Joel Ernest Donaldson charged over $500,000 fraud scheme

Two men accused of gaining more than $500,000 from a fraud scheme after allegedly enticing their victims to invest in an international escort company have been named.

Joel Ernest Donaldson had his bail refused on April 18 in Maroochydore Magistrates Court.

A man has been refused bail after he was arrested over a six-figure scam after he and his co-accused lured their victims to invest in escort businesses.

Joel Ernest Donaldson applied for bail in Maroochydore Magistrates Court on Thursday, April 18, after he was charged with three counts of fraud by dishonestly obtaining property and two of fraud by obtaining property worth more than $30,000 but below $100,000.

Court documents stated Mr Donaldson and his co-accused Jason Trent Davenport - who was named the “primary offender - gained a sum of $521,936 by scamming nine victims between 2016 and 2021.

Mr Donaldson - who first became involved in 2018 - has been charged for his involvement against seven victims totalling $470,836.

The portion taken from victims in Queensland has been calculated as $161,782.50 with Mr Donaldson relating to $110,682.50 of that figure, documents stated.

Documents marked Mr Davenport as the co-accused of Mr Donaldson and ASIC records show Mr Davenport to be the director of Madesco Escorts, Madesco Models, JD Operations and JD Fitness, which were all used to allegedly scam victims.

The court registry could not find any records regarding Mr Davenport and documents listed his last known location as Malaysia.

Magistrate Rod Madsen said the co-accused “still had many aliases.”

Documents revealed in March, 2022 police received reports from multiple victims about an alleged investment scam after becoming involved with a business named “The Escort Company.”

As they were investigating, a report showing identical offending came from interstate involving a business named “The Madesco Company.”

Some of the victims were approached through dating apps while others were introduced through friends. Photo: generic

Police uncovered Mr Donaldson and Mr Davenport operated under these and several other company names and found a further two unsolved fraud cases from 2016 relating solely to Mr Davenport, documents stated.

Each victim were allegedly told Mr Davenport ran an international company managing escort workers and were offered an opportunity to invest by paying a sponsorship fee for an escort and receiving a percentage of their revenue.

Documents stated the pair allegedly gave excuses and then cut off contact completely when the victims asked for their returns from the investments.

Police investigations discovered the funds were allegedly spent on various items and services including cryptocurrency, cosmetic surgery, flights, luxury accommodation, residential lease and loan repayments and everyday transactions.

One of the first victims - when Mr Davenport was allegedly operating alone in March, 2016 - had met the accused on an online dating app and was told by Mr Davenport he wanted to recruit Asian sex workers into his business and allegedly convinced the victim to invest $40,800.

Documents stated the second victim also met Mr Davenport on a dating app and was offered a contract to work for Madesco Escorts to retain his working visa in Australia.

He allegedly convinced the victim to pay for legal protection - which he was promised to receive back in quarterly instalments - and to sponsor three escorts for a total of $13,200.

The pair allegedly raked in more than $500,000 from the investment scams. Photo: generic

Documents stated the victim was forced to leave Australia and return to his home country as a result of the financial loss.

It is alleged Mr Davenport then entered a “form of relationship” with Mr Donaldson and moved from Victoria to New South Wales.

In 2018, the pair allegedly scammed a brother and sister out of $360,154.50 after Mr Donaldson introduced them to Mr Davenport and his escort business.

Documents stated the brother also put in further investments on behalf of his clients and contacts of his own property business.

The other victims all suffered from similar fate.

Defence lawyer Rhys Foster represented Mr Donaldson on Thursday to apply for bail and submitted he has secured Queensland accommodation and a job offer since his previous bail application.

Maroochydore Courthouse. Picture: Patrick Woods.

He told the court it was the first time Mr Donaldson had spent time in custody and was at risk of spending too much time in jail.

Mr Foster said his client has spent six months in prison which has been a significant deterrent and the matter is ready to proceed to a higher court.

Police prosecutor Mel Pyke said the accommodation would not decrease the flight risk and risk of committing further offences.

She said Mr Donaldson had regular contact with his co-accused.

Mr Foster told the court Mr Donaldson has shown “upmost willingness” to provide information against his co-accused and there have been no bail conditions which restricted him from contacting the co-accused.

Mr Madsen refused his bail and adjourned his matter to May 17.