Crypto scam accused Shabtay Yaacoby bailed to lived in pricey Bondi rental

Lawyers for the Israeli businessman rubbished the prosecution case in court, saying there was no evidence at all linking their client to the international crime syndicate.

Accused international money scammer Shabtay Yaacoby was given bail to live in a $2,700-a-week rental at Bondi with his wife.

Lawyers for an Israeli businessman arrested over a $50 million financial scam targeting Australian investors have launched a blistering attack on the case against him, rubbishing allegations he played a leading role in the international crime syndicate behind the elaborate fraud.

Australian Federal Police allege Shabtay Yaacoby, a one-time Israeli Defence Force soldier who worked for tobacco giant Philip Morris before moving into the field of finance and technology, was an “active and trusted senior member” of a criminal syndicate that ran “sophisticated investment and cryptocurrency scams”, which operated like “a modern Ponzi scheme”.

But his lawyers have claimed police have no evidence linking him to the syndicate, and successfully argued for him to be bailed from custody to a $2,700-a-week rental in Bondi.

Shabtay and Rebecca pictured during happier times. Ms Yacobi has not been charged with any offences and is not accused of any wrongdoing.

Documents tendered to the NSW Supreme Court last month reveal police will allege Yaacoby was the group’s money man, responsible for setting up local bank accounts and financial structures through which the money obtained by the offshore scammers could be laundered.

The documents outline the cases of four alleged victims who claim they were defrauded out of a combined $4.9m after unsuspectedly investing money with fraudulent companies who used the local bank accounts for deposits.

It is alleged once money was received into the accounts, Yaacoby would transfer the bulk of the funds to overseas bank accounts and international digital currency exchanges, out of the reach of Australian authorities.

Court documents said one ANZ bank account allegedly controlled by Yaacoby received $41m in deposits between June and November last year. During the same period, $37m was transferred overseas.

Police said they estimate up to 1000 individuals and small businesses across Australia lost more than $50m to alleged scams run by the syndicate between June and September alone.

Shabtay Yaacoby's LinkedIn profile outlines his previous career with tobacco giant Philip Morris International, and his foray into the fields of financial and technology. Picture: LinkedIn

Yaacoby was arrested in November last year, trading luxury accommodation at Crown Towers in Barangaroo for a 2x3m jail cell at Parklea prison.

However, he was released from custody last month to live with his wife in a plush pad in the heart of Bondi.

During the bail application, Yaacoby’s legal team, headed by Gabrielle Bashir SC, argued the case against him was “speculative”, “questionable circumstantial”, “theoretical” and full of “sweeping statements” and assumptions.

Ms Bashir said there was not a shred of evidence in the police material that linked Yaacoby with the alleged criminal syndicate, nor was there any information showing he was aware that any of the money he dealt with was linked to criminal activity – an essential element in proving the two dealing with proceeds of crime charges he is facing.

“In short, the AFP’s case is speculative, and the evidence relied upon and referred to [in the facts] provides no firm footing for the criminal proceedings which have been commenced,” written defence submissions filed with the court said.

“ … on the evidence provided thus far, the AFP’s case against the applicant is extremely weak.”

Court documents also revealed Yaacoby had been the target of anti-Semitic threats in jail in the wake of the Israel-Gaza war.

Shabtay and Rebecaa Yaacoby pictured in Sydney following his release from custody last month. Picture: Facebook

An affidavit provided by Yaacoby’s solicitor said in one instance, an inmate told the father-of-four he had a manual in his cell called ‘A Jew Must Die’, while in another incident, which occurred on Christmas Day, a prisoner told Yaacoby “you guys are killing my people and you will be killed too”.

The court heard Yaacoby and his wife Rebecca, an accomplished engineer earning $250,000 until she retired in 2017, had been in the process of moving to Australia when he was arrested, and she had since relocated to Sydney to support him.

She also agreed to lodge a surety of $500,000 – obtained via a loan from her superannuation account – to ensure her husband complied with his bail conditions and turned up to court.

Ms Yaacoby is not accused of any wrongdoing.

Justice Helen Wilson agreed to grant bail provided Yaacoby wears an electronic ankle monitor and reports to police daily.

As part of his bail, he was also required to surrender his passport and is prohibited from being involved in the operation of any Australian companies.

The case will return to court in April.

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