1.5 million.
- Despite their fiduciary duty to disclose, John MacTaggart, Richard Hoult, and the Brisbane Angels neglected to inform Ms McEwan about the lawsuit filed against them by WellDog (Gas Sensing Technology) for misappropriation of intellectual property and unfair dealings (see below).
- Julie and the Brisbane Angels mutually decided to end their partnership.
- Requests were made to the Brisbane Angels to return the confidential information, but these requests were disregarded.
- John MacTaggart, Richard Hoult, and the Brisbane Angels have allegedly misappropriated sensitive confidential information refusing to return it to gain a financial advantage.
ATO Mr Rains
Mr Rains of the ATO was reportedly involved in an investigation led by the ATO R&D Director, who initially reached out to the Brisbane Angels regarding a different company.
Over several years, despite presenting evidence of her innocence to the QPS and the prosecutor, they ignored the information and persisted with the prosecution against Ms McEwan.
Unexpectedly and without prior notice, John Mactaggart and Richard Hoult from the Brisbane Angels filed a false complaint with the QPS, accusing Ms McEwan of committing fraud involving investment funds totalling $185,000, seeking criminal restitution of the investment.
It is alleged:
- Mr Rains formed an alliance with Mr MacTaggart and Mr Hoult to bring a false allegation against Ms McEwan for fraud;
- Mr MacTaggart and Mr Hoult retained millions of dollars of confidential information, refusing to return it breaching trust and the agreement;
- Mr Rains pursued Ms McEwan, aware that Mr MacTaggart and Mr Hoult had effectively stolen valuable documents, leveraging the intellectual property to gain a financial advantage.
- After tax losses for just one company exceeds $30M.
John MacTaggart and Richard Hoult
The ATO and CDPP lacked evidence to substantiate the charge and prosecution against Ms McEwan, yet the prosecution was pursued by Mr MacTaggart and Mr Hoult so they could claim back $185,000 they were never entitled to, and knowing as an innocent person, Ms McEwan could be falsely imprisoned.
Nearly six years after the charge was filed, John MacTaggart has finally confessed, acknowledging that the funds were lawfully and properly acquitted. This admission highlights that there was no fraud to justify the prosecution.
The prosecution was supported by the Brisbane Angels, John MacTaggart, Richard Hoult and Alan Monaghan, providing the perpetrators with an opportunity to make off and retain valuable confidential information owned by four biotech companies, damaging Ms McEwan’s reputation and any further opportunity to deal with other investors to progress the therapeutic for commercialisation.
WellDog & Gas Sensing Technology
The Brisbane Angels, John MacTaggart and Richard Hoult are facing further lawsuits involving similar allegations of intellectual property misappropriation.
WellDog is an Australian company whose shareholders are suing John MacTaggart, Jontra Holdings (owned by Mr MacTaggart), Richard Hoult, the Brisbane Angels and others for economic damages and losses caused by the defendants.
It is alleged:
- The Brisbane Angels, along with notable investors such as the Brisbane Angels, John MacTaggart and Richard Hoult, have collectively invested in Gas Sensing Technology, an innovative company based in the United States.
- The Brisbane Angels provided private equity debt and capital in exchange for shares.
- John MacTaggart, along with another investor, devised a scheme aimed at taking the assets of the company from the other shareholders.
- A dispute arose and legal proceedings were commenced in the District Court of Wyoming.
- The case against the defendants include unfair dealings, breach of duties, and misappropriation of intellectual property.
- In a characteristic and predictable manner, Mr MacTaggart initiated his own legal actions as a form of retaliation, an abuse of process.
Ms McEwan and her companies, and Gas Sensing Technology have lost many millions of dollars due to the conduct of the Brisbane Angels and John MacTaggart. Anyone considering on approaching Mr MacTaggart and the Brisbane Angels must proceed with caution. Once intellectual property has been disclosed for due diligence, it can be impossible to have this returned. Two complaints about the same contact, both parties fighting it out in court to obtain justice.
District Court Gas Sensing Litigation:-
https://www.welldog.com/wp-content/uploads/2018/05/Complaint.pdf
Potential Risks and Transactions
Ms McEwan and her companies, along with WellDog/Gas Sensing Technology, have suffered significant financial losses due to the actions of the Brisbane Angels and John MacTaggart. Individuals contemplating engagements with Mr MacTaggart, Richard Hoult, the Brisbane Angels or anyone who has business dealings with them should exercise extreme caution. Once intellectual property is shared, despite confidentialities being signed, reclaiming assets can be challenging. Currently, two complaints regarding the same individuals are being litigated in court as both parties seek justice.