Adelaide men jailed for $6 million fraudulent property investment scheme

Two men who "exploited the vulnerability" of multiple victims by swindling millions of dollars in a fraudulent property investment scheme have been jailed for the "undoubtedly serious" offending.

Adelaide man Andre Langos, 44, and Brighton man Sam Smith, 58, deceived five people — four of whom were aged over 60 — into transferring more than $6 million into a property investment scheme between April 2019 and July 2020.

In sentencing, South Australian District Court Judge Anne Barnett said the offending had "far-reaching and life-changing impacts" on each of the victims, one of whom had told the court the crime was an "abhorrent betrayal".

"[The victim] described the experience of seeing the extent of her losses documented on paper as a form of physical and emotional assault," the judge said.

"[The victim stated] that 'seeing your life burn down while already standing in the ruins and knowing someone else lit the match' captured the enormity of that experience."

Judge Barnett said another victim had described feeling "financially and personally violated, humiliated and stripped of control" along with a "profound shame" for trusting the scheme.

She said the victims had been robbed of their financial security and retirement funds.

"The financial and emotional consequences of your conduct have been profound."

Victims asked for more money

Judge Barnett said Smith had been introduced to Langos via a mutual friend, and that, prior to the offending, had invested successfully with Langos, before a further investment failed.

She said he later "procured victims" — some of whom had been friends for many years — to also invest with Langos and secure the return of his own investments, but she said Smith admitted he "failed to tell the victims the purpose for which the provided funds would be used".

The victims provided money to Smith to be transferred to Langos.

After the victims became frustrated at their funds not being returned, Judge Barnett said they met with Smith and Langos who told them their money had been preserved but that thousands of dollars more was required to secure and expedite the release of the funds.

Judge Barnett said the offending only came to an end after the victims consulted lawyers and contacted police.

She said that except for $40,000 being returned to one of the victims — who was also owed money outside of the scheme — the victims had not seen a cent.

"The victims did not receive a return of the invested sum of monies from either of you," she said.

Men 'remorseful' for fraud

Langos pleaded guilty to 14 counts of aggravated deception and one count of deception, while Smith pleaded guilty to six counts of aggravated deception and one count of deception.

The court heard that the victims transferred a total of $6,043,000 to Smith for Langos to invest, but Smith had only pleaded guilty to stealing $1,768,000 and Langos admitted to stealing $893,000.

The court previously heard Smith felt he too had been "sucked into the scheme" and that Langos was now bankrupt.

Judge Barnett accepted both men were remorseful for their offending.

She jailed Smith for seven years, and set a non-parole period of four years and nine months, making him eligible to apply for parole in March 2031.

Langos was jailed for eight years with a non-parole period of five-and-a-half years. 

He will be eligible to apply for release on parole in December 2031.

Judge Barnett declined to make an order for compensation against either of the men.