TalentNation dispute as allegations made about £500,000 of £1m Scottish Enterprise investment
Around £500,000 of the initial £1m Scottish Enterprise investment into social media start-up TalentNation was quickly transferred out of the business into the joint accounts of managing director Steve Sampson and his wife, according to allegations that have been made by a former employee.
The employee, Brian Whittle – a former Olympic Athlete – is currently suing TalentNation for around £85,000 plus interest in a case that will come before Hamilton Sheriff Court in August.
Whittle alleges in the closed record for the case, “Within a few days of Scottish Enterprise making the investment of £1m, £500,000.00 was transferred from the TalentNation bank account to the Joint account of Mr Sampson and his Wife.”
The specific allegation is not answered by the TalentNation team in court documents and when contacted by The Drum Sampson declined to comment. However, other sources say he will argue that the money was transferred on the advice of legal experts into an escrow account for tax purposes, with the full knowledge of Scottish Enterprise. He will argue that every penny has been accounted for.
The relationship TalentNation has with its main investor Scottish Enterprise hit a new low when the regeneration body successfully petitioned the courts for a provisional liquidation order of the company. Sampson has now lodged answers to that order, and another hearing is expected soon to decide if a liquidator should be appointed.
Scottish Enterprise declined to comment on whether or not they had knowledge of the £500,000 transfer but said at the time of the provisional liquidation order:
“We have had grave concerns in relation to the affairs of the company for some time. After substantial investigation and professional advice we feel we have no choice but to ask the Court to appoint a liquidator to take all appropriate action in the interests of the taxpayer and those dealing with the company.
“Pursuing this court action is unprecedented for Scottish Enterprise. It is not a decision which we have taken lightly and comes after several unsuccessful attempts to resolve matters through more conventional routes.”