[3] Through connections created with Australian federal ministers, trade officials and their networks, the governments of Britain, Russia, Romania and many others were persuaded to believe Firepower offered important solutions to global warming and the peak oil energy crisis.
The senior trade commissioner at the Australian Embassy in Moscow, Gregory Klumov, was recruited to run Firepower's Russian operation.
[15] The Perth-based rugby union team Western Force was promised millions of dollars in funding which failed to materialise, causing loss of contracted players, notably Matt Giteau.
In 2006, the rugby league team South Sydney Rabbitohs was bought by business partners Russell Crowe and Peter Holmes à Court.
[19] In a press release, Peter Holmes à Court announced Russell and I have been particularly keen to take the club forward in a socially responsible fashion and Firepower certainly fulfils that criteria.
[25] On 21 July 2008, ASIC also filed an action in the Federal Court of Australia against companies associated with Gordon Hill, Warren Anderson, Leslie Stein (Sattvic Pty Ltd) and financial adviser Quentin Ward, who is believed to have sold more than A$40 million of the shares in Perth.
[26] In March 2010, it was reported that former Western Australia state Labor government minister Gordon Hill, facing a A$5 million lawsuit, had declared bankruptcy.
[30] In light of this, the department ordered that the Firepower Pill be withdrawn from sale in Western Australia,[30] together with other purported fuel-saving devices whose advertised claims were not substantiated.
[3] On 28 February 2009, The West Australian newspaper announced that "Thousands of internal Firepower documents have been discovered in a computer abandoned by the disgraced fuel technology firm before its multi-million-dollar collapse in 2007".
The documents included: Firepower's Australian operations were put into liquidation in early July 2008 in the Federal Court of Australia, followed by the British Virgin Islands arm in late September.
The action was commenced by the company's own lawyers over a debt of A$70,000 and joined by mining magnate Ross Graham, who had lent Johnston A$25 million.
[15] Warren Anderson's company Owston Nominees No 2 was the subject of a court action launched by ASIC, which claims it sold Firepower shares to small investors without giving them a prospectus, making a A$20-million windfall.
[35] On 8 February 2011, ASIC's proceedings against Owston and other respondents were successful, the Federal Court finding that declarations and publicity orders were an appropriate form of relief for the contraventions of s727(1) of the [Corporations] Act.
[36] On 18 August 2011, ASIC succeeded in obtaining a similar determination and Federal Court orders against Sattvic Pty Ltd, the company operated by Leslie Stein.
[39] It has also been alleged that Johnston sought to rehabilitate his reputation while in England and facilitate continuing fraudulent actions, by use of a purported letter from ASIC which declared: "Our findings based on credible and confidential information obtained by this office, Indicates (sic) that you have acted appropriately and in accordance with the Corporate Guideline Act and therefore this office no longer finds you a person of interest in this matter."
[41] In 2008, mining entrepreneur Ross Graham, obtained a Western Australian Supreme Court order for immediate payment of over A$12 m in respect of a personally guaranteed loan.
On 3 June 2009, The West Australian newspaper announced that "Former WA police minister Gordon Hill has become the first target of investors trying to recover their money from the wreckage of failed fuel technology company Firepower after he was hit with a $5 million lawsuit yesterday".
The report added that other dealers were expected to be targeted, including the private companies of property tycoon Warren Anderson and Sydney lawyer Les Stein, both of whom were heavily involved in Firepower.
A press report cited IMF's investment manager Paul Rainford as planning a third action against a Singapore company with the goal of recovering a total of A$60 million through the three lawsuits.