Sydney businessman gave report to Chinese spies: court

A man charged under Australia’s foreign interference laws has told a court he only provided alleged intelligence service workers with publicly available documents.

A Sydney businessman accused of supplying information about Australia’s defence and national security interests to alleged Chinese spies has been denied bail because of what a magistrate described as concerns for his safety.

Alexander Csergo, 55, on Monday appeared in Sydney’s Downing Centre Local Court in a bid to be freed on bail after becoming just the second person arrested under Australia’s foreign interference laws.

The AFP has alleged Mr Csergo, a Bondi-born marketing expert, was recruited by alleged spies while living in Shanghai to collect information about Australia’s interests after a person purporting to be from a think tank contacted him via social media.

However, his lawyer told the court on Monday that he had only provided publicly available information and denied he was involved in anything “sinister”.

The court heard it’s alleged he met with two people, known as “Ken” and “Evelyn”, who provided him with cash in sealed envelopes in exchange for reports about lithium mining in Australia, iron ore, the AUKUS alliance and Germany.

He is charged with one count of reckless foreign interference, which carries a maximum penalty of 15 years in jail.

On Monday, his solicitor Bernard Collaery appeared on his behalf for a bail hearing, during which he said his client had never committed anything which could amount to “espionage”.

Alexander Csergo has been charged with selling information about Australia’s national security and defence arrangements. Picture: Supplied

The AFP alleges he received payment after compiling a number of reports for “Ken” and “Evelyn”, who the AFP have alleged worked for an intelligence service.

According to court documents, it’s alleged his offending occurred from February 2021 until April 2023 while in Shanghai and NSW.

Mr Collaery on Monday told the court that at the time, Mr Csergo was living in China running his own consulting company and had lived there since 2002.

He described the prosecution’s case as “shallow” and “not strong”.

Mr Collaery told the court that Mr Csergo had worked in China for large agencies and international companies in marketing and data analytics and had built a strong reputation.

He also said Mr Csergo was aware when he met “Ken” and “Evelyn” that they likely worked for an intelligence service.

“Of course he believed Ken and Evelyn were keeping tabs on him; that’s how things work in China,” Mr Collaery said.

But he told the court that all of Mr Csergo’s work came from “publicly sourced documents”.

Alexander Csergo on Monday applied for bail in Sydney’s Downing Centre Local Court. Picture: Supplied.

The court heard that in the weeks leading up his arrest, he took part in lengthy interviews with the police.

Mr Collaery stressed Mr Csergo did not make admissions, but rather told officers that he provided publicly available information.

Magistrate Michael Barko described him as a “very well educated, sophisticated, worldly businessperson”.

He added that according to his own admissions, when he began communicating with “Ken” and “Evelyn”, he harboured a suspicion that they worked for the Chinese state.

Alexander Csergo was arrested by the AFP in Bondi. Picture: AFP

Solicitor Conor McRaith, for the Commonwealth DPP, told the court that when Mr Csergo returned to Australia earlier this year, he came with a “shopping list” of matters and a “reasonable” person would have alerted authorities sooner.

He also said he “invited” “Ken” to visit Australia, all while under the suspicion that he was a spy.

The court also heard Mr Csergo was paid cash in sealed envelopes during meetings with “Ken” and “Evelyn” at cafes, which were sometimes empty.

“I don’t know what they do in China, but in this country, if I read those facts to any lay person, they would be highly suspicious of the conduct of the defendant, at the very least,” Mr Barko said.

Mr Barko denied Mr Csergo bail, saying he had strong ties to China while pointing to cases where defendants had cut off ankle monitoring bracelets.

He also said he had concerns about Mr Csergo’s own safety.

“No doubt when this hits the fan, there will be people very interested in him not giving evidence against the Republic of China,” Mr Barko said.

Outside court, Mr Collaery described the legislation as an abuse of civil liberties and said the case set a dangerous precedent.

Mr Csergo will return to court in June.