Scale Facilitation founder David Collard arrested, charged with assault in New York

Melbourne entrepreneur David Collard has been arrested in New York and accused of punching a man in the face, the latest twist in the demise of his start-up empire.

David Collard at Scale Facilitation’s headquarters in New York’s One World Trade Center building. Picture: Abby Holden

A controversial Australian businessman has been charged with assault and harassment in New York, the latest twist in the extraordinary saga stemming from the demise of his start-up empire.

Scale Facilitation founder David Collard was arrested at 1.30am on November 15 last year, with court records detailing allegations that he punched another man in the face, “causing a laceration to the right side of the face and substantial pain”.

Mr Collard was hit with five charges – including two counts of assault in the third degree – and pleaded not guilty to all of them when he was arraigned on December 4.

He was arrested a week before his business SaniteX was placed into liquidation by the Supreme Court of Victoria, following months of claims from staff and suppliers that they were not paid millions of dollars.

Scale Facilitation founder David Collard. Picture: Supplied

In a statement, Mr Collard said the incident “transpired as a consequence of my endeavours to ensure the safety of a friend and myself”.

“On the specified evening, I was contacted by a female friend experiencing harassment,” he said.

“Confronting the individual, an altercation ensued due to his aggressive behaviour. In self-defence, I took appropriate measures.”

The 39-year-old is due to face a trial over the allegations – first reported by the Open Politics website – in the New York Criminal Court in February.

Just over a year ago, the former PwC partner opened Scale’s headquarters in Manhattan in a blaze of publicity, with Deputy Prime Minister Richard Marles calling him a “force of nature” and Opposition Leader Peter Dutton dubbing him “Superman”.

But in June last year, the Australian Federal Police raided Scale’s office in Victoria as part of a major tax fraud probe. It was later revealed that investigators were looking at whether the start-up empire dishonestly obtained $76m from the tax office by filing almost 100 allegedly fraudulent business activity statements, and also attempted to swindle another $52m.

David Collard with Deputy PM Richard Marles. Picture: Supplied

A source with knowledge of the investigation said it could be “the biggest tax fraud in Australian history”. No charges have been laid, Scale has previously denied any wrongdoing, and Mr Collard has refused to answer questions about the allegations.

An AFP spokeswoman said: “As this matter remains ongoing, no further comment can be made at this time.”

Mr Collard and Scale have also been hit with a series of lawsuits over allegedly unpaid rent, bills and wages. He suspended progress on his signature Australian initiative to build a battery gigafactory near Geelong and has been scrambling to revive a similar deal in the UK.

According to court records, the alleged assault occurred on Madison Avenue, near Mr Collard’s apartment where he moved after he was forced out of a luxury pad on Manhattan’s Billionaire’s Row last year because he fell behind on the $US75,000 monthly rent.

The other charges are attempted assault in the third degree, aggravated harassment in the second degree and harassment in the second degree.