Mayfield receives misappropriated funds settlement agreement from former CEO

ASX listed early education provider Mayfield Childcare has confirmed that a resolution has been reached regarding previously announced misappropriations by its former Chief Executive Officer and Director, Dean Clarke.

The matter first came to the attention of Mayfield in February 2023 when during the preparation of the 2023 CAPEX budget a review of historical payments to suppliers was conducted during which a number of irregularities were discovered. 

Mayfield then moved to appoint specialist consultants KordaMentha to investigate the matter and who then subsequently confirmed in a final report the specific nature of the irregularities and who was responsible for them. 

The resolution reached by Mayfield with Mr Clarke amounts to a $1.06 million settlement, in addition to $45,279 of misappropriated funds already repaid by a supplier. 

Under the terms of the settlement agreement, Mr Clarke must pay $365,396 within 1 business day of the settlement agreement, and the remaining $693,623 within 45 business days.

In addition, the Company has secured warranties and indemnities to ensure remedies are in place to settle any future claims, if further wrongdoings are identified prior to the investigation period of 2020 – 2022.