FCA Australia is mired in a financial scandal involving a director who spent more than $20 million on a yacht and other luxuries.

There was a yacht, glamorous travel, Hollywood stars – and claims that he former head of Fiat Chrysler’s Australian operations misappropriated or misused as much as $30 million Australian, or US$23.1 million.

The automaker has launched legal proceedings against Clyde Campbell, along with a former associate in a scandal that has roiled the Australian business world. “The more we dug, the more we found,” an unnamed FCA source told the Down Under newspaper, The Age.

Rising through the ranks as part of the former DaimlerChrysler AG, Campbell was promoted to managing director of Fiat Chrysler Australia in October 2010. According to the automaker, the executive then began using the company as his personal piggybank, and he had help, Fiat Chrysler claims.

The alleged scheme came tumbling down just before the holidays last year when the Australian operation’s chief executive, Veronica Johns quit unexpectedly, citing “personal reasons.” The automaker brought in a 32-year veteran, Pat Dougherty, to take her place.

On his very first day, staff members started filling him in. “I walked into his office and let it all out. I don’t think he knew what hit him,” said another FCA source talking to The Age.

Despite having strict budget limits – Campbell was, for example, not allowed to travel first class, nor fly overseas without permission – he reportedly went on a series of lavish trips, including one to the Grand Prix in Monaco where he sipped champagne in a $5,000-a-head suite. There were other first class trips to New Orleans and Rio de Janeiro, visits to lavish spas and golf resorts.

And there was the yacht. Notes the story in The Age, “According to court documents, My Alfa Romeo was paid $550,000 by FCA to provide a ‘mobile outdoor floating billboard’ for the company. It is now alleged that Campbell used the money towards the purchase of a 40-foot Chris Craft boat valued at more than $400,000.”

There were also sweetheart deals that allegedly were meant to put money back into the pockets of Campbell and his friends. That included a $6.6 million contract for “website services” from a company largely owned by FCA’s marketing director. The company also wound up leasing a building in Sydney $145,000 a year for 10 years – property that was owned by a fund traced to Campbell and his wife.

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Meanwhile, Campbell also provided vehicles – without approval, the court documents claim – for Hollywood stars such as Elizabeth Hurley to use as “brand ambassadors.”

Complicating the tale, Campbell had become a close friend of Ernst Lieb, a once-high-flying star at DaimlerChrysler. Lieb’s career was cut short several years ago when he was accused of misusing funds while serving as CEO of Mercedes-Benz USA.

The FCA complaint suggests Lieb was involved in some of the questionable contracts now under investigation – but it is not clear the German executive is directly accused of wrongdoing.

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How could millions of dollars allegedly vanish despite supposedly strong financial controls?

“We were selling 8,000 cars a year when Clyde arrived, and that went to 34,000 cars a year, and while Clyde was getting results, questions were not being asked,” a company insider told The Age. “Everyone at head office was too busy putting together the Fiat merger.”

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It took a month for the auditors to plow through all the records before returning to Detroit. The evidence they’ve pulled together is the basis of the court suit against Campbell and may be used against others, including former CEO Johns.