Alleged victim tells Mo Du’s court trial the accused deceived three Chinese investors into believing him
The alleged victim of an accused Chinese fraudster has told a court he believed everything he was being told – and was lied to about Australian law.
Police & Courts
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A Chinese investor who trusted a man to invest money into commercial properties in Adelaide has told a court the accused man, whom he believed wholeheartedly, used the funds for personal use despite being told not to.
Mo Du, 35, is standing trial in the District Court after he was charged with nine counts of deception for selling the commercial properties between 2014 and 2017.
Hongyu Zhao, 51, who was one of the Chinese investors, said he and his business partners trusted Mr Du given his uncle-nephew-like relationship with one of the other investors.
“At the time we believe everything that was told to us by Mr Du. I believed him,” he said.
Kosmas Lesses, for prosecution, said in his opening statement Mr Du is alleged to have “deceived the complainants by misrepresenting to them the price” of three properties – one at 157 Waymouth St in Adelaide, one at 79 Port Rd, Thebarton and one in at 9-11 Dequetteville Tce, Kent Town – and using funds for personal investments.
“A significant portion of the complainants’ purchase funds was allegedly on unrelated things like house purchases, expensive motor vehicles, personal expenses and large ATM cash withdrawals,” he said.
Mr Zhao, who had a 36 per cent share in the Waymouth St property, 28 per cent share in the Thebarton property and 34 per cent share in the Kent Town property, said Mr Du had told him, and the other investors, they couldn’t be the directors of the proposed companies.
“Over the course of the projects 2015-2017 what, if anything, did Mo Du say to you about being a director in an Australian company?” Mr Lesses asked.
“A foreigner cannot be the director of an Australian company,” Mr Zhao responded.
“Did you believe him?”
“Of course I believed him.”
Mr Zhao said by September 2017 there had been no progress on the proposed developments, which raised concerns.
“There were constant delays for the development plan but our payments were always in time and some of our, you know, instructions was not carried out, was not executed and, you know, the projects, the project planning was changed from time to time,” he said.
Mr Zhao said he and the investors had not planned to give Mr Du, or his business partner, wages until they were making a profit, nor did they give permission for the duo to use the money for personal use.
“When we make profits for the project we will – you know, we will give Mr Du and (his business partner), you know, the wages and remunerations in accordance with a certain percentage,” he said.
The trial before a jury continues.
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