Evidence collected during the investigation of two brother's alleged multi-million dollar development scam is before the Supreme Court to assess whether it is the subject of legal professional privilege.
Elie and Charbel Douna were arrested in sweeping raids along with an Illawarra real estate agent Ben Feltham in February this year after police uncovered what they allege to be a "large-scale" fraud plot.
Police allege the 33-year-old brothers, who operate LuxLiving Homes in Albion Park Rail, were using falsified documentation in an alleged attempt to obtain a $14.7 million loan to construct homes for their development, Avoca Park, in Avondale.
Police allege Feltham, 35, who worked at Right Choice agency, created the false document that had been used as contracts.
Police claim 10 contracts for the construction of 19 homes, which was stage one of a 92-home development, were legitimate while nine contracts were allegedly forged.
The brothers' case was briefly mentioned in Wollongong Local Court on Wednesday where they were not required to appear.
Defence lawyer Nicholas Hanna said that some of the prosecution's evidence obtained during a search warrant of their lawyer's office was being argued about in the Supreme Court.
Mr Hanna said a claim for legal professional privilege was ongoing and was almost complete.
Legal professional privilege protects confidential communication and documents when a lawyer provides legal advice or services to a client.
The Mercury understands the evidence relates to a search warrant at Wollongong Legal.
The brothers were arrested at their homes in Calderwood and Wongawilli while their Albion Park Rail business was also raided on February 18.
Police also located and seized a poker machine and a firearm.
Documents tendered to court said the brothers are accused of making or publishing misleading or false bank statements for deposits of between $54,900 to $58,900 for seven people and two couples to secure a $14.7 million loan.
Police also allege Chabel Douna fired a .22 calibre bullet into a gender reveal balloon at his wife's baby shower at their Calderwood home in May 2019.
Charbel held a firearms licence but allegedly used his gun for a purpose other than the genuine reason for having the firearm.
He also allegedly had a unauthorised poker machine at his home without holding a licence.
The brothers were charged with 19 counts of publishing false/misleading information to obtain advantage, dishonestly obtaining financial advantage by deception and participating in a criminal group by contributing to criminal activity.
Feltham was charged with nine counts of publishing false/misleading information to obtain advantage and participating in a criminal group by contributing to criminal activity.
The cases were adjourned to October.
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