Chrysler Detroit Investigating Former Chrysler Australia CEO Australia's Expense Account.

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"The lavish spending of former Fiat Chrysler Australia bosses Clyde Campbell and Veronica Johns included buying designer handbags costing thousands of dollars for members of staff.

Fairfax Media can reveal a number of staff members were gifted Louis Vuitton handbags after Ms Johns attended an event at the company's store at Crown Melbourne.

According to internal Fiat Chrysler Australia documents, Ms Johns ran up an $11,000 bill during one stay at Crown Towers, including multiple treatment sessions at Crown's luxurious spa facility. That bill was charged back to Fiat Chrysler. Ms Johns and her husband, Gregory Hede, live in Melbourne.

Other expenditure included a budget of $500,000 authorised by Ms Johns and Mr Campbell to fund a Fiat Abarth racing team to compete at the Bathurst 12-hour race last year. The venture ended up costing Fiat Chrysler more than $800,000.

Mr Campbell and Mr Hede competed as race drivers. Fiat Chrysler is believed to have paid the cost of training for Mr Campbell and Mr Hede to obtain their racing licences.

Under Mr Campbell and Ms Johns, Fiat also spent an estimated $1 million at Crown Palladium each December on a staff Christmas party.

Fiat Chrysler booked an estimated 100 rooms and suites at both Crown Towers and Crown Promenade hotels for staff and their partners, brand ambassadors and selected media for that party.

"The spending was out of control," said one former staff member. "And anyone who questioned it was shown the door."

Last week Fairfax Media revealed that Fiat Chrysler Australia is suing Mr Campbell, who has been accused of misappropriating and misusing more than $30 million in company money to fund an extravagant lifestyle for his family and business associates.

The allegations made in a Federal Court lawsuit filed by Fiat Chrysler also include claims directly or indirectly used to pay for a $400,000 yacht, a plane, trips to New Orleans and Rio de Janeiro, a golf and spa holiday in New Zealand, luxury villas in Crown Casino, Victorian Racing Club memberships worth $244,800, and more than $380,000 in gift vouchers.

Since then, further details of the lavish expenditure has emerged from a forensic examination of Fiat Chrysler's accounts.

A audit team has been flown in from Fiat Chrysler head office in Detroit to run the examination of the company's books

"They are sitting in a separate part of the office and have absolutely no day-to-day dealings with the staff," said one member of the Fiat Chrysler team based at the Port Melbourne headquarters. "Every once in a while we have to answer questions from them, but it's otherwise an independent investigation."

Solicitor Sam Bond said Mr Campbell's position was that "the allegations in the statement of claim are not only completely denied but considered scandalous".

"We are confident that, in due course, the allegations will be shown to be wrong and will be embarrassing for FCA," Mr Bond.

"The fact that internal politics within FCA has caused it to want to tarnish the name of Mr Campbell who took the business to enormous levels of growth is as unfortunate as it is unfair."

Ms Johns has not responded to questions from Fairfax Media."
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