Former workers at a cyber security firm have been ordered to pay up to $1.18 million in compensation after being involved in a campaign to copy confidential information and commercial arrangements from a partnered firm.
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The ACT Supreme Court previously found that the misdeeds were led by Dreamtime Supply employee Gareth Peak between September 2018 and January 2019.
At the time, Peak was general manager of Bungendore's Steadfast ICT Security where he copied the company's information - including intellectual property, security products and licences - to Dreamtime.
The campaign, which Steadfast described as a "wholesale destruction" of its business, also included poaching employees and directing clients to do business with Dreamtime instead.
It is clear that Steadfast suffered a loss as a result of his [Gareth Peak's] conduct.
- Justice David Mossop
The Court also found that a former Steadfast director David Glavonjic, who became a director of Dreamtime, was knowingly involved in and a "principal author" or "driver" of Mr Peak's plan.
The University of Canberra, Department of Parliamentary Services, Indigenous Business Australia, Department of Agriculture and Australian Fisheries Management Authority were just some of the clients.
At the time, Dreamtime and Steadfast had an outsourcing agreement related to particular IT services that the former obtained by participating in the Australian government's Indigenous procurement policy.
Court documents state that there was a concerted effort to dishonestly copy information to Dreamtime, which included Peak making a "transition" project document for it.
Nenad Stefanovic and Lachlan Watt, former Steadfast employees and now working at Dreamtime, were also aware of the plan and helped implement parts of it.
Despite being told to get legal advice, Peak continued transferring confidential information with his efforts directed to the "running down of Steadfast".
After Stefanovic's job was terminated, Peak was put on notice about his own role, prompting him to try to cover his digital tracks by deleting material, including communications, on Steadfast's computers.
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Evidence during court proceedings included 26,000 pages of documents, forensic analysis of computer records, numerous witnesses involved in both companies and the individual defendants' online messages.
After a May hearing, Justice David Mossop said most of the blame was with Peak, with the judge describing his conduct as "thoroughly dishonest and in flagrant breach of his obligations to his employer".
He ordered that Dreamtime pay Steadfast $1.18 million and for hearings about relief against each individual defendant.
In a December court judgment, Justice David Mossop found all four individual defendants to have breached obligations and duties related to their employment contracts and the Corporations Act.
Peak was ordered to pay $1.18 million, with Stefanovic ordered to pay $202,378.
"Given the comprehensive breach of Mr Peak's fiduciary obligations, the comprehensive nature of his scheme to take the benefit of Steadfast's business and his successful implementation of that scheme, it is clear that Steadfast suffered a loss as a result of his conduct," Justice Mossop said.
Justice Mossop said the loss in profits for Steadfast was estimated to be about 50 per cent of the $1.18 million in compensation ordered.
"That the making of profits by Dreamtime involved additional work on Dreamtime's part does not deny the fact that it was built upon the foundation of Steadfast's documents, information, business systems and opportunities all taken by Mr Peak in breach of his statutory duty", he said.
The other two defendants were found to have breached their duties and obligations but had no financial compensation ordered against them. In Watt's case, the findings related to his failure to conduct himself with care, skill and honesty and in the best interests of Steadfast. Glavonjic was found to have breached his fiduciary duties as a director of Steadfast by his participation in a meeting with a view to taking a business opportunity away from Steadfast, in conflict with his duties to Steadfast.
Justice Mossop ordered that Steadfast is entitled to a maximum of $1.18m from all individuals and Dreamtime to avoid double compensation.
Legal costs are being determined.
Clarification: An earlier version of this article may have been understood by readers as suggesting that David Glavonjic undertook, with Mr Peak, the copying of information belonging to Steadfast for the benefit of Dreamtime. There was no suggestion or finding in the proceedings that this was the case.
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