Alleged fake salary payments, self-dealing as Vinyl answers Luke Girgis
Details of alleged misconduct by the former managing director of The Brag, Luke Girgis, have come to light in court documents filed as part of his contractual dispute with Vinyl Group. The allegations include making fake salary payments in order to get a bank loan, and funnelling an appearance fee for Poppy Reid to his own talent agency rather than to the Vinyl Group.
Girgis sued Vinyl after he was dismissed as MD last year, claiming he was unfairly denied a $2 million performance payment that had been part of the sale conditions of The Brag Media. Girgis co-founded The Brag Media in 2017 as a popular music and culture publisher, before selling to the rapidly expanding Vinyl Group in January 2024.
However, Girgis was sacked within 6 months. His case in the NSW Supreme Court alleges the dismissal was “without cause”. It prevented Girgis receiving a substantial payment that would have fallen due in December 2024, based on certain conditions being fulfilled. The maximum payment was $2 million.
Luke Girgis
Vinyl has answered Girgis’ claim with an array of alleged misconduct that it says prove his contract was terminated for good reason.
Vinyl said that before the sale of The Brag to Vinyl, Girgis made sham transactions so that it appeared he was receiving a $440,000 salary. He allegedly did this to convince a bank to give him a home loan.
“Mr Girgis knowingly and intentionally presented the Sham Transactions to National Australia Bank for the purposes of fraudulently obtaining a loan for the purchase of the property,” Vinyl said in a case document seen by Mumbrella.
In the case of music journalist Poppy Reid, Vinyl alleges Girgis failed to disclose a conflict of interest arising because he managed her through his talent agency while she was also a full-time employee of Vinyl.
Reid appeared in an ad for Stan in 2024. Vinyl said that instead of the $10,560 fee for that appearance going to its business, the money was paid to Girgis’s talent agency.
Vinyl also claimed that Girgis gave free promotion through Vinyl to acts he managed, comedian Christian Hull and musician Neish.
“As Mr Hull’s manager, Mr Girgis has obtained an indirect benefit from the increase in Mr Hull’s profile and income-generating capacity by reason of the Hull Services,” Vinyl’s submission reads.
Vinyl alleged that Girgis gave an EDM list of around 250,000 Vinyl subscribers to Providoor, a gourmet restaurant delivery service, in April 2024. It says that Providoor then sent over 100 spam emails to the subscribers. Girgis is now CEO of Providoor.
Josh Simons
There are other allegations, including that Girgis employed his sister as an assistant even though she had no relevant experience, and that he disparaged Vinyl CEO Josh Simons and “undermined the effective leadership of [Vinyl, and] created an atmosphere of distrust and discord among the senior executives.”
Within Vinyl’s submission are records of Girgis denying several of the allegations, which it argues constituted a further breach of his duties.
Vinyl, which is backed by Wisetech billionaire Richard White, has seen several high-profile departures since The Brag purchase. Girgis’ replacement Jessica Hunter left in January and subsequently claimed unfair dismissal. That claim has been resolved.
The Girgis case is scheduled to be heard in the NSW Supreme Court on June 6.
Should be an entertaining Court case as they press the Mutually Assured Destruction MAD button.
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