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🇦🇺 Australia /Crime & Justice

Sydney Court Finds Israeli National Guilty of Laundering $10 Million in Investment Scam

From ABC Australia · (3h ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • An Israeli national, Shabtay Yaacoby, has been found guilty by a Sydney jury of laundering over $10 million stolen in an investment scam.
  • Yaacoby, a director of the Blue Star Exchange cryptocurrency platform, used the company to process funds from fraud victims.
  • The jury rejected defense arguments that Yaacoby was unaware of the fraudulent nature of the transactions, finding he knowingly worked with scammers.

In a significant verdict, an Israeli national has been convicted in Sydney for his role in a large-scale investment scam that defrauded numerous victims. Shabtay Yaacoby, a director and shareholder of the now-defunct digital currency exchange Blue Star Exchange, was found guilty by a District Court jury of laundering more than $10 million in illicit funds.

Why haven't you started bringing in money?

— Shabtay YaacobyRecorded phone call with a scammer, indicating his involvement in the money flow.

The Crown successfully argued that Blue Star Exchange was not a legitimate business but rather a front for money laundering operations. Over a 13-week trial, evidence was presented showing how Yaacoby's company processed payments from individuals who had been deceived by investment scammers. One particularly devastating case involved a New South Wales man who lost approximately $4 million from his superannuation fund, believing he was investing in a high-interest term deposit.

Yaacoby's defense team contended that he was merely operating a legitimate business and was unaware of the underlying fraud. However, the jury was unconvinced, finding that Yaacoby knowingly collaborated with the fraudsters to move stolen money out of Australia. Key evidence included a ledger found on Yaacoby's laptop detailing over 1,000 clients and recorded communications, including a phone call in Hebrew where Yaacoby could be heard instructing a scammer on how to interact with Australian clients and expressing frustration over the lack of incoming funds.

We're not suggesting that [the victims] haven't been defrauded, but my client did not know about it.

— David Dalton SCShabtay Yaacoby's lawyer, arguing his client's lack of knowledge regarding the fraud.

Yaacoby was arrested in November 2023 while visiting Sydney, reportedly attempting to unfreeze bank accounts linked to his business. The jury's swift deliberation, lasting just over four hours, underscores the strength of the prosecution's case. Yaacoby, who did not apply for bail, is set to be sentenced on May 22, bringing a measure of justice to the 39 victims who testified during the trial.

pushing boundaries

— David Dalton SCShabtay Yaacoby's lawyer, admitting his client's actions were to keep his business afloat.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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