American Richard Ayoub is facing fraud and proceeds of crime charges based on an alleged scam that duped retirees out of $2.8 million.
The 53-year-old had his Supreme Court bail application refused with Justice Stephen Rothman finding he was an unacceptable flight risk.
Prosecutors suggested that the money was not legitimate earnings from a business interest.
Rather, they argued the money was entrusted to him by retirees and he had used it for his own interests.
Charged with Fraud and Proceeds of Crime
Police laid 13 counts of dishonestly obtain benefit by deception and 13 counts of recklessly dealing with the proceeds of crime.
While he was in Australia on a working visa, he allegedly earned $2.8 million in just over a month.
However, police say that money was not legitimately earned. Rather, it was allegedly entrusted to him by retirees to buy bonds in Japan and the US.
"Police were told the would-be investors were duped into investing in fake bonds, mainly through self-managed super funds, by scammers posing as trusted financial institutions," a NSW Police statement read, following his arrest.
The Facts Sheet alleges that, in January and February 2021, the thirteen complainants invested between $24,000 and $500,000 each with Richard Ayoub. Prosecutors argue that he used this money to buy Bitcoin instead of putting it into bonds.
"He is the only one who knows where the Bitcoin has gone to; he is the last person who accessed the money. He has his fingerprints all over it...He has a private key," the DPP prosecutor told the NSW Supreme Court.
The Commonwealth Bank of Australia became suspicious of a $500,000 transaction in April 2021 and decided to freeze Mr Ayoub's personal account and that of his company, Radhanite Pty Ltd.
Supreme Court Bail Application NSW
However, it took over 8 months for him to be arrested at his apartment in Woolloomooloo in Sydney's inner east.
Richard Ayoub's Local Court bail application was refused, and he has remained in custody at western Sydney's John Morony Correctional Complex ever since.
Delivering the judgement for the NSW Supreme Court bail application, Justice Rothman described the case against him as "strong".
His Honour also added that Mr Ayoub was facing the prospect of a lengthy jail sentence.
Compensation for the missing $2.8 million is being sought, "which would provide a motive for leaving the country", Justice Stephen Rothman said in refusing the release application.
Wearing prison greens and a face mask, My Ayoub shook his head repeatedly when his bail application was rejected.
Richard Ayoub Background
Richard Ayoub lived at Woolloomooloo's luxurious Cowper Wharf Roadway. It has been alleged that he had a high-powered role in the glamorous world of diamond sales.
"I have [a] stellar record of identifying profitable business growth opportunities, designing and executing brand promotional strategies, and conducting market research," reads his LinkedIn profile.
"While others take pride in meeting all standards set before them, my passion is for delivering service that goes beyond organizational expectations, creating a win-win scenario for everyone involved!"
Fraud Lawyers
Fraud in New South Wales falls under the charge of 'Obtaining financial advantage or property by deception' pursuant to Section 192E of the Crimes Act 1900 (NSW).
The definition of fraud is acting dishonestly to cause a financial advantage or disadvantage.
In order for you to be found guilty of obtaining financial advantage by deception charges, the prosecution must prove beyond reasonable doubt that:
- You received property or a financial advantage, OR
- You caused a financial loss, AND
- The gain or loss was caused by your actions, AND
- Those actions were dishonest. Dishonesty is to be assessed according to standards of ordinary people and requires you to know your actions to be dishonest according to those standards. If an Accused's dishonest actions were not the main cause of the gain or loss then the charge will be dismissed.
If you have been accused of fraud, it is important to obtain advice from a specialist lawyer for fraud charges early on. Call Astor Legal on (02) 7804 2823. Or, you can email info@astorlegal.com.au. You can also read some recent cases where fraud charges have been dismissed by clicking here.
The maximum penalty for 'dishonestly obtain financial advantage or property by deception' is 10 years imprisonment when heard in the District Court.
Looking at statistics since 2018, 32% of persons found guilty of this offence were sentenced to some kind of imprisonment. 16% of persons were sentenced to full-time imprisonment. Only 10% of person received no conviction for fraud.
Jail is a real possibility and avoiding a conviction is not easy. Fraud is taken extremely seriously by the Courts. Having the right lawyer makes all the difference in the ultimate penalty you will receive.
