A SOCIAL networking business promoted by top football stars was forced into liquidation over allegations the owner pocketed £500,000 of taxpayers' cash, it emerged yesterday.
Steve Sampson is said to have “unlawfully” transferred half of a £1 million investment by Scottish Enterprise in TalentNation – a website where the likes of Celtic’s Scott Brown and former Rangers striker Kenny Miller encouraged sporting youngsters to upload videos – into an account held by himself and his wife Elizabeth.
Documents presented to the Court of Session in Edinburgh this week claim Mr Sampson made the move just days after the Government agency invested in the firm.
Fresh details about the case emerged after The Herald reported yesterday how Scottish Enterprise had taken the unprecedented step of forcing Bellshill-based TalentNation into liquidation at the court.
Mr Sampson, 59, a former editor of the Scottish Sun, had initially resisted the motion by Scottish Enterprise.
But he failed to attend Tuesday’s hearing to defend the action and the business was liquidated.
An excerpt from court papers read: “Within a few days of Scottish Enterprise making the investment of £1m, £500,000 was transferred from the TalentNation bank account to the joint account of Mr Sampson and his wife.”
The documents also stated: “The sum of £500,000 was misappropriated from the company by Mr Sampson on December 8, 2009 and a further sum of £75,000 was so misappropriated by him on December 21, 2009.”
They were labelled “payments to a director” in records, but were never repaid to the company.
Under a section labelled Misappropriation of Company Assets, they further state: “Mr Sampson instructed the instantaneous transfer of the sum of £500,000, out of subscription monies received that day by the company from the petitioner and Carswell Ltd, from the company’s brand account to a personal bank account held, jointly, by him and his wife.”
The statement continued that Mr Sampson “instructed the further transfer of the sum of £75,000 from the company bank account to a personal bank account”.
The transfers, which amount to a large proportion of the firm’s assets, were described as “unlawful” by Scottish Enterprise.
Anas Sarwar, Labour MP for Glasgow Central, said: “People will be pretty angry about this. Scottish Enterprise must be able to invest in innovative companies which drive growth, but they also have a profound responsibility to spend the public’s money wisely.
“Proper checks have to be in place to ensure these companies are sound and have a solid business model.”
Scottish Enterprise launched the petition for liquidation following a legal dispute between TalentNation and Olympic athlete Brian Whittle.
Mr Whittle raised an action at Hamilton Sheriff Court in April over unpaid fees and salary.
A spokesman for Scottish Enterprise yesterday said: “We can confirm that Talent Nation plc is now in liquidation and the liquidator can proceed to wind up the company and act as necessary in the interests of the taxpayer and those dealing with the company.
“Pursuing this court action is unprecedented for Scottish Enterprise and until such time as the liquidation is complete it is unlikely we will be in a position to take any decision on whether any further action will be pursued.”
Mr Sampson’s home in Troon, South Ayrshire, which is up for sale for offers over £1.4m, was deserted yesterday and he failed to return The Herald’s calls.
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