Polis investigated, spending habits exposed

FALLEN Energy Watch boss Ben Polis was investigated by the corporate watchdog over the collapse of one of his businesses, company documents reveal.

By InvestSMART · 7 Apr 2012

By InvestSMART ·
7 Apr 2012

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FALLEN Energy Watch boss Ben Polis was investigated by the corporate watchdog over the collapse of one of his businesses, company documents reveal.

Accounts filed by Mr Polis (pictured right on a company billboard) also show that he borrowed more than $110,000 from another of his failed businesses, spending company money on dentistry, hairdressing, clothing and a ski holiday.

Mr Polis quit as chief executive of Energy Watch and the company was dumped as a major sponsor by the Melbourne Football Club on Thursday after the exposure of a string of racist and sexist remarks he made on social networking site Facebook.

He was replaced as chief executive by business partner Luke Zombor, Energy Watch's chief financial officer.

Announcing the Demons had severed ties with Energy Watch on Thursday, chief executive Cameron Schwab defended the club's decision to sign the $2 million-a-year deal.

"We did the requisite amount of investigation," Schwab said.

Documents on the public record show that before starting the energy broker in 2009, Mr Polis and Mr Zombor were involved in two failed businesses.

Both were directors of Saint Group Australasia, also known as St Kilda Marketing, which collapsed in 2008 owing more than $110,000, including $28,000 in unpaid staff superannuation.

The possibility that the Australian Securities and Investments Commission might launch prosecutions over the company's affairs was raised by liquidator Tony Cant of Romanis Cant in accounts filed in 2009.

It is not known whether ASIC took any action and Mr Zombor did not respond to emails from The Saturday Age.

While Mr Polis was the sole director of another failed business, Polis Australia, which collapsed in 2009 owing more than $283,000, documents show Mr Zombor worked at the company.

Company ledgers filed by Mr Polis show that he owed the company more than $112,000 at the time it collapsed. Mr Zombor owed $1700.

They show Mr Polis used his loan account to spend $795 for cosmetic dentistry and tooth whitening, $90 at hairdresser Claire Francoise, which specialises in hair removal, and during a ski holiday in July 2008.

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Frequently Asked Questions about this Article…

What happened to Energy Watch after revelations about CEO Ben Polis?

After revelations about racist and sexist remarks made by Ben Polis on Facebook, Polis quit as chief executive of Energy Watch. The Melbourne Football Club dropped Energy Watch as a major sponsor, and Polis was replaced as CEO by his business partner and chief financial officer, Luke Zombor.

Was Ben Polis investigated by the corporate watchdog over his failed businesses?

Company documents show Ben Polis was investigated by the corporate watchdog over the collapse of one of his businesses. A liquidator also raised the possibility that the Australian Securities and Investments Commission (ASIC) might launch prosecutions, but the documents say it is not known whether ASIC took any action.

Which failed companies were Ben Polis and Luke Zombor linked to before Energy Watch?

Documents show Polis and Zombor were involved in two failed businesses before starting Energy Watch: both were directors of Saint Group Australasia (also known as St Kilda Marketing), which collapsed in 2008 owing more than $110,000, and Polis was sole director of Polis Australia, which collapsed in 2009 owing more than $283,000. Records also show Zombor worked at Polis Australia.

Do company records show Ben Polis used business funds for personal spending?

Yes. Company ledgers filed by Polis show he owed the company more than $112,000 when Polis Australia collapsed, and that he used his loan account for personal expenses including about $795 for cosmetic dentistry and tooth whitening, $90 at a hairdresser (Claire Francoise), clothing and spending during a ski holiday.

How much did Ben Polis and Luke Zombor personally owe their failed company at collapse?

According to company ledgers, Ben Polis owed the company more than $112,000 at the time Polis Australia collapsed, while Luke Zombor owed about $1,700.

How did the Melbourne Football Club defend signing a sponsorship deal with Energy Watch?

When announcing it had severed ties with Energy Watch, CEO Cameron Schwab defended the club’s earlier decision to sign the reported $2 million-a-year sponsorship, saying the club had done 'the requisite amount of investigation' before signing the deal.

What concerns did the liquidator raise about Saint Group Australasia (St Kilda Marketing)?

Liquidator Tony Cant of Romanis Cant filed accounts in 2009 for Saint Group Australasia that showed the business collapsed owing more than $110,000, including about $28,000 in unpaid staff superannuation. The liquidator also raised the possibility that the corporate regulator (ASIC) might pursue prosecutions over the company’s affairs.

What should everyday investors learn from the Energy Watch and director conduct revelations?

The situation highlights why investors and sponsors should check company filings and director histories. Public records, liquidator reports and prior business collapses can reveal risks such as unpaid liabilities, related-party loans and director conduct—issues that can affect a company’s reputation and financial stability.