Travel agent Arthur Zacharias defrauded boss, clients and bikie in Ponzi scheme

A former travel agent who defrauded holiday-makers and a bikie boss in a Ponzi scheme which came unstuck will await sentencing behind bars.

Arthur Zacharias outside Adelaide Magistrates Court in a previous appearance.

A former travel agent who operated a Ponzi scheme which defrauded the owners, clients and a former Hells Angel bikie boss has had his bail revoked ahead of sentencing, a court has heard.

Arthur Zacharias appeared in the District Court on Thursday where victims delivered impact statements describing his deceit as cruel and morally reprehensible.

The 49-year-old of Parkside previously pleaded guilty to multiple dishonesty and deception offences including 19 counts of dishonestly dealing with property without consent between December 2014 and May 2016 at Fullarton.

He committed the offences while contracted to Axis Travel Centre, which he later sought to part purchase from owner Max Najar – using a silent partner – for $385,000.

The silent partner, former interstate Hells Angels member Peter Sidirourgos, had paid the money to Zacharias in instalments, but the court heard Zacharias spent “nearly all” of that money and only about $100,000 was passed on to Mr Najar.

Mr Najar, the main victim of the offences, told the court how Zacharias’ “orchestrated and cruel” deceit had stolen almost five years of his life and ruined his proud company.

He said Zacharias had repeatedly begged to be employed and he gave him a second chance, employing him as a contractor.

Mr Najar told the court he felt humiliated and embarrassed by Zacharias’ crimes which resulted in significant financial trauma amounting to more than $596,894 as well as lost time and health issues.

“What you did to me, my family, my business, my valued clients, my trusted suppliers and the entire travel industry is morally reprehensible, especially as you have displayed no sincere regard, concern or remorse for what you intentionally and strategically perpetrated in pursuit of your selfish actions,” Mr Najar said.

“You designed the deliberate and methodically constructed webs of deceit that you wove to capture the innocence and trust of not only myself but that of my staff and my valued clients and my suppliers without any thought of the consequences and lifetime pains and sufferings that your crimes would cause.”

Max Najar, director and manager for Axis Travel Centre, outside the District Court after reading a victim impact statement about Arthur Zacharias, a contract travel agent who defrauded hundreds of thousands from his clients. Picture: NCA NewsWire / Naomi Jellicoe

Mr Najar described having to drain his family assets to rescue stranded clients and repay clients and suppliers.

“You have ruined my proud company by forcefully imposing your illegal acts upon me, stealing my pride, causing me emotional trauma and embarrassing my professional standings. I feel ashamed and guilty in allowing myself to be conned by you as you casually progressed with your illegal activities.”

Other victims described feeling distress, helplessness, hopelessness, anger and frustration at being strung along by Zacharias and losing money which they saved to pay for long-awaited dream holidays that were never booked.

Peter Longson, prosecuting, described Zacharias’ offending as a Ponzi scheme, where he would use money paid by clients for travel in the future to cover the travel costs of previous clients, whose money had already been squandered.

“Like all Ponzi schemes it eventually falls over,” he said.

“He made one way bookings for people to Europe, clearly gave them an itinerary that had a return flight … and some of those people were elderly solo travellers, Greek people returning to see family for one more time,” he said.

Mr Longson said those victims would arrive at an airport for their return flight to Australia to discover no flight had been booked.

“From beginning to end of this Zacharias had lied to everybody involved … including the silent partner,” he said.

“He had the money to purchase the business and he didn’t. It showed that he was prepared to deceive anybody at all for his own gain.”

He said Zacharias used “an awful lot” of the money to cover his personal bills including purchasing alcohol or fuel.

Mr Longson said Zacharias “has not paid one cent in reparation”.

The court heard the offending was in breach of a suspended good behaviour for prior fraud offences relating to false social security payments.

Jon Lister, for Zacharias, said the majority of his client’s offending occurred when he found himself in financial trouble linked to purchasing a part of the business.

Judge Simon Stretton revoked Zacharias’ bail, saying his crimes were “so serious and so relentless over time” against a backdrop of prior fraud offences.

He will sentence Zacharias next month.