Mystery over Dubber’s $30 million lost when tech founder Steve McGovern is ousted from his own company

A Melbourne software company has fired its chief executive over the “probable” unauthorized use of $30 million that went missing from the company.

Dubber is a call recording software company, founded by ousted CEO Steve McGovern and two other “friends” in 2011, a now-deployable version of its website says.

But an audit late last year found $30 million supposedly held by Christopher William Legal in a term deposit was missing.

Last month, the company told the ASX about $3.4 million had been recovered and $26.6 million remained outstanding.

The funds could have been misused by one or both of Mr. McGovern and the administrator, the company announced.

This week, McGovern, who was CEO and CEO, was fired.

“From the investigation conducted to date, it appears that Mr. McGovern and the administrator were likely involved in the unauthorized use of these funds, including for purposes that were not for the benefit of the company,” the company announced Tuesday.

Between mid-2019 and August 2021, Dubber deposited $60 million into a trust account for time deposits, but a ledger provided by Christopher William Legal “revealed many unauthorized transfers into and out of the account,” Dubber announced. on Tuesday.

“Documents that were likely falsified were presented to the company and its external auditor to support the current existence of the term deposits,” he told the ASX.

The Australian Securities and Investments Commission and Dubber are carrying out their own investigations.

Mr McGovern and Christopher William legal director Mark Madafferi have been banned from leaving the country, sought by ASIC.

Thorney Investment Group chief executive Alex Waislitz said he was “shocked” by the events in Dubber.

However, Thorney Investment Group, which co-owns Dubber, provided a secured bridge loan of up to $5 million in March.

Dubber also launched a $24 million capital raise on Tuesday.

Lawyers for McGovern and Madafferi have been contacted for comment.