Sigalla faces jail sentence over dishonest use of TZ funds
Mr Sigalla appeared in Sydney's Central Local Court on Thursday on 16 charges of breaching his duties as a director of TZ Limited, which is now run by Celebrity Apprentice star Mark Bouris.
The Australian Securities and Investments Commission alleges Mr Sigalla dipped into the company's bank accounts 16 times between March 2008 and March 2009, using most of the money to pay Mr Waterhouse and the remainder to pay off a mortgage.
The charges laid on Thursday are the latest fallout of Mr Sigalla's tenure at TZ.
Last year, the NSW Supreme Court convicted Mr Sigalla of contempt after he breached a court order by failing to disclose to ASIC almost $30,000 in credit card payments to escort agencies.
At the time he denied personally using the services of the escort agencies, telling the court they were used by a guest who paid him back in cash.
Mr Sigalla was made bankrupt in July 2010 on the application of Mr Waterhouse, whom he owed $2.6 million, under a Victorian Supreme Court order.
Mr Bouris took control of TZ, which makes electronic lockers, in mid 2009 and has since been working to turn around the struggling company.
Under Mr Bouris, TZ launched a $7.5 million claim against Mr Sigalla that was later settled out of court.
ASIC investigators picked Mr Sigalla up from the InterContinental Hotel in Sydney on Thursday morning and took him to court.
The regulator alleges that besides making the dishonest payments, Mr Sigalla failed to record them properly in TZ's financial accounts, failed to obtain shareholder approval for them and failed to disclose the benefit to him in the company's published accounts.
Each offence carries a maximum penalty of five years' jail and a fine of up to $220,000.
Watched by ASIC investigator Ken Goodchild, Mr Sigalla did not enter a plea and was granted bail. He must surrender his passport to ASIC, not approach an international terminal of departure, not leave Australia, and advise ASIC of any change to his current address.
Frequently Asked Questions about this Article…
ASIC alleges Andrew Sigalla dishonestly used more than $6 million of TZ Limited funds between March 2008 and March 2009, making 16 payments mainly to bookmaker Tom Waterhouse and some to repay a mortgage. He faces 16 charges for breaching his director duties, including failing to properly record the payments, not getting shareholder approval and not disclosing the benefit in TZ's published accounts.
Each offence carries a maximum penalty of five years' jail and a fine of up to $220,000. After being charged, Sigalla did not enter a plea and was granted bail with conditions including surrendering his passport and not leaving Australia.
The Australian Securities and Investments Commission (ASIC) investigated the transactions and laid the 16 charges. ASIC investigators picked Sigalla up from the InterContinental Hotel in Sydney and took him to court, and an ASIC investigator, Ken Goodchild, watched his court appearance.
Mark Bouris, known from Celebrity Apprentice, took control of TZ Limited in mid‑2009. Under Bouris, the company — which makes electronic lockers — has been working to turn around the business and launched a $7.5 million claim against Sigalla that was later settled out of court.
Yes. Sigalla was made bankrupt in July 2010 after bookmaker Tom Waterhouse, to whom he owed $2.6 million, applied to the Victorian Supreme Court. Bankruptcy and outstanding legal claims can affect a director's financial standing and any recoveries for creditors or former companies.
Yes. The NSW Supreme Court previously convicted Sigalla of contempt after he breached a court order by failing to disclose almost $30,000 in credit card payments to escort agencies. He denied personally using those services, saying a guest had paid and reimbursed him in cash.
ASIC's allegations point to several governance failures: payments allegedly made for personal benefit without shareholder approval, improper recording of transactions in TZ's financial accounts, and failure to disclose the benefit to the director in the company's published accounts — all issues investors should watch for.
While the article doesn't provide investment advice, everyday investors should monitor official company announcements and ASIC updates, review corporate governance disclosures, and consider the potential impact of legal claims and leadership changes on a company's turnaround prospects and financial health.
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