Inside story: David Collard, Scale Facilitation and the St Joseph’s College connections
Several Geelong identities are owed vast sums, long-time friendships have crumbled and, in some cases, been replaced by family rifts, senior politicians have been embarrassed, and once close associates are left wondering how it all happened.
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As New Yorkers swarmed the financial district below, buoyed by the start of another summer, a dozen or so former St Joseph’s College students last year gathered on the 82nd floor of the One World Trade Center.
Formerly the site of the World Trade Center that came down on September 11 2001, the exclusive group was being hosted in the new headquarters of Scale Facilitation.
The company was headed by third-generation Joey’s alumni David Collard, who hastily highlighted that his $115,000-a-month apartment overlooking Central Park was within view.
Among the group was principal Tony Paatsch, who took the long way home after a conference in Ireland.
“It was really low key,” he recalled.
“We had a couple of beers, a piece of pizza, and I spoke to them about developments at the school and how things are at their alma mater.”
Little more than a fortnight after that reunion, Mr Collard’s North Geelong offices and the home of his obedient right-hand man James Fatone were raided by Australian Federal Police (AFP) officers as part of a multi-agency probe into alleged tax fraud.
To describe 2023 as a turbulent year for the 39-year-old would be, at best, an understatement.
Yet with Sanitex Global Pty Ltd – the Scale subsidiary that funded the initial largesse – in liquidation since late November, creditors circling, and federal investigations ongoing, this year may make last year look like a breeze.
Several Geelong identities are owed vast sums, long-time friendships have crumbled and, in some cases, been replaced by family rifts, senior politicians have been embarrassed, and once close associates are left wondering how it all happened.
Multiple sources said one prominent local businessman with ties to St Joseph’s would not see any of the $1m he invested after Mr Collard put the call out to his Geelong network for cash in early 2023.
Geelong Football Club never got a cent for a Gold Cats corporate membership worth tens of thousands, the Give Where You Live Foundation is owed $15,000 after sponsorship money didn’t eventuate, while Deakin University did not respond to questions after it allocated $10m of a $50m federal government grant to Scale in 2022.
The Hamilton Group evicted Scale from its two Federal Mills premises last year after rent went unpaid for months. The same happened with Mr Collard’s US landlords.
Most of the 25-30 employees based in Geelong went without pay for many months, while one senior figure said people were being employed without funds to pay them.
Concerned, the employees reassured each other that things would be fine because someone heard from someone who heard from someone that a major cash injection was just around the corner.
“When you got in his (Collard’s) realm, you kind of just drank the Kool-Aid,” a former employee said.
“He thought that it was all going to be OK and I think he’s probably more shocked than anyone that it isn’t.
“David would think he was the smartest person in the room, and at times he absolutely was, but the problem, I think, is that his ego just got the better of him.”
Others weren’t as kind, describing their former boss as a master of manipulation and intimidation.
“I witnessed some incredibly nasty and monstrous behaviour,” one said.
Scott Anderson of Worrells is leading the Sanitex liquidation, which is in its early stages.
“We’re continuing to gather information, documents and conducting the investigation,” he said.
Company documents show Mr Collard and Mr Fatone as directors of Sanitex Global Pty Ltd and Scale Facilitation Pty Ltd.
It is understood that nobody within Scale or any of its subsidiaries, including the chief financial officer, had access to the company’s statement of accounts except for the directors.
One of Mr Collard’s registered addresses is his parent’s Belmont home, which has been on the market since July last year with an asking price starting at $1.05m.
Both the AFP and Australian Taxation Office declined to comment, citing ongoing investigations.
Mr Collard and Mr Fatone did not respond to questions.
They have previously denied any wrongdoing.
No-one could pinpoint Mr Collard’s current whereabouts.
Some said he was in the UK, others said he was living rent-free with friends in New York.
The old boys
Exactly one year before their offices were raided, Mr Collard and Mr Fatone stood proudly in the St Joseph’s College forecourt to promote their eponymous bursary.
Having graduated in 2002, Mr Collard said his education at the all-boys school was a key driver of his success. The bursary was about giving back.
There was also the Collard Family Entrepreneur Program that would see Mr Collard give online classes.
“David shared with us how the occurrence of Covid-19 led to starting a successful business called Sanitex Global,” one student recalled.
Mr Paatsch said Mr Collard and other Scale staff were generous with their time.
In the college’s October 2017 Ad Alta Virtute alumni magazine, Mr Collard highlighted his promotion to partner at PwC’s New York office.
“I was blessed to have a group of the old boys come over to celebrate with me and my other close friends and family,” he wrote.
“Old boys who made the journey across included Gus Beeforth, Adriane Benne, James Fatone, Philip King, Jared Lingford, Daniel Palmer, Peter Stanfield and Luke Thackeray.”
Years later, a number of those who partied atop the Rockefeller Center with Mr Collard were working for Scale on salaries that far exceeded their experience and, depending on who you speak to, their ability.
There were other old boys who came along for the ride, securing senior positions that some quietly walked away from when they saw the inner workings.
Sources said Mr Fatone and Mr Thackeray stuck by their boss while others had fiery confrontations.
“This has done a lot of damage to that school and it’s done a lot of damage to people who contribute to that school,” a former executive said.
Another said Mr Collard surrounded himself with school friends because they would blindly follow him.
“There were a couple who stood up to him and he essentially just cut them off,” they said.
It is not suggested that any former friends, colleagues or classmates acted illegally.
Party in the paddock
As some employees started to “smell a rat” in the form of unpaid wages, deputy prime minister and Corio MP Richard Marles, Corangamite MP Libby Coker, and Industry Minister Ed Husic joined employees of Recharge Industries, another subsidiary, at Avalon Airport’s industrial precinct in May last year.
It was to be the home of a battery-cell “gigafactory” that would create thousands of jobs and generate 30GWh hours of storage capacity by 2028.
The problem was no lease had been signed for the site.
Yet, in what could only be described as a stunning political misjudgment, Mr Marles was there promoting the project’s benefits.
One former employee with detailed knowledge of the event described it as a “party in a paddock”.
“It’s just laughable, looking back,” they said.
Mr Marles spoke at Scale’s launch of its US headquarters in December 2022.
Opposition leader Peter Dutton was also there, having had his flights and accommodation paid for by Scale, as was Wadawurrung Traditional Owners Aboriginal Corporation’s Corrina Eccles to represent the “land where Scale Facilitation was conceived”.
In widely reported comments, Mr Marles, labelled “Dave” a “force of nature” and “innately entrepreneurial”.
“Dave is a person who is values driven and who is passionate,” he said at the glitzy launch.
One employee said it was “absolutely f***ing bananas” that Mr Collard brought Mr Marles and Mr Dutton together.
“It’s bizarre, the weirdest thing that’s ever happened, probably,” they said.
It is understood Mr Marles was introduced to Mr Collard by a close Geelong connection who effectively vouched for the businessman.
Former Scale employees said Mr Collard regularly referenced his relationship with the deputy prime minister.
“Dave could call and message Richard whenever he wanted,” one said.
Another recounted a story where, in a desperate attempt to find the cash needed to seal the deal to take control of failed UK battery maker Britishvolt’s $6.7bn project, Mr Collard said: “I’ll just ring the DPM (deputy prime minister)”.
The executive was forced to explain the strict rules around obtaining government funding, particularly for an overseas project.
“It was total and utter arrogance,” they said.
“There were no assets … the only assets they would’ve had were IT equipment and chairs.”
Mr Marles declined to comment, while Mr Dutton did not respond to questions.
Trust
In the month before the Avalon event, Mr Collard was spruiking his ultimately failed efforts to seize control of the Britishvolt project.
Light on specifics, he told one media outlet that “trust and transparency” would get the job done.
“We won’t fail, mate – failure is not an option,” he said.
Those comments now seem absurd.
“It’s so far gone,” one former executive said of Scale’s once sky-high ambitions.
“But I think there’s a lot more to come in terms of things that have been done and haven’t been done properly, shortcuts that have been taken.
“It’s sad but I don’t feel sorry for him.”
Do you know more? Email luke.griffiths@news.com.au
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