Downfall of £124m oil tycoon... sleeping in an office in his yellow underwear
Tribunal told how bankrupt ex-director of football club duped firm
A FORMER Dundee FC director who lost his £124million fortune duped a business into employing him before squatting in their office.
Bankrupt oil tycoon Calum Melville was discovered sitting in ‘yellow underwear’ after camping out for weeks in the offices of I Need Pampering Ltd.
The former multi-millionaire convinced the luxury spa break retailer he had £50,000 to invest in the company – but only ever came up with £4,500, which was paid from his mother’s bank account.
The 52-year-old Scot, who appeared on the 2009 Sunday Times Rich List, used his ‘charm and charisma’ to dupe directors into giving him a stake in their firm, a tribunal heard.
The hearing was told he was arrested after they found him squatting at their Manchester office in his ‘yellow underwear’.
He was living on petty cash and running up bills in the company’s name.
Melville had used a sleeping bag on the office sofa for eight weeks and had run up expenses such as a £4,000 photocopier.
The businessman has been ordered to pay £18,136 after he lost a tribunal in which he claimed he was unfairly dismissed.
A spokesman for I Need Pampering later branded him a ‘con artist’ and ‘monster’ who cost the firm ‘thousands and thousands’.
Melville was 436th on the 2009 Sunday Times Rich List and one of Scotland’s richest men. But the oil tycoon later faced court
‘He’s a monster, a real nasty piece of work’
action over massive unpaid debts and was evicted from his mansion at Gleneagles, Perthshire.
He fled the UK after being declared bankrupt in 2016 and has since faced probes over his links with bankrupt firms.
The employment tribunal in Manchester heard Melville contacted I Need Pampering in October 2017, when its directors put it up for sale.
A report by the panel said: ‘Melville described himself on LinkedIn as “an entrepreneur with 30 years’ experience starting and running businesses from start-ups to 1,000+ people and companies”.
‘Melville emailed to say that he would only offer £50,000 to purchase the business. This offer was significantly under the asking price of £250,000.
‘Melville admitted to the respondent that he had a bad reputation but assured them he had the funds and ability to assist, and they noted he was charming and charismatic.’
The report added Melville initially indicated he would work from Scotland, but then said he had rented a property near their Manchester office.
It said: ‘He asked for a key to the office premises to enable him to go into the office at unusual times on his return from abroad. On January 29, 2018, Melville finally invested £4,500, not the £50,000 expected. The payment was made by Melville’s mother.’
Melville, the report said, ‘made no further payments’ and in February it became clear ‘he did not have the funds to invest but was running up bills in the [company’s] name, including that he had signed a lease agreement with BNP Paribas, holding himself out to be a director of the [company] to obtain a £4,000 photocopier.’
It was heard the directors later found out ‘Melville was in fact living in their offices’.
The report said Melville was asked to leave and when he refused, he was arrested.
The tribunal heard ‘this is not the first time Melville has been less than honest with business partners’.
Judge Sherrilyn Warren said: ‘Melville had led [the directors] to believe he was a man of substance.’
An I Need Pampering spokesman said: ‘He ran up huge bills. He has caused so much damage. We call him a monster. He’s a real con artist, a real nasty piece of work.’