An American man accused of ripping off investors via a fake bond scam will remain in prison because of the risk of him fleeing the country as his alleged victims seek $2.8m in compensation.
Richard Emil Ayoub, 53, was arrested in November after an 8½ month investigation by NSW Police who have alleged he scammed 14 would-be investors – including retirees – over a one-month period in early 2021.
He has been hit with 13 counts of obtaining a benefit by deception and 13 counts of recklessly dealing with the proceeds of crime, with a judge on Thursday describing the case against him as “strong”, adding Mr Ayoub was facing the prospect of a lengthy jail sentence.
Police have alleged Mr Ayoub received more than $2.8m from investors before funnelling the funds into Bitcoin.
Investigators have further alleged that his targets were duped into investing in fake bonds by scammers posing as well-known financial institutions.
The American national on Thursday appeared before the NSW Supreme Court arguing he should be granted bail while he answers the charges, which are due back in court in March.
Prosecutor David Laird told Justice Stephen Rothman on Thursday that funds from Mr Ayoub’s business Radhanite Pty Ltd were funnelled into Bitcoin and the alleged scheme had “unidentified criminal associations”.
Police raided Mr Ayoub’s Woolloomooloo apartment in November last year, seizing electronic devices and documents before he was arrested when he handed himself in at Kings Cross police station.
On his LinkedIn account Mr Ayoub described himself as a “strategic-thinker individual” and boasted of his “stellar record” in “identifying profitable business growth opportunities”.
Appearing via audiovisual link from John Morony Correctional Centre in northwestern Sydney, Mr Ayoub watched on as his barrister Richard Pontello argued he should be released, offering bail conditions including a $250,000 surety and that he live in a Zetland apartment.
The crown opposed his bail application, arguing he was a flight risk and a danger of committing further serious offences.
Mr Pontello argued that his client had not left the country when he was told in March last year by the Commonwealth Bank that he was under investigation and his bank accounts were frozen.
The court was also told that Mr Ayoub had been convicted of similar offences in the United States for which he had served time in jail.
“The last offences of dishonesty (in the United States) has an air of antiquity about it having been committed nearly 20 years ago,” Mr Pontello said.
“Or at the very least it could be described as stale.”
He also said Mr Ayoub had the support of his brothers and former wife, who had provided affidavits in favour of his release.
Mr Laird said when police raided Mr Ayoub’s apartment, detectives found an international money transfer recording $210,000 being moved into Bitcoin that his “fingerprints” were “all over”.
“The issue the crown takes with his general behaviour, on any stretch of the imagination, he has not been honest with his wife, he has not been honest with his brothers, if the affidavits of the brothers are correct,” Mr Laird said.
“They were unaware of his conviction and service of custodial sentence in the US.”
Justice Rothman denied Mr Ayoub’s bail application, noting that there was a “serious incentive to leave the country” given he was now being chased for $2.8m in compensation.
“There is a real risk of flight,” Justice Rothman said.
“The matter that the court takes into account is the crown case, which in my view is strong, the nature and seriousness of the offences.
“There is currently compensation sought of about $2.8m. That amount only recently came to the knowledge of the applicant.
“During the xjmtzywtime the applicant did not flee (between when he was alerted that he was being investigated and his eventual arrest), he was not aware of the amount of compensation, which is a serious aspect and provides a motive to leave the country.”
