Memory loss delays gold fraud case

NEW details in a bizarre fraud case against a property developer accused of selling $200,000 worth of gold belonging to a Cairns pensioner have been revealed.

The Cairns District Court heard that the trial, due to start this month, has been delayed because a key witness cannot give evidence.

Crown prosecutions allege that Yehuda Peretz conspired with another person, who has fled to Eastern Europe, to take the gold from Howard Rees in 2011.

The court heard that the other person, a woman, had been friends with Mr Rees, who had loaned her the gold bars and sovereign to use as collateral to secure a loan.

The gold was then allegedly traded to a gold dealer for $200,000 of which $170,000 was transferred to Peretz.

Defence barrister Tim Grau, for Peretz, said the crown alleged that Peretz had been the “mastermind” and it was “all part of a grand scheme to get money for a property development”.

Yesterday the court heard that Mr Rees, 82, cannot give evidence during the trial because his memory has significantly deteriorated.

Now crown prosecutions must fight to have his statement ruled admissible.

Under the Justice Act a witness statement can be used in lieu of oral testimony under certain circumstances includ- ing when a witness is no longer required, dead or insane or is so ill they are unable to travel.

Crown Prosecutor Nicole Friedewald said her argument would be “targeted at the insane or fit to travel aspect”.

However Judge David Reid said Mr Rees didn’t sound insane but like he had a mental incapacity that affected his memory.

“It’s self-reported by him that he thinks he has dementia,” Ms Friedewald said, adding that she would need to source medical reports to confirm this.

Mr Grau told the court that any application to admit the statement would be contested.

The case was adjourned until today.

IT’S SELF-REPORTED BY HIM THAT HE THINKS HE HAS DEMENTIA

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