The Irish Mail on Sunday has exposed that Doug Howlett, a celebrated figure in both the All Blacks and Munster rugby circles, has been directing funds from his charity foundation to support his own business ventures.
According to financial records from the Doug Howlett Foundation Charitable Trust in New Zealand, a staggering 98% of the foundation’s expenditures in 2023 went towards purchasing subscriptions for a commercial social media platform aimed at New Zealand schoolchildren—a platform owned by Howlett himself.
This platform, part of the Cybersmarties franchise, is designed to be child-safe. However, as the New Zealand franchise owner, Howlett personally profits from these financial allocations.
Similarly, across the globe in California, a charity established by two Cybersmarties shareholders has also been soliciting donations to fund the services offered by this Irish company.
Cybersmarties promotes its platform as a secure online environment for young children, created to combat cyberbullying and safeguard young users.
Nonetheless, a probe by MoS into this internet start-up, led by ex-children’s book author Diarmuid Hudner, has uncovered the following:
n Garda bosses allowed the force’s insignia to be used by Cybersmarties on a commercial basis for at least three years – the first and only time this occurred in the history of the State;
- The firm misrepresented itself as being a Unicef ‘global partner’;
- Cybersmarties’ claims to have dealings with the Vatican Bank were dismissed by its former president as ‘complete lies’;
- Creditors have filed a criminal complaint with the Garda National Economic Crime Bureau.
Rugby legend Howlett – a member of the Munster team that won the 2007/2008 Heineken Cup and the All Blacks’ top try scorer – held the post as the club’s head of commercial and marketing for two years before returning to New Zealand in 2019.
According to annual returns filed in the Doug Howlett Foundation Charitable Trust, it received NZ$80,819 (€41,482) from donations and fundraising in 2023.
It then provided NZ$58,668 (€30,112) of this sum in grants to schools to purchase Cybersmarties subscriptions for 1,342 students, 98 per cent of all the money spent by the charity that year.
Similarly, in 2024, the Foundation spent another NZ$6,552 (€3,363) of its remaining funds on grants to be used by schools to purchase Cybersmarties subscriptions.
Rugby legend Howlett – a member of the Munster team that won the 2007/2008 Heineken Cup and the All Blacks’ top try scorer – held the post as the club’s head of commercial and marketing for two years before returning to New Zealand in 2019
Former children’s author, Cybersmaties CEO Diarmuid Hudner
A related party disclosure note in the foundation’s returns states: ‘Doug Howlett sits on the board of Cybersmarties NZ Limited which provides services to DH Foundation Charitable Trust, of which Doug Howlett is an officer.’
The disclosure does not specifically identify that Mr Howlett is the 100 per cent owner of Cybersmarties New Zealand; his ownership means he stands to benefit from any purchase of the Irish parent firm’s services in his native country.
Under the charitable trust deed for Mr Howlett’s foundation, any trustee with an interest in any undertaking connected to the charity must declare this and not take part in any deliberations related to the interest they declare.
Marketing expert John Romano is a Cybersmarties shareholder based in California
Cybersmarties shareholder and Hollywood insider Philip Morton, pictured here with actress Dustin Quick
The deed also states that no ‘private pecuniary profit’ shall be made by any person involved in the foundation.
Mr Howlett did not respond to queries asking if he exempted himself from the decision to make grants to schools to purchase Cybersmarties subscriptions.
He also declined to say what profits Cybersmarties New Zealand may have achieved when schools purchased subscriptions via grants from his charity.
In recent weeks the rugby legend has publicly defended his charity’s spending and claimed the conflict was properly declared.
’It’s there in black and white,’ he told the New Zealand Herald. ‘We can follow the paper trail – funds directly to the schools for the product and the schools benefited from this product.
‘I can stand over this wholeheartedly that was for its purpose, which was to help New Zealand children.’
A spokesman for the New Zealand charity regulator, Charity Services, this weekend confirmed the matter is being looked at to determine if further inquiries are needed and said further clarification would be issued next week.
Cybersmarties CEO Mr Hudner told the Mail: ‘Mr Howlett has publicly addressed this matter, confirming that the arrangements were disclosed and entirely transparent.’
Cybersmarties Ltd also distanced itself from Mr Howlett’s New Zealand franchise, saying it operated as an independent company and had not directly received any funds from Mr Howlett’s charity.
The New Zealand charity was not the only non-profit entity benefiting a Cybersmarties operation.
A California charity founded by two shareholders of Cybersmarties Ltd also sought donations to fund Cybersmarties subscriptions.
The co-founders of US charity Elevated Life Solutions (ELS), include Hollywood insiders Philip Morton and John Romano.
A screenwriter and producer who began his career on Saturday Night Live, Mr Morton worked on films such as Fire Down Below, starring Steven Seagal. He also writes for news website Huffpost.com.
Mr Romano is a California marketing guru who says his clients include high-profile Oscar winners Michael Caine, Johnny Depp and Mel Brooks.
Both Mr Morton and Mr Romano are shareholders of Cybersmarties Ltd in Ireland – the company that controls Cybersmarties globally.
Irish Companies Registration Office records show Mr Morton bought two Cybersmarties shares on November 23, 2021, for €87,000 (€43,500 per share).
Mr Romano bought four Cybersmarties shares for €82,000 (€20,500 per share) on February 11, 2021.
Both Mr Morton and Mr Romano are also trustees of ELS, a non-profit entity registered with the US Internal Revenue Service (IRS).
Despite the apparent conflict of interest involved, ELS was seeking donations from the public – to be spent on Cybersmarties subscriptions – until last week.
On its website, the charity appealed for donations, saying it was a partner of Cybersmarties.
‘We have partnered with Cybersmarties, implementing their Secure Safe Social Network to protect millions of children worldwide,’ the appeal read.
‘Your donation of $12 a month protects six children for a year on the Cybersmarties platform and allows us to continue our expansion to protect the next generation.’
The US appeal was still being conducted by ELS despite losing its non-profit status years ago.
IRS records show the non-profit status of ELS was revoked last year because the charity failed to file three consecutive IRS returns.
Two weeks ago, the Mail donated a small sum to the ELS appeal and received a receipt.
‘Thank you for helping us to bring support where it’s needed, education where it matters and allow those in need to help themselves and #GetElevated,’ the receipt read.
After the MoS informed Cybersmarties Ltd about the matter and sought to contact ELS and its co-founders for comment, its website was pulled offline and our donation was refunded.
ELS and its co-founders did not respond to our queries in recent weeks. However, Mr Morton removed all references to ELS and Cybersmarties from his public LinkedIn account.
Mr Hudner acknowledged concerns about the matter.
‘I have only this week become aware of the issues relating to Elevated Life Solutions and immediately raised concerns,’ he said in a statement.
