Fugitive handed jail sentence over investment scams that saw victims lose more than $1m

The holder of each share was “guaranteed” an annual return of 8 to 10 per cent for five years, depending on the investment sums.

Investors were told they could sell their shares back to RBIH after a two-year lock-in period or hold them until the five-year maturity date.

Selliaya later claimed the villas were in the midst of being constructed, with the opening slated for the third quarter of 2014.

He told investors they would receive returns from the rental income generated from the villas.

The agreement investors signed stated that RBIH was the “absolute owner” of Kenisha Ayurvedic Resort and Villas.

In reality, no villas were built at the time.

Deputy Public Prosecutor Matthew Choo said: “(While) the investors received one or two payments of the returns promised… some of the investors managed to obtain refunds of their investments from RBIH after significant inconvenience.”

The court heard that around $982,000 of the more than $1.9m collected was returned to investors. This led to a loss of over $920,000.

The offender also ran a second ruse, in which investors were told they could profit from the shares they held because a third party was purportedly interested in buying the villas and the land they sit on.

Around mid-2015, Selliaya and his brother set up White House Federal Trust and Assurance.

Investors were contacted by the trust and offered help in selling their shares.

According to court documents, investors were told they had to first pay a “capital gain tax” of 20 per cent on the sale price to claim the profits.

In total, nine investors paid nearly $191,000.

In truth, there was no offer from a third party.

Selliaya was charged in 2019, but absconded in 2022 when his initial trial was adjourned.

None of the victims of the second ruse got their money back.