Former boss of Gold Coast dental group Mike Timoney faces lawsuit for alleged ‘serious misconduct’ and ‘breaches of law’

The former head of Gold Coast dental group Smiles Inclusive is being sued for allegedly engaging his wife to provide swanky cocktail parties at Ferrari dealerships and overcharging.

Mike Timoney pictured with Ildi Redak.

THE former head of Gold Coast dental group Smiles Inclusive is being sued for allegedly engaging his wife to provide swanky cocktail parties at Ferrari dealerships and overcharging as much as 30 per cent.

According to a statement of claim filed yesterday in the Supreme Court in Brisbane, Mike Timoney is also accused by the company of receiving more than $79,000 in company funds, which included close to $40,000 for trips to the US and Europe, that the company says were not incurred as part of “proper Smiles business”.

Mr Timoney denies the allegations and says the mark-ups on hospitality services were normal practice and the trips were for personal reasons conducted under a salary-sacrifice arrangement.

He said the claims are an attempt by “renegade directors” to prevent shareholders voting on appointing its preferred directors to the board of the embattled company.

Mike Timoney is accused of serious misconduct and breaches of law from his time as CEO of Gold Coast dental group Smiles Inclusive. He denies the allegations. Picture: Annette Dew

Mr Timoney, who owns 17 per cent of Smiles stock, and ex-chairman David Herlihy have called a meeting on May 22 to remove new chairman David Usasz and executive director Tracey Penn.

They say they have “grave concerns regarding ongoing corporate governance issues” and have put forward the names of four new directors to “strengthen the board”.

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The new board of Smiles is suing Mr Timoney, Mr Herlihy, Pink Diamond Events Pty Ltd, linked to Mr Timoney’s wife, Romania-born Ildi Redak, and Investment Centre Pty Ltd, which is controlled by Mr Timoney.

Smiles is seeking compensation and restitution from the parties for what it alleges was serious misconduct and breaches of law by Mr Timoney.

Mike Timoney pictured with Ildi Redak on their wedding day last year. Mr Timoney is accused, along with former chairman David Herlihy, of favouring the interests of Ms Redak’s event management business over that of Smiles.

Mr Herlihy is named for his role approving the payments and transactions from his time as chairman.

Among the allegations are Mr Timoney asked Mr Herlihy to direct payments from Smiles to him for $7650 for a trip to Europe in March and April, 2017, and the US for $10,893.28 in May.

Both trips were allegedly for personal reasons.

The statement filed to the court yesterday says the expenses, which also included $4995 billed to Smiles for the use of Mr Timoney’s home by staff, were not incurred in the course of the proper business of Smiles.

Mike Timoney pictured with Ildi Redak on their wedding day last year.

The statement also alleges Mr Herlihy and Mr Timoney in February last year engaged Pink Diamond and Ms Redak to provide event management services to Smiles even though she had no training in the field.

The events billed to Smiles included $29,270.80 for dinner and cocktail events at a Ferrari dealership in Brisbane on May 23 and 24 last year that cost $29,270 and $26,249 for another cocktail party at a Ferrari dealership in Melbourne on June 28.

The total cost billed to Smiles between March and June last year was $167,630.

The statement alleges the invoices were marked up by between 10 and 30 per cent.

Mr Timoney yesterday told the Bulletin he will be defending the claim.

He said is it industry practice in hospitality to mark up by 10, 20 and 30 per cent “depending on the complexity of the event”.

“This was transparently highlighted on the invoice,” he said.

“We held nine fantastically-successful events at five Ferrari outlets that were the best attended of any dental function in the industry.”

Mr Timoney said before the IPO there was “an established corporate policy” that personal travel could be salary-sacrificed.

“If my wages are investigated during that period they will see that precise amount has been deducted from my salary with full knowledge of everyone involved.”