Investigation into Scale Facilitation and founder David Collard heating up as former employees are contacted by federal authorities

Federal officers are contacting former Geelong employees of Scale Facilitation founder David Collard as an investigation into alleged tax fraud ramps up alongside the liquidation of a subsidiary that funded the initial largesse.

David Collard talks with US Ambassador to Australia Caroline Kennedy at American Chamber of Commerce event in June 2022. Picture: Supplied.

The net around once high-flying Geelong businessman David Collard appears to be tightening, with Australian Federal Police officers contacting former staff in recent days as it ramps up its investigation into allegations of tax fraud.

Investigators have started to contact non-executive employees after some senior Scale Facilitation staff were asked to make statements following an AFP raid of its North Geelong headquarters in June last year.

Among those contacted are Geelong-based staff who went unpaid for many months.

One former employee said investigators from the Serious Financial Crime Taskforce – a multi-agency group that includes representatives from the AFP and Australian Taxation Office (ATO) – made contact this month and asked for information on a range of issues.

Another employee said they were contacted as recently as this week.

Information sought includes the inner workings of Scale and its subsidiaries, the functions of specific staff, and how research and development claims were processed.

“Why won’t he (Collard) just man up and come back to face the music,” one former employee contacted by investigators said.

The Armstrong Creek home of Mr Collard’s co-director, James Fatone, was also raided as part of the investigation.

Mr Collard, whose current whereabouts is unknown, and Mr Fatone did not respond to questions.

Australian Securities and Investments Commission records show the pair registered dozens of entities across multiple states for the apparent purpose of research and development – all were named “R&D Scale Facilitation Vehicle” followed by a number.

James Fatone at Geelong’s Technology and Innovation Summit in 2022.

The address listed for each was the Newtown office of Scotts Chartered Accountants at 410 Pakington St.

Under a federal scheme jointly administered by the ATO, there are significant tax incentives for companies that undertake research and development.

It is not suggested that Scotts or any former Scale employees acted illegally.

Authorities in the US and UK are also investigating Mr Collard and Scale on several fronts, including an unpaid $1.1m American Express credit card bill.

The probe into Scale’s activities is concurrent with the liquidation of Scale subsidiary Sanitex Global, overseen by Scott Anderson from Worrells.

A former Geelong employee said it was clear there were financial issues for Scale soon after the raids, which resulted in growing friction between local management and staff.

“About a week before I resigned I went to both of them (management) and asked how they could be hiring anybody, given we were all months behind pay already,” they said.

“I was told ‘that is not your concern, you will be paid in full in due course’ – I was gob smacked … they didn’t care to say the least.

“There were plenty of employees globally that got hired and never saw a single pay.”

Originally published as Investigation into Scale Facilitation and founder David Collard heating up as former employees are contacted by federal authorities