Supreme Court hears Former company director Demetrios “James” Charisiou forged documents

The architect of a scheme that duped overseas investors out of millions on fake NDIS-approved properties suffered from hypomanic and impulsive episodes, a court heard.

Charisiou pleaded guilty to obtaining financial advantage by deception relating to securing funds from overseas investors for NDIS-suitable properties that were never purchased. Picture: Brenton Edwards

The architect of a scheme that duped overseas investors out of millions on fake NDIS-approved properties suffered from hypomanic and impulsive episodes, a court heard.

Demetrios “James” Charisiou pleaded guilty to two counts of obtaining financial advantage by deception and two counts of using false documents in the Supreme Court earlier this year.

Court documents revealed the 63-year-old former director 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.

Demetrios “James” Charisiou pleaded guilty to two counts of obtaining financial advantage by deception and two counts of using false documents in the Supreme Court

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.

Justice John Champion heard that 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.

Charisiou would obtain the legitimate signature from company executives online and forge the documents to falsely represent to investors they were authentic.

He also pleaded guilty to using false documents with the intent of inducing the investors between April and July of the same year.

Charisiou lawyer, Chris Winneke KC told the court that while the sums of money were very large, the offending was unsophisticated and labelled it a “harebrained scheme” that largely involved “copy and paste” efforts.

Demetrios “James” Charisiou used the NDIS to help cover his dodgy dealings.

Mr Winneke suggested that investors were embarrassed not only that they were victims of the scheme but also because they missed “obvious signposts”.

He said that following health issues that included heart surgery and a subsequent bipolar diagnosis, the married father turned from a highly successful executive and an upstanding citizen to someone who was depressed with random bursts of hyperactivity that was withdrawn from his family.

Mr Winneke suggested there was no evidence that Charisiou intended to carry out an elaborate fraud and then disappear but instead he intended to return the money to investors but from locations and formats that were not agreed upon.

He said Charisiou would suffer through hypomanic and impulsive episodes were he would seek to achieve the returns promised to investors through other property investments and once the first “template” was established he replicated it.

The plea hearing was adjourned for further mention on November 14.

Charisiou’s bail was extended to the next hearing.