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A Melbourne man accused of orchestrating a $395 million fraud to dupe two Korean investment houses into investing in fake NDIS-related property deals has appeared in court.
Demetrios “James” Charisiou on Friday attended a short administrative hearing at the Melbourne Magistrates via video to face five counts of obtaining financial advantage by deception. He is yet to enter a plea.
The Continental Hotel was one of the assets LBA Capital looked to purchase with money raised for NDIS housing. Credit:Simon Schluter
Mr Charisiou, 60, has not been remanded in custody and will instead be monitored by police through an electronic tracking device.
Dressed in dark blue suit, open collar shirt and glasses, Mr Charisiou could be seen smiling and chatting with his lawyer before the hearing began. He made no comment during the hearing apart from to confirm his name and that he understood the charges.
The Age and The Sydney Morning Herald first revealed the alleged fraud in 2019 when two Korean investment houses JB Asset Management and KB Securities took civil action in the Supreme Court of Victoria to recoup the $395 million it had given to Mr Charisiou’s company LBA Capital for investment in NDIS-supported properties.
Detectives from the Victoria Police fraud and extortion squad allege Mr Charisiou used an array of faked documents showing him and his group as having agreements with major developers Lendlease and CBUS Property. He also presented faked documents allegedly saying CBUS’s Volaire project in West Melbourne was NDIS supported property.
Police also allege Mr Charisiou used faked letters by copying the letterhead of national law firm Mills Oakley and faked insurance contracts with major insurer QBE to induce the Korean groups into investing with LBA.
In the civil matter, the Korean companies alleged LBA’s representative also created faked letters of support from Liberal Senator Sarah Henderson and also allegedly presented business cards and other material indicating they were official representatives of the NDIS.
The allegedly “faked” or inappropriate business deals included investments in developments such as the Australia 108 apartment tower in Melbourne, The Continental Hotel development in Sorrento and an apartment development in Moonee Ponds. A large portion of that money has been recovered by the Korean investment houses.