NSW man Alexander Csergo charged with selling Australian defence secrets to two Chinese spies

Alexander Csergo appeared in court on Saturday, the matter adjourned after he was charged with selling secrets, the alleged offence committed in Shanghai and NSW.

A man has been charged with selling Australian defence, economic and national security secrets to two foreign spies working for the People’s Republic of China.

Alexander Csergo, 55, was arrested by Australian Federal Police at Bondi in Sydney’s eastern suburbs late on Friday and charged with one count of reckless foreign interference, a charge that carries a 15-year jail term.

He is only the second person in Australia to face a foreign interference charge since legislation targeting alleged foreign interference was introduced in 2018.

Mr Csergo, an Australian citizen who lives and runs a business in China, was arrested after he returned to Australia from abroad.

It is alleged the Australian man compiled a number of reports for the individuals and received payment for those reports. Picture: AFP

He wore the same clothes he was arrested in as he appeared via AVL at Parramatta Local Court on Saturday morning.

He said: “Good morning, you honour,” as he appeared on the screen.

The solicitor for the commonwealth DPP asked the matter be adjourned for Monday at the Downing Centre for a release application.

The alleged offence was committed between February 1, 2021, and April 14, 2023, in Shanghai in China, NSW, and elsewhere, according to the charge sheet.

“The defendant, Alexander Csergo, did … intentionally engage in conduct in circumstances where the conduct was engaged in, on behalf of, or in collaboration with and/or directed, funded or supervised by persons acting on behalf of a foreign principal, namely ‘Ken’ and/or ‘Evelyn’,” it states.

“And the defendant was reckless as to whether the conduct would support intelligence activities of a foreign principal, and a part of the conduct was covert or involved deception.”

The arrest came as part of a Counter Terrorism Taskforce Investigation instigated by Australia’s domestic intelligence agency, ASIO.

The AFP alleged Mr Csergo had been approached via social media by an unnamed individual who claimed to be from a think tank. The approach is alleged to have happened offshore when Mr Csergo was allegedly invited to meet the unnamed individual’s representatives.

Police further allege that he then met with two spies, who used the anglicised names Ken and ­Evelyn.

“The AFP will allege the two work for a foreign intelligence service and are undertaking intelligence collection activities,’’ police said in a statement.

ASIO and the Five Eyes partners have been warning about persistent and sophisticated attempts by the People’s Republic of China to access details of Western countries’ defence and national security capabilities.

He is believed to work as the president of global innovation and transformation at a company called Conversys, a digital solutions company headquartered in Shanghai, China.

Alexander Csergo.

The company’s website says it has previously worked with several major companies, including Australian telcos Optus and Telstra. Another social media profile under the name Alexander Csergo says he has worked for both those companies, as well as Hyatt Hotels in Australia.

The Conversys website says Mr Csergo has 30 years’ experience in data analytics. “Alex began his career in the telecommunications infrastructure industry; by 25 he started his first VC-backed company,’’ it says.

“He began his career in China in 2002.’’

The website says Mr Csergo has worked for major companies including Daimler, BMW, Jaguar Land Rover, Audi and Volks­wagen Group China in telecommunications infrastructure, and had won 40 international awards for his work.

Media reports in 2014 note that a man named Alexander Csergo had been hired by luxury cosmetics firm Estee Lauder to improve their market presence in China.

The AFP alleged Ken and ­Evelyn offered Mr Csergo money “to obtain information about Australian defence, economic and national security arrangements, plus matters relating to other countries’’.

The AFP alleged the man had been approached via social media by an unnamed individual who claimed to be from a think tank. Picture: AFP

“It is alleged the Australian man compiled a number of reports for the individuals and received payment for those reports,’’ the AFP said.

It said Ken and Evelyn may have tried to recruit other Australians, and urged anyone with information to come forward to law enforcement.

“The AFP believes other Australian citizens and residents may have been approached by ‘Ken’ and ‘Evelyn’ and is urging those individuals to provide information to the National Security Hotline on 1800 123 400,’’ police said. “Espionage and foreign interference pose a serious threat to Australia’s sovereignty, security and the integrity of our national institutions.

“The Counter Foreign Interference Taskforce, which includes ASIO and the AFP, is working to disrupt the threat and mitigate the harm from foreign interference and espionage.’’

AFP Assistant Commissioner Krissy Barrett said police had recently provided diaspora communities with a fact sheet urging them to call the national hotline if they believed they had been the subject of, or witness to, foreign interference.

“The AFP and their partners thank those individuals who have placed their trust in law enforcement and provided valuable information to the national security hotline. We know making those calls can be daunting but I assure you we never take for granted the support we receive from the public,’’ she said. “I want to underscore that the AFP targets criminality, not countries nor ethnicity. With our partners, the AFP is ensuring that we protect Australians, Australia’s sovereignty and our way of life.’’

The previous person charged under foreign interference legislation, Di Sanh Duong, 67, has been before the courts in Melbourne for the past three years.

Mr Duong, a Chinese community leader in Melbourne also known as Sunny Duong, is accused of preparing for an act of foreign interference, an offence that carries a maximum sentence of 10 years.

Police have alleged a donation he made to a hospital in Melbourne was designed to curry favour with former Coalition minister Alan Tudge in order that he could approach Mr Tudge and seek to influence government policy in a manner that would benefit the Chinese government.

Mr Duong has denied the charge.

Additional reporting: Joanna Panagopoulos