In a judgment handed down on Friday, NSW Court of Appeal Justice Carolyn Simpson dismissed a bid by Care A2 Plus Pty Ltd for a $2.2 million freezing order against former Sports Flick accountant and CFO Karla Pichardo, pending the outcome of the appeal.

Care A2 argues NSW Supreme Court Justice Ashley Black was wrong to find Pichardo was not involved in a dishonest scheme by sole director Dylan Azzopardi over the rights to stream and broadcast the 2021 Rugby World Cup. 

Care A2 claimed there was evidence that Pichardo had been dishonest and there was a risk she would try to avoid judgment. But Justice Simpson found there was no evidence she might dispose of her assets, which include a Sydney property valued between $690,000 and $870,000 that was not listed for sale. 

“None of this persuades me that [Care A2] have a “good arguable case” to disturb the findings of fact made by the primary judge,” the judge said.

“I am not persuaded that [Care A2] have established that there is a danger that, should [they] be successful on their appeal, any judgment will be wholly or partly unsatisfied.”

Pichardo was a shareholder of the defunct Sports Flick, a streaming platform owned by DCA Enterprises Pty Ltd, where Azzopardi was the sole director and his brother, Justin Azzopardi, was the secretary.  Care A2 was an investor in DCA Enterprises.

In early 2021, the Azzopardi brothers negotiated with a UK company RDA Sports Media Rights for rights to stream and broadcast the 2021 Rugby League World Cup for $5 million, the court heard. 

Care A2 alleged that the Azzopardis and Picardo engaged in deceptive and deceitful conduct by saying the licence for the RWLC streaming rights cost $9 million. Care A2 also claimed DCA’s executives misled it about profits that could be achieved by licensing the rights to the Australian Hotels Association.

It claimed that Azzopardi had fabricated a contract showing the licence fee was $9 million so that Care A2 would invest more money. Care A2 alleged they paid significant sums of money to DCA under a false understanding of the value of the streaming rights. 

The primary judge ruled in January that Dylan Azzopardi engaged in misleading or deceptive conduct and deceit. But Justice Black did not find the allegations were proven against Justin Azzopardi or Pichardo. He gave judgment of $2 million against Dylan Azzopardi. 

Care A2 filed an appeal against the judge’s dismissal of proceedings against Pichardo and Justin Azzopardi, alleging among other things that he failed to find Pichardo was knowingly concerned in Dylan Azzopardi’s deception. 

Care A2 claimed Justice Black overlooked correspondence from Pichardo to Care A2 that contained a five-year financial projection that showed the fees for the RWLC were $9 million, claiming the accountant knew that was false. The primary judge found it was sent at Dylan Azzopardi’s request and did not cause any loss to Care A2. 

Justice Black also erred by failing to consider Pichardo’s email to Care A2 in May 2021 that referred to the fabricated contract, claiming the accountant knew the agreement was a forgery, according to Care A2. 

Care A2 also claimed the judge failed to consider an email in June 2021 by Pirchardo attached to which was a bank receipt showing DCA had transferred $4.5 million to RDA, which had never occurred. 

It also argued the judge failed to consider a further email in June 2021, in which Pichardo pressed for payment so DCA could pay RDA the licence fee, saying at least $6 million had to be paid. Care A2 said this was not correct because the total due to RDA was only $5 million.

Pichardo said in cross-examination at trial that the source of the information was Dylan Azzopardo but conceded she knew the correct licence fee was $5 million, the court was told.

Dylan Azzopardi has been arrested on charges he used fraudulent documents to receive $2.1 million in funding to bid on filming rights for the Rugby League World Cup, according to a statement by the NSW Police in January.

Founded in 2019, Sports Flick offered viewers options such as broadcasts of the UEFA Women’s Champion League, European Baseball Super League, European Handball, Indian Baseball, Panama Baseball, International Rugby League and Future Wrestling Australia through its subscription services.

Metri Legal principal Matt Metri, who represents Pichardo, told Lawyerly on Monday he was pleased with the outcome of Care A2’s motion.

“A freezing order is a drastic remedy which should not be granted lightly. It imposes a severe restriction upon a [party’s] rights to deal with his or her assets. The function of any such order is not to provide a claimant with security in advance,” he said.

“The appellants failed in their claim at trial as against the first respondent, Karla Pichardo. The appellants have not demonstrated by evidence that the first respondent has acted in a way that there exists a real risk of assets being dissipated.”

Care A2 is represented by Adam Butt, instructed by Nelson McKinnon. Pichardo is represented by Anthony McQuillen, instructed by Metri Legal.

The case is Care A2 Plus Pty Ltd v Pichardo.

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