The possibility of him escaping the country while his claimed victims seek $2.8 million in compensation has led to the continued imprisonment of an American man accused of defrauding investors through a bogus bond scheme.
After an 8.5-month investigation, NSW Police arrested Richard Emil Ayoub, 53, on suspicion of defrauding 14 prospective investors, including seniors, over one month in early 2021.
A judge on Thursday described the evidence against Mr. Ayoub as “strong” and said he was likely to get a significant prison sentence. He has been charged with 13 charges of gaining a benefit by deceit and 13 counts of carelessly dealing with the profits of crime.
Police claim Mr. Ayoub collected more than $2.8 million from investors before investing it in bitcoin.
Investigators have claimed that con artists impersonating reputable financial organizations tricked his victims into purchasing phony bonds.
In court on Thursday, the American national argued that he should be given bail until he responds to the allegations; he is scheduled to return to court in March.
Justice Stephen Rothman was informed by the prosecutor, David Laird, on Thursday that money from Mr. Ayoub’s company, Radhanite Pty Ltd, was transferred into Bitcoin and that the accused plan had “unidentified criminal ties.”
Before Mr. Ayoub was detained when he turned himself in at Kings Cross police station, police raided his Woolloomooloo flat in November last year, taking electronic equipment and papers.
Mr. Ayoub boasted of his “excellent record” in “finding profitable company growth prospects” and self-described as a “strategic-thinker individual” on his LinkedIn profile.
Mr. Ayoub watched as his attorney Richard Pontello fought for his release, citing bail terms such as a $250,000 bond and his residence in a Zetland flat. Mr. Pontello appeared through an audiovisual link from John Morony Correctional Centre in northwest Sydney.
The crown rejected his plea for bail because he constituted a flight risk and a threat of committing more severe crimes.
When he was informed by the Commonwealth Bank in March of last year that he was the subject of an inquiry and that his bank accounts had been suspended, Mr. Pontello claimed that his client had not left the country.
Additionally disclosed to the court were Mr. Ayoub’s prior convictions and incarceration for comparable offenses in the United States.
“The last offenses of dishonesty (in the United States) has an air of antiquity about it being committed nearly 20 years ago,” Mr. Pontello stated.
“Or, at the very least, it could be described as stale.”
Additionally, he said that Mr. Ayoub had the backing of his siblings and ex-wife, who had signed papers calling for his release.
When police searched Mr. Ayoub’s flat, Mr. Laird claimed that they discovered an international money transfer documenting the transfer of $210,000 into Bitcoin and that Mr. Ayoub’s “fingerprints” were “all over.”
“The issue the crown takes with his general behavior, 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 a custodial sentence in the US.”
Mr. Ayoub’s plea for bail was refused by Justice Rothman, who noted that there was a “strong incentive to flee the country” given that he was now being sought for $2.8 million in compensation.
Justice Rothman stated, “There is a genuine chance of flight.”
“The crown case, which in my opinion is solid, as well as the nature and gravity of the offenses, are the things the court considers,”
A compensation of around $2.8 million is being sought right now. The applicant learned that sum later.
“The applicant did not run during the interval between being informed that he was being investigated and being apprehended because he was unaware of the compensation’s value, which is a major issue and gives one reason to leave the country.”
