Conman Peter Foster granted bail on fraud charges

A court has been told there is a jurisdictional problem with the fraud charges against him.

Notorious conman Peter Foster has gone from the jailhouse to the penthouse after being bailed to live in a multi-million-dollar mansion in Sydney’s Dover Heights.

Foster, 58, accused of defrauding a Hong Kong pilot of almost $2m, will enjoy panoramic views to the Harbour Bridge as NSW prosecutors prepare to withdraw fraud charges against him.

As revealed by The Australian on Thursday night, prosecutors have told the alleged victim in the case, Konstantinos Stylianopoulos, that there is no evidence the alleged offending occurred in NSW, and that Foster should have been charged in Queensland. Discussions would be held with Queensland authorities to see if they would bring their own charges, he was told.

The developments are embarrassing for both the NSW and Queensland police forces, and distressing for Mr Stylianopoulos. He was told he could submit a complaint to Queensland police if charges were dropped.

Foster appeared in Sydney’s Central Local Court via video link from Parklea Correctional Centre on Friday.

It was confirmed in court that the crown had changed its position and no longer opposed bail. Foster was required to surrender his passport, not access the internet, not possess a phone and provide a $180,000 surety.

His barrister, Philip Strickland SC, told the court there was an issue of jurisdiction with the charges and negotiations were underway.

Queensland police arrested Foster on Four Mile Beach in Port Douglas in August last year, sensationally crash-tackling him as he walked his dogs.

He was extradited to NSW and accused of defrauding Mr Stylianopoulos of his life savings through an alleged international sports trading scam involving Bitcoin transfers through a Sydney cryptocurrency exchange.

But the alleged victim was on Thursday told by a prosecutor that it had been a mistake to charge Foster in NSW, and that he should expect the serial conman to be released on bail.

Foster was based in Queensland at the time of the alleged ­offending and is accused of receiving funds into a crypto wallet with a Queensland address.

He will effectively be under house arrest in luxury at the Dover Heights home, allowed to leave for medical emergencies, to report to police and for legal meetings. Magistrate Margaret Quinn warned that if he breached bail he may not get it again, and Foster replied that he understood.

The court was told the issue with the charges would be ­addressed by the time of the next court mention in April.

IFW Global chairman and private investigator Ken Gamble investigated the alleged scam on behalf of Mr Stylianopoulos and said it would be a “travesty of ­justice” if Foster was not pro­secuted.

He said he believed Foster had been bailed to live at the property by a former girlfriend who had also put up his surety.