Former The Market Herald managing director Jag Sanger is facing allegations of using corporate money for personal use, as part of the legal action launched by the HotCopper parent company.
Former The Market Herald managing director Jag Sanger is facing allegations of using corporate money for personal use, as part of the legal action launched by the HotCopper parent company.
The Market Herald started legal action against Jagdip Sangha, known as Jag Sanger, in the Federal Court of Australia’s Western Australian registry in July.
Mr Sanger was a director of The Market Herald until his resignation in December 2022, which came after the company board tried to oust him from his role.
Details of the legal action were kept under wraps until Business News recently obtained access to the federal court documents lodged by both parties.
In its statement of claim, TMH alleged Mr Sanger and his partner Sarah Lenard spent more than $40,000 of company funds for their own personal enjoyment.
Ms Lenard was employed by Report Card, a subsidiary of TMH, as chief revenue officer until the role was made redundant in January 2023.
According to its federal court document, TMH alleged Mr Sanger breached his statutory and fiduciary duties to the company, and claimed damages and compensation for his breaches.
The corporate debit cards were allegedly spent on New York Yankee tickets, Yallingup accommodation, expenses at Crown, and smart TVs delivered to Mr Sanger’s home, according to the federal court document.
In his defence filed in the federal court, Mr Sanger claimed the bookings at Crown were made during corporate events on behalf of TMH.
Mr Sanger also claimed the smart TVs were delivered to his house when TMH was still setting up its studio and used his place as the interim workplace, according to his defence.
He claimed, in his defence, that he was never provided with a copy of the corporate debit card statements and the transactions were reviewed by the company’s finance director.
Mr Sanger has launched his own legal action against TMH in the federal court in September, under a breach of general protections’ fair work application.
Further claims
TMH's federal court statement revealed the company has also accused Mr Sanger of using his managing director position to influence The Market Herald in hiring his ex-wife Danielle Sanger, nee McGhie, as a contributing writer.
In its statement of claim, TMH claimed Ms Sanger was paid a total of $166,061 between July 2020 and October 2022, despite not delivering services of any material value or benefit.
TMH claimed, in the federal court document, that Ms Sanger submitted articles that were not of a publishable standard because “they were copied from other online sites, and most of them were never published”.
Mr Sanger has rebutted the allegations against him in his court-filed defence, claiming it was common practice in TMH or Report Card for staff to be hired based on internal networks or recommendations.
In his defence, Mr Sanger listed 23 people who were hired by TMH despite their roles not being advertised externally.
Mr Sanger alleged, in his federal court document, that numerous payments and subscriptions were made on behalf of TMH to his personal debit card.
He instead claimed, in his defence, that the company was required to reimburse him the funds charged to his personal card, that were for TMH’s benefit.
In his defence, Mr Sanger denied TMH or Report Card have suffered any loss or were entitled to the relief sought.
