number of other businesses. At the end of June 2003, the shareholders of
DeMorgan entered into an agreement with Michael Ryan, to sell 5% of the
company shares to him for $50,000. Part of the agreement included a non-
compete clause which, it doesn't take a law degree to understand, precludes
those involved from attempting to poach the company's clients should they
subsequently leave its employ.
One month later, following their new investor’s all-too-late discovery of
questionable spending within the company, Craig and Lynn Wright resigned
as directors and, you guessed it, Craig set about approaching DeMorgan's
clients for business, including his former employer the ASX, where he still
maintained a good relationship with its employees, with him being cited as
claiming he would “spend over a million dollars to see DeMorgan go under”.
Ironically, it would turn out that Craig would, indeed, be found liable for a
little under half that amount following the resulting liquidation of DeMorgan
arising from his damaging behaviour. A $425,000 bankruptcy notice being
charged against Craig Wright in recovery actions sees him eventually settle
to avoid the inevitable in 2013.
DeMorgan's new shareholder, clearly smarting from having invested in a
business he’d not been given the full truthful picture of, only to see its board
members abandon ship one month later and set about damaging the value
of his investment further, took them to court, where they were found guilty
of a breach of contract and instructed to cease and desist from further
contact with the company's clients.
This is the part in the movie where a narrator would cut in with a wry, "Craig
Wright did not cease and desist from further contact with the company's
clients".
Fast forward to 2004 and Mr Ryan has now had Mr and Mrs Wright dragged
back into court for their nefarious activities in contravention of the original
court's judgement.