Title Cambridge Analytica chief 'withdrew $8m' from embattled data firm shortly before its collapse - as he prepares to testify to MPs today over Facebook information-selling scandal
Text © Provided by Associated Newspapers Limited Alexander Nic has been recalled to face MPs today over evidence he gave them in February and also faces new claims over $8million withdrawn from Cambridge Analytica as the Facebook crisis started The polo-loving boss of Cambridge Analytica has today been accused of withdrawing $8million from the firm before its collapse because of the Facebook data scandal.
Alexander Nix is set to face MPs and may be asked about damaging new allegations about his handling of the crisis that engulfed the London-based company this year.
Mr Nix allegedly withdrew the cash just after the British media revealed Cambridge Analytica was selling data mined from millions of Facebook members.
The new allegations over a $8million loan came from disgruntled shareholders who say Mr Nix must repay the money to CA staff and investors.
© Provided by Associated Newspapers Limited Mr Nix (right) faced a worldwide media storm in March after he was secretly filmed appearing to suggest the firm use 'beautiful' Ukrainian sex workers to seduce politicians (pictured)
These critics, who have spoken to the Financial Times, say Mr Nix and other bosses set up a new company called Emerdata as part of a plan to rebrand CA and its parent company SCL whose reputations have been badly tarnished.
Emerdata raised $19million from investors around the world but the money ran out and insiders claim $8.2million was sent to CA in the form of a loan.
Bankruptcy documents filed in New York seen by the newspaper show that the cash is classed a 'non-priority' and may never have to be paid back.
The FT has reported that Nix has indicated he will pay back some of the money, said to diverted for unpaid services, but he is facing pressure to return it all. He has not yet responded to the allegations.
© Provided by Associated Newspapers Limited Mr Nix, a polo loving millionaire (pictured centre), was suspended from the company and has not commented on allegations about the $8million loan
Mr Nix faced a worldwide media storm in March after he was secretly filmed appearing to suggest the firm use 'beautiful' Ukrainian sex workers to seduce politicians as part of its lucrative election work.
He was also recorded boasting about the firm's work during the Donald Trump presidential campaign, saying: 'We did all the research, all the data, all the analytics, all the targeting, we ran all the digital campaign, the television campaign and our data informed all the strategy.'
Nix said its data on voters wins elections and his company made huge sums working with politicians around the globe.
There were calls for Facebook founder Mark Zuckerberg to resign and he saw £5.3billion wiped off his £48billion personal fortune yesterday due to a plunge in the social media company's share price.
© Provided by Associated Newspapers Limited Mr Nix has been summoned to Parliament "clarify his original evidence" after he declined to turn up in April
Since then Zuckerberg has been forced to apologise and try to rebuild trust with users about the safety of their data.
Alexander Nix is at Parliament today and has been recalled to give evidence to an inquiry into fake news. The businessman first appeared before the Digital, Culture, Media and Sport (DCMS) Committee in February.
Weeks later CA was suspended by Facebook amid allegations it amassed data on millions of voters from their profiles and misused it.
Among the allegations were claims the information was used to target voters during Donald Trump's 2016 presidential election campaign, while a whistleblower has claimed the firm had links to pro-Brexit campaigners.
© Provided by Associated Newspapers Limited Mark Zuckerberg's fortune and reputation have been badly damaged by the scandal, pictured facing Congress where he issued a humbling apology
On Monday, the head of Britain's data watchdog said she was 'deeply concerned' about the impact on democracy of the misuse of social media users' personal information.
The committee first recalled Mr Nix to appear before them on April 18 to 'clarify his original evidence'. After agreeing to attend he then declined, but he was issued with a formal summons by MPs.
The scandal that erupted around CA's alleged misuse of Facebook data saw the social media giant's chief executive, Mark Zuckerberg, issue a series of public apologies.
The billionaire went before the US Congress and has been asked to appear before the DCMS committee.
Chairman Damian Collins wrote to Facebook on May 1 after Mike Schroepfer, the network's chief technology officer, spoke to the committee.
Mr Collins said his evidence 'lacked many of the important details we need' and re-stated Mr Zuckerberg's invitation.
'It is worth noting that, while Mr Zuckerberg does not normally come under the jurisdiction of the UK Parliament, he will do so the next time he enters the country,' Mr Collins wrote.
'We hope that he will respond positively to our request, but if not the committee will resolve to issue a formal summons for him to appear when he is next in the UK.'
Information Commissioner Elizabeth Denham told the European Parliament's inquiry into the CA affair that legal systems had failed to keep up with the rapid and unforeseen development of the internet.
Ms Denham said that her office's investigation, triggered by allegations of misuse of Facebook users' personal data, was 'unprecedented in its scale' and thought to be the largest undertaken by any data protection authority in the world.