Elie Douna, Charbel Douna: Deposits being returned following alleged Avoca Park scam

The real estate agency caught up in an alleged building fraud scam run by two brothers has moved to refund thousands of dollars in deposits.

Victims of an alleged construction fraud scheme run by a pair of Illawarra twins have started to receive refunds for deposits paid on developments in a luxe new housing estate.

Directors at Albion Park based company LuxLiving Homes, Charbel and Elie Douna were arrested following sweeping raids across the Illawarra on February 19.

Charbel Douna, 33, was arrested on February 19. Picture: Instagram

Elie Douna was arrested at the same time as his twin brother. Picture: Instagram

Police will allege the Douna twins were using falsified documentation in an attempt to obtain a $14.7 million loan to construct properties in LuxLiving’s 92-home Avondale estate ‘Avoca Park’.

At the time of the arrests, Detective Chief Inspector Glen Broadhead said police would allege 10 contracts of sale for the estate were legitimate, while nine allegedly were not.

It will also be alleged they enlisted the help of their real estate agent mate Ben Feltham, of Right Choice Real Estate in Albion Park, who allegedly published false contracts of sale as part of the scheme.

While it was initially unknown whether investors would refund their deposits, on Tuesday, a buyer contacted by the Illawarra Star confirmed their Avoca Park deposit had been refunded by Right Choice Real Estate just days after the charges were laid against the brothers.

Ben Feltham has been stood down from his role at Right Choice real estate.

Right Choice Real Estate managing director Adam Gromek confirmed to the Illawarra Star all deposits taken were done so “by the book” and were being held in an agency trust account.

“Our safeguards and procedures mean that the handling of any deposits for this development and any other project has been done by the book,” he said.

“All deposits are held safely in the Right Choice Real Estate trust account.

“Any purchasers that wish to have their deposit released or rescind their contract will need to speak to their solicitor, who can give us the authorisation to do so. This is industry practice.”

Artist impressions of the Avoca Park development at Avondale. Picture: LuxLiving Homes

Mr Gromek also confirmed Mr Feltham had been stood down from the agency, noting “Right Choice Real Estate is not under investigation or in any way implicated or involved, and the alleged matter focuses on one individual and one isolated project.”

LuxLiving, which has been closed since the Douna twins’ arrests last week was also contacted for comment, regarding how long they will be closed for and whether all other developments had been put on hold. The company was also asked whether Elie and Charbel intended to fight the charges.

They did not respond.

LuxLiving Homes in Albion Park is ‘temporarily closed’. Picture: Facebook

According to the company’s website, the head office in Albion Park remains ‘temporarily closed’.

Both Elie and Charbel were charged with 19 counts of publish etc false/misleading information to obtain advantage, dishonestly obtain financial advance by deception and participate criminal group contribute criminal activity.

Mr Feltham was charged with nine counts of publish etc false/misleading information to obtain advantage and participate criminal group contribute criminal activity.

The trio will appear before Port Kembla Local Court in April.

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