Michael Nugent: From grease pit to pyjama parties at Hugh Hefner’s mansion. Nugent also fancied himself as a film director and set up a company called Fire from Ice Films, claiming top actors - whom he had met at Hefner's mansion in Los Angeles - were interested in appearing in a film all about himself. Nugent, his son and co-directors were photographed at the mansion in 2008, partying with the playboy's guests. Nugent also told people he had clearance from NASA to speak to its top scientists about his fabled engine. But Nugent's business empire is a charade. The Australian Securities and Investments Commission has twice taken action against him for illegal fund-raising and deceptive conduct. The Supreme Court of Queensland ruled that his magnetic engine does not work - and cannot work. The Queensland Court of Appeal upheld that decision. And now dozens of angry shareholders have banded together in the hope of forming a class action to win back their lost money. Nugent's other ventures, a road and sea shipping integration concept, which has had a variety of companies with variations of the name Roadships, are also a charade. The Sunday Age visited the office address and supposed truck depot for the Roadships business at Chipping Norton advertised on the websites. The premises were vacant and the telephones cut off.

A former co-director, employee and shareholder, Lismore farmer Don Greene, was taken in by the magnetic engine concept. He says the ''light came on'' for him when he realised that there was no magnetic engine and the Roadships business - which advertises the development of ships, trucks and transport depots around the country - had no depots, no ships and only one ute. Nugent has taken legal action against Mr Greene over their falling out. Businessman Peter Hanmer, who also invested in Nugent's companies, said he has taken legal action to get back a $20,000 deposit he paid for shares he never received. After working as a diesel fitter, Nugent began a trucking firm in Adelaide, which is now deregistered. He then started a variety of companies including Roadships Inc and the Cycclone Magnetic Engine business with other partners. He started fund-raising for Roadships and spruiking the magnetic engine, but his business partners became suspicious when he started living the high life with expensive furnishings, a new car and jewellery. They called ASIC. ASIC took its first action against him in 2001 in the Queensland Supreme Court for illegally fund-raising for Roadships Ltd, forcing him to stop. The company was liquidated in 2002. The ASIC website reports the Supreme Court of Queensland found that Roadships had unlawfully issued shares and spread false and misleading statements.

But that did not stop Nugent from forming the Cycclone Magnetic Engines Inc company in the US. Once again he was prosecuted by ASIC in 2007 in the Supreme Court in Queensland for misleading or deceptive conduct. The company, based in the US, operated on the Gold Coast and at Lismore. It raised more than $1 million from investors for the engine, which the court found, in March 2009, ''could not work''. The Supreme Court made injunctions permanently stopping Cycclone Magnetic Engines from engaging in misleading or deceptive conduct by representing on a website that the engine worked. It also stopped the company from claiming that acquiring its shares would be an investment in proven technology. But Nugent is still advertising the magnetic engine on a US website. And he is sending newsletters to potential investors, saying Cycclone Magnetic Engine has a ''commitment'' with Alan Jones's supercar and to license, assemble, manufacture, service and manage sales for the new car. When Nugent discovered The Sunday Age was making inquiries, he sent letters to the newspaper, threatening legal action. But when called and asked questions, Nugent said he would not comment. He said he had done his own homework on this reporter and ''could join the dots''.

''Game on,'' he said. ASIC said it was aware of concerns and encouraged investors to report misconduct via their online form.