Firepower International

Firepower International
Company type	Private
Industry	Fuel additives, environmental technology
Founded	December 2004
Founder	Tim Johnston
Headquarters	Perth, Australia
Products	Firepower Pill (fuel additive)

Adapted from the English Wikipedia article Firepower International, available under CC BY-SA 4.0Updated 30 November 2025

Firepower International was a deceptive enterprise purporting to be a Hong Kong branch of Global Fuel Technologies Ltd, promoting innovations aimed at decreasing fuel usage and lowering environmental harm caused by petrol-powered vehicles. Although it claimed to have offices in locations such as Sydney, China, Rhodes, Athens, and Papua New Guinea, the company was in reality managed by a small team based in an industrial area of Perth. The initial company—Firepower Operations Pty Ltd—was registered in December 2004 as an A$1 entity and was owned by Firepower Holdings Group Ltd, which was headquartered in the British Virgin Islands.

By utilizing relationships with Australian federal ministers and international dignitaries, Firepower persuaded governments including those of Britain, Russia, and Romania that it offered crucial solutions to issues like global warming and the peak oil dilemma. Nevertheless, after skepticism arose regarding the actual performance of the "Firepower Pill," founder Tim Johnston was publicly accused of orchestrating a large-scale confidence fraud and became subject to investigation by the Australian Securities and Investments Commission (ASIC). In July 2011, ASIC imposed a twenty-year ban preventing Johnston from managing any company.

Firepower Pill

The principal product promoted by Firepower International was the Firepower Pill, advertised as capable of "reducing fuel consumption, cutting emissions, [and] cleaning and maintaining your engine." The product claimed to enhance fuel efficiency by enabling the combustion of "more of the heavier elements" within fuel, thereby boosting power output while lowering hydrocarbon and carbon dioxide emissions. One pill was marketed as sufficient to treat up to 60 litres of petrol, with a larger variant said to be effective for 200 litres of petrol or diesel.

Government involvement

The Australian government became implicated in the controversy through its defence departments, Austrade, and lobbying directed at federal science minister Julie Bishop and then-Prime Minister John Howard. Johnston reportedly promised substantial donations to the Liberal Party and pursued funding from the government’s A$500-million Low Emission Technology Demonstration Fund. TPS Firepower, an affiliated company, received close to A$400,000 in export grants.

Austrade played a pivotal role; despite failing basic due diligence checks, it endorsed Firepower as a client and helped establish international contacts through Australian diplomatic missions. Firepower obtained $394,000 via the Export Market Development Grants program. Several individuals connected to the government were brought into Firepower’s management: senior Austrade official John Finnin took on the CEO role, while senior trade commissioner Gregory Klumov managed operations in Russia. This association with government figures contributed significantly to Firepower’s perceived legitimacy for an extended period.

Sporting sponsorship

At its height, Firepower ranked among Australia's top sports sponsors. However, as financial troubles escalated, sponsorship deals were withdrawn abruptly, leaving teams struggling financially.

The Sydney Kings, a basketball team partly owned by Tim Johnston, folded following Firepower’s downfall. Players were left with unpaid wages and superannuation obligations estimated at A$265,073.

The Perth-based rugby union club Western Force had been promised multimillion-dollar funding that never materialized, resulting in the departure of key players such as Matt Giteau.

In 2006, the rugby league club South Sydney Rabbitohs was purchased by business partners Russell Crowe and Peter Holmes à Court. On 5 November that year, Crowe revealed on The Tonight Show with Jay Leno that Firepower would back the Rabbitohs with a sponsorship deal worth A$3 million over three years. Crowe showcased a Rabbitohs jersey emblazoned with Firepower’s logo. Holmes à Court described Firepower as an Australian success story operating across more than 50 countries and rapidly expanding into new markets, positioning it as a global leader within its sector.

Controversy and collapse

Following an unsuccessful initiative backed by the Australian government in October 2006 to set up headquarters in Switzerland, founder and CEO Tim Johnston moved to the United Kingdom. He remained out of the public eye for nearly two years until The Australian newspaper tracked him down in London.

Legal proceedings

In 2007, the Australian Securities and Investments Commission (ASIC) launched an investigation into Firepower for raising "$60 million without sufficient financial disclosures to investors." ASIC pursued court injunctions aimed at preventing Johnston—who had departed New Zealand under contentious circumstances during the mid-1990s—from managing companies within Australia. On 21 July 2008, ASIC initiated legal action in the Federal Court of Australia against entities connected to Gordon Hill, Warren Anderson, Leslie Stein (Sattvic Pty Ltd), and financial advisor Quentin Ward, who reportedly sold more than A$40 million worth of Firepower shares in Perth. Subsequently, Ward was prohibited from company management for six years. Anderson’s firm Owston Nominees allegedly received 40 million one-cent shares in Firepower’s Virgin Islands parent company, Firepower BVI, in June 2005; these shares were later sold for up to 50 cents each. In March 2010, former Western Australian Labor minister Gordon Hill faced a A$5 million lawsuit and declared bankruptcy.

Skepticism over product

Doubts emerged regarding the actual effectiveness of the Firepower Pill. Analysts highlighted Firepower’s refusal to explain the product’s mechanism and noted its resemblance to the FE-3 pill, which had been independently demonstrated as ineffective in improving vehicle performance.

Testing by the former Western Australian Department of Consumer and Employment Protection raised "serious concerns about the legitimacy of claims" related to fuel economy and emission reductions attributed to the pill. As a result, the department mandated removal of the product from sale in Western Australia alongside other unverified fuel-saving devices.

In reply, Firepower claimed that prestigious organizations—including military forces from Australia and New Zealand and a V8 supercars team—utilized its product, despite V8 Supercar regulations prohibiting fuel additives. These assertions were denied by the mentioned parties. Additionally, Firepower informed shareholders it was engaged in joint ventures with Shell and General Motors; both corporations publicly rejected these statements.

Compromising documents discovered on computer

On 28 February 2009, The West Australian revealed that thousands of internal Firepower files had been recovered from a computer abandoned prior to the company's multi-million-dollar downfall in 2007. The device, believed to have served as the internet server for Firepower’s Perth office, contained extensive emails and documents involving Tim Johnston, executives, and employees. The computer was acquired at auction by a local internet café proprietor for A$40.

Among the uncovered materials were:

company cheque records showing a A$10,000 "gift" to Pakistan’s President General Pervez Musharraf
indications of formal high-level endorsement of Firepower products through Austrade offices during the Howard administration
ongoing attempts to establish connections with senior government and military officials to facilitate agreements, with recognition that such consultants required "looking after"

Federal Court Proceedings

In July 2008, Firepower's Australian division was placed into liquidation through the Federal Court of Australia, followed by the liquidation of its British Virgin Islands subsidiary in September. This legal action was initiated by the company’s legal representatives over an outstanding debt of A$70,000 and was subsequently supported by mining entrepreneur Ross Graham, who had extended a loan of A$25 million to Johnston. The appointed liquidator, Bryan Hughes, asserted that the company had been conducting business while insolvent since 22 July 2007. He further claimed that Johnston concealed up to A$38 million in offshore accounts with the intention of using these funds to launch a similar entity named Green Power Corporation. As of July 2008, Firepower Operations acknowledged liabilities exceeding A$16 million owed to creditors, investors, and sponsorship partners.

Australian Securities and Investments Commission

The Australian Securities and Investments Commission (ASIC) initiated legal proceedings against Owston Nominees No 2, controlled by Warren Anderson, for distributing Firepower shares to retail investors without issuing a prospectus, resulting in gains of approximately A$20 million. Anderson publicly called on Johnston to confront his critics. On 8 February 2011, ASIC successfully obtained declarations and publicity orders from the Federal Court for breaches of section 727(1) of the Corporations Act. Subsequently, on 18 August 2011, comparable orders were granted against Sattvic Pty Ltd, managed by Leslie Stein.

In September 2014, ASIC completed its inquiry and referred evidence to the Commonwealth Director of Public Prosecutions (CDPP). However, the CDPP concluded that there was insufficient likelihood of securing a conviction under the Commonwealth Prosecution Policy, effectively ending any prospects for criminal prosecution.

Johnston’s Return to Australia

Since Johnston was never formally charged with fraud, ASIC lacked the necessary criminal grounds to seek his extradition. Consequently, he remained outside Australia to avoid shareholder confrontations. Nevertheless, Johnston returned to Australia on 2 November 2009 reportedly for family reasons. On 5 November, the Federal Court imposed an order preventing him from leaving the country, requiring him to surrender all passports and mandating his appearance at a Perth court hearing scheduled for 26 November. The injunction was served at his residence on the Gold Coast. Johnston complied by handing over two passports but failed to attend the court hearing, citing health concerns and fears for his safety. The hearing was postponed with arrangements made for him to participate via video link from Queensland.

There were allegations that Johnston attempted to restore his reputation in England by presenting a purported letter from ASIC asserting that he had acted appropriately under a non-existent "Corporate Guideline Act." ASIC denied issuing such a letter.

On 8 December 2009, Johnston appeared before the Federal Court in Perth where liquidator Bryan Hughes examined him. Prior to questioning about financial dealings—including payments related to family travel and the acquisition of his Mosman Park residence—Johnston was served with legal documents. He claimed that associate Warren Anderson had compelled him to purchase the property and asserted that Anderson forced him to transfer A$4 million into Anderson’s family company Owston Nominees before receiving a loan of A$5.8 million from Owston Nominees to finalize the purchase.

Johnston’s wife Sandra and their two daughters later joined him. Sandra had fled to Bali after Johnston’s passports were confiscated due to concerns over her potential liability as a company director between 2005 and 2008. She resided in a villa financed with Firepower funds and reportedly experienced intimidation attempts. Johnston informed the court he personally faced threats from Anderson, who allegedly employed certain individuals for intimidation purposes.

Ross Graham

In 2008, mining businessman Ross Graham obtained a Western Australian Supreme Court directive demanding immediate repayment exceeding A$12 million on a loan he had personally guaranteed. Graham threatened to initiate bankruptcy proceedings if the amount remained unpaid, although he recognized that the chances of full recovery were limited.

IMF (Australia)

A number of small-scale Australian investors reportedly suffered losses amounting to A$100 million due to a handful of entrepreneurial investors and advisors who purchased Firepower shares at low prices and later sold them at substantial profits. On 3 June 2009, The West Australian revealed that former Western Australian police minister Gordon Hill was facing a $5 million lawsuit—the first legal action initiated by investors attempting to recover funds from the defunct fuel technology firm Firepower. This lawsuit, representing 79 investors and filed by litigation funder IMF (Australia), emphasized that investors had acquired shares in Firepower Holdings Limited (registered in the Cayman Islands) but were instead issued shares in Firepower Holdings Group Limited (registered in the British Virgin Islands).

Additional defendants included private companies linked to property magnate Warren Anderson and Sydney-based attorney Les Stein, both significantly involved with Firepower. IMF’s managing director Hugh McLernon projected that recovery efforts might reach approximately $40 million, though he anticipated difficulties beyond that figure.

On 17 September 2010, IMF lodged a second writ in the Western Australian Supreme Court on behalf of 242 investors pursuing over A$5 million from Les and Miriam Stein’s family enterprise Sattvic; up to A$26 million from Fremantle solicitors Matthew Morgan and Stefan Alteruthemeyer along with their firm Maclma; and around A$8 million from the National Australia Bank. Paul Rainford, IMF’s investment manager, indicated intentions to initiate a third lawsuit targeting a Singapore-based company, aiming to recover a cumulative total of A$60 million across all proceedings. Johnston and Anderson were excluded from these actions due to probable insolvency.

Johnston declared bankruptcy in 2011. Subsequently, on 19 May 2012, liquidator Pitcher Partners discontinued efforts to pursue Johnston, while managing director Bryan Hughes remained owed more than $100,000 for investigative work. Forensic accounting firm Worrells Solvency & Forensic Accountants contacted all creditors, including Hughes, requesting additional financial contributions.

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