Documents that netted Demetrios “James” Charisiou $38m in NDIS fraud
The architect of an elaborate scheme secured more than $38m from overseas investors on fake NDIS-approved properties.
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The motive of a former company director who duped overseas investors and raked in more than $38m on fake NDIS-approved properties remains a mystery.
Demetrios “James” Charisiou earlier pleaded guilty in the Supreme Court to two counts of obtaining financial advantage by deception and another two of using false documents.
He also pleaded guilty to using false documents with the intent of inducing the investors between April and July of the same year.
He re-appeared on Tuesday for a plea hearing and Justice John Champion said Charisiou would likely be sentenced early next year.
The former company director was remanded in custody.
He produced fake documents from banks and insurance companies and forged signatures from directors and lawyers to secure funds in excess of $38m from investors for Melbourne properties that were never purchased.
Charisiou — who moved to Australia from Cyprus when he was five — worked across the globe in places such as Dubai and Switzerland for companies including KPMG and Nissan, before health complications removed him from the workforce temporarily.
In August 2018, Charisiou registered LBA Capital, and its related company Living Bright Australia (LBA), with the Australian Securities and Investments Commission (ASIC) which sought to purchase properties and retrofit them to meet disability accommodation requirements for NDIS participants.
The following year, two Korean companies, KB Securities and JB Asset Management (JBAM), became aware of investment opportunities related to the supply of NDIS-approved housing and engaged in multiple business transactions with LBA Capital totalling almost $400m.
Charisiou obtained $38m in financial advantage by deception, namely by sending documents to the Korean investors relating to the purchase of two Moonee Ponds properties — at Hall St and Aspen St — that were false in April and May 2019.
The deception related to documents which included contracts of sale by vendors, NDIS certificates, legal advice letters, and insurance policies.
Prosecutor Georgina Coghlan KC told the court on Tuesday it was “absolutely obvious” Charisiou’s offending was anything but harebrained as the defence argued.
She said Charisiou significantly downplayed the offending which required a higher level of planning, premeditation, skill and industry knowledge.
Ms Coghlan said Charisiou continued his actions over a number of months, went to great lengths to maintain the legitimacy of his enterprise and roped in others in the undertaking.
Defence lawyer Chris Winneke KC said LBA Capital was established for a legitimate purpose.
“Here’s a man who got to a stage in life where he’s been working for a number of years and he wouldn’t embark on a scheme where he’d start producing false documents in such a way it would be inevitable he would be found out.”
Justice Champion said nobody involved in the trial could discover Charisiou’s motive behind the fraud.
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