Tuesday 20 September 2022 05:05 AM Hough Pharma family at war over Covid millions, rapid antigen tests, Gold Coast trends now
A young pharmaceutical mogul embroiled in a legal battle with his dad over their $108million Covid test empire was sentenced to jail for a string of drug offences before his family's company hit the jackpot.
Jackson Hough, 31, is accused of cutting his father, Gregory Hough, out of Hough Pharma Pty Ltd when sales rapid antigen tests started booming during the Delta wave in 2021.
Mr Hough senior, 58, lived in Sydney before moving to Queensland in the late '90s, but owns and operates the US branch of the company, Hough Pharma LLC, from his home in Houston, Texas.
The business was set up in Australia in September 2020 - about a year before RATs were commonplace - with Jackson, a former electrician with no healthcare experience, taking on the role of sole shareholder.
Hough Pharma subsequently landed international supply deals to import RATs from China, which were approved by the Therapeutic Goods Administration (TGA) for distribution in Australia in August 2021.
The explosion in sales triggered the fallout over ownership.
The case was reviewed in Brisbane Supreme Court on September 8, and will go a four-day trial from October 18.
However, Daily Mail Australia can reveal Jackson had a chequered history with the law before he landed a RAT empire.
Pictured: Jackson Hough, who ran the Australian branch of Hough Pharma, stood before a court for drug possession on multiple occasions
His charges, which were all heard in Southport Magistrates Court, date back to 2014 when he pleaded guilty to drug possession, driving without a licence, and having a knife in a public place at the age of 23.
He was ordered to do 120 hours of community service, was banned from having a licence for a month, and fined $700.
Three years later, in 2017, Jackson appeared before the court again - charged with five counts of drug possession, unlawful possession of a semi-automatic rifle, two centre fire action bolt rifles, a shotgun, and an air rifle.
He was sentenced to jail for six to nine months per offence, but was granted parole.
In August 2019, he pleaded guilty to a further five drug counts of drug possession, failure to properly dispose of needle and syringe, and possessing utensils or pipes.
He was sentenced to nine months behind bars per offence, but was again granted parole.
By September the following year, little more than a year after his last court appearance, Jackson was at the helm of Hough Pharma in Australia.
A year later, his father took him to court over the profits.
Greg Hough (pictured) used to live in Queensland but now runs Hough Pharma LLC from Houston, Texas
The multi-national legal battle is being fought across two court cases running in tandem - one in Brisbane's Supreme Court, and the other in Texas.
In an affidavit tendered in Brisbane's Supreme Court in May this year, Gregory Hough says he had a verbal agreement with his son to give the US company 75 per cent of the Australian business.
Mr Hough claimed that, before September 24 2021, he spoke with his son on the phone and agreed that he would mentor Jackson and eventually give him ownership of the company when he retired.
In the meantime, Jackson would receive $1 for each two-pack of RATs sold by the company in Australia, $1.50 for each five-pack, and $12.50 for each 25-pack.
In addition, Mr Hough claims he offered Jackson a 25 percent shareholding and asked that the remaining 75 per cent of stocks be sent to his US company.
However, Mr Hough claims his son sent the shares to one of his own companies instead - telling his father it was a 'workaround' to get Australian finance and would be reversed.
When Jackson told his father what happened, Mr Hough said, 'You can't do that' - to which his son allegedly told him not to worry and said he would transfer them back on Monday.
In a text message sent to the Hough distribution manager, Jesper Skade, on December 9 last year, Jackson said: 'Please don't stress, I'm not cutting you and dad out. That would go against everything I stand for and believe.'
'I wouldn't be able to live with myself'.
In Jackson's version of events, according documents tendered to the court on April 6 this year, the pair spoke on the phone in September 2021 - but he claims the conversation went a bit differently.
He says Mr Hough threatened to cut off his RAT supply
