CFO World

ADMA dealt another blow with new AADL CEO ordered to pay $1 million for ‘misleading and deceptive conduct'

Matters resulting from share sale back in 2015

The new CEO of the Australian Alliance for Data Leadership (AADL), Stephen Porges, has been ordered to pay almost $1 million by the NSW Supreme Court for ‘misleading and deceptive conduct’.

Porges has been ordered to pay $941,703 in damages and interest, and potentially costs, to Adcock Private Equity (APE) after his actions in selling shares in a tech startup, SecureOne, in 2015.

According to NSW Supreme Court documents, ‘Porges’ misleading or deceptive conduct in respect of the Profit and Reluctant Seller Representations was a cause of APE’s decision to buy the shares in question from Mr Porges’.

Porges sold the shares to APE, however, SecureOne was undergoing damaging litigation at the time, and has subsequently collapsed.

The court said: ‘It is common ground that the shares in SecureOne are worthless. It follows, subject to questions of mitigation, contributory negligence and proportionate liability, that APE is entitled to recover the full amount paid, AUD $941,703.38, from Mr Porges, together with interest from the dates of payment of the constituent amounts.’

The AADL is the parent company of the Association for Data-driven Marketing and Advertising (ADMA), and this is another blow for the beleaguered organisation.

Porges' appointment followed the departure of ADMA CEO and inaugural chief of the AADL, Jodie Sangster, after seven years at the helm. Ben Sharp was then appointed managing director of ADMA in April, but resigned after only two weeks.

Last month, AADL confirmed Andrea Martens as CEO of ADMA plus the Digital + Technology Collective.

The AADL, which sits across both associations as well as IAPA and Data Governance Australia (DGA), confirmed Marten’s role as one of three appointments to its executive team, including Richard Bean, former acting chairman of the Australian Communications and Media Authority (ACMA) as chair of DGA, along with Anthony Hollis, most recently the VP of Australasia for distracted driving solutions company, Katasi, who steps in as DGA’s managing director.

AADL declined to provide comment.

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