Prosecutors have sensationally dropped all fraud charges against one of two Illawarra property developer brothers accused of using fake sales contracts to apply for a $15 million bank loan.
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Twins Elie and Charbel Douna, who operate LuxLiving Homes in Albion Park Rail, were arrested in February 2021 and each charged with 20 counts of publishing false or misleading material to obtain an advantage and one count of participating in a criminal group. Charbel was also charged with one count of dishonestly obtaining a financial advantage by deception.
Police had alleged the 33-year-old brothers used falsified documentation in an attempt to obtain a $14.7 million loan to construct homes for their luxury 92-home property development, Avoca Park, in Avondale.
However, a solicitor representing the Director of Public Prosecutions formally withdrew all fraud-related charges against Charbel in Wollongong Local Court on Wednesday.
No explanation was given for the decision.
Charbel is still facing unrelated charges of firing a firearm in a manner likely to injure another person and two counts of illegal possession of a gaming machine.
The Mercury understands the firearm charge relates to allegations Charbel fired a .22 calibre Zastava Arms bolt action rifle at a balloon being held by his wife Sara during a gender reveal party at the family's Calderwood home on May 5, 2019.
Meanwhile, the fraud charges against Elie remain before the court.
Court documents reveal Elie stands accused of publishing fake contracts and deposit receipts from nine would-be buyers in his effort to obtain a $14.7m loan from Australian Unity Bank Ltd.
Police will claim 10 contracts for the construction of 19 homes at the site were legitimate, while nine contracts were forged.
Meanwhile, real estate agent Ben Feltham, 35, is accused of creating the false document that had been used as contracts.
All three men remain on bail. Their cases will return to court on April 6.
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