Scale Facilitation founder David Collard is at the centre of two US court cases
A cash-strapped Aussie entrepreneur at the centre of two US court cases will have to move out of his $US75K luxury New York rental. See why.
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EXCLUSIVE
A cash-strapped Australian entrepreneur will have to move out of his luxury apartment on New York’s Billionaire’s Row and his business is accused of squatting at the top of the World Trade Center.
Scale Facilitation founder David Collard is at the centre of two court cases filed in New York which allege he has failed to pay hundreds of thousands of dollars in rent on his home and office over several months.
The legal action comes on top of claims that Scale Facilitation has fallen behind on wages owed to staff in Victoria and the US, as well as the company missing a key payment deadline to complete its acquisition of a British electric vehicle battery firm.
Scale’s office in Geelong was raided in June by the Australian Federal Police, and it was revealed earlier this month that the investigation was focused on an alleged $150m tax fraud across four associated businesses. The company has denied any wrongdoing. No charges have been laid.
Mr Collard, a former PwC partner, has been living in a $US23.5m three-bedroom apartment overlooking Central Park since the middle of last year.
But according to court documents filed by his landlord – billionaire Chinese investor and art collector Yiqian Liu – he failed to pay the $US75,000 monthly rental fee in May and June.
In a stipulation of settlement, signed by Mr Collard this month and filed with the New York Civil Court, he agreed to move out of the apartment by the end of August and pay rental arrears totalling $US304,691.
His lease agreement had listed the tenant as 3C USA LLC – another of Mr Collard’s businesses which trades as SaniteX and is a supplier of personal protective equipment.
Last December, Mr Collard moved Scale Facilitation into the 82nd floor World Trade Center, in what he claimed was the highest full-floor commercial lease in the US. The Open Politics website revealed he later subleased part of the 88th floor from software firm Hyperscience.
After the agreement was signed in February, Hyperscience issued a default notice to Mr Collard in May, warning Scale had failed to pay the first monthly rental instalment worth $US200,561 plus a security deposit totalling $US1.2m.
The next month, Hyperscience launched court action, accusing the company of failing to pay up and saying it had “failed to surrender possession of the premises” as required in June.
It said Scale owed a further $US455,518 in unpaid rent on the office, and sought a judgement including rent paid at $US472,296 a month until the company vacated the floor.
Scale is due to respond to Hyperscience’s claim in the New York Civil Court this week.
Mr Collard declined to comment.
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