The police investigations centre around a $3000 options package that delivered Dr Castagna an $80 million windfall when the data analytics company listed on the stock exchange in December.
A joint investigation byThe Sydney Morning Herald,The Age andThe Australian Financial Review has revealed apparent gaps in Nuix’s records concerning the date that an offshore company controlled by Dr Castagna obtained 300,000 share options in Nuix.
The federal police has confirmed that Dr Castagna is under investigation “in relation to potential offences under the Commonwealth Corporations Act”. In an email a media spokesperson would not confirm what specifically was being investigated,saying it “would not be appropriate to comment further” as the investigation was ongoing.
When Nuix restructured in 2017 as the first step towards a public float or trade sale,shareholders were given 50 shares for each share they owned. This turned Dr Castagna’s holding into 15 million shares which were sold at $5.31 each when Nuix listed,landing him a $79.65 million windfall:a handsome return from his $3000 investment. While the return would have been the same regardless of when the options were created,there are possible tax implications depending on when the options were granted.
Dr Castagna,formerly a long-term consultant with Macquarie,did not respond to questions about the police investigation when approached this week. He has previously declined to comment on the options deal.
Dr Castagna was forced to step down from the Nuix board to serve a four-year sentence for tax fraud and money laundering before his conviction was quashed and he was acquitted. He returned to Nuix as chairman but resigned ahead of the IPO last December.