Ron Bensimon: Ex bankrupt Sydney jeweller moved to Israel before court sentence

A formerly bankrupt jeweller to the stars has escaped with a fine for defrauding creditors with a court hearing he had started a new life in Israel.

There were curious scenes inside Sydney’s Downing Centre Local Court on Tuesday as Ron Bensimon appeared for sentencing after pleading guilty to a string of charges related to disclosures made to trustees and the transfer of money to his then wife.

Bensimon, 44, watched proceedings via audiovisual link from Israel - where he was now living - and was represented in court by his high-profile legal team of Ertunc Ozen SC and Mahmoud Abbas.

In February last year he was charged with six offences related to his bankruptcy.

He was set to go to trial, but negotiated a deal with prosecutors which saw him plead guilty to charges of making a declaration known to be false and concealing/removing property following presentation of a petition.

He was declared bankrupt in 2016 when his diamond business collapsed with debts of $6.9 million.

In 2021, he was discharged from his bankruptcy.

According to court documents, Bensimon failed to disclose several bank accounts and the transfer of a 7.5 per cent stake in a racehorse.

As well, while bankrupt, he withdrew or transferred more than $89,000 from one of the accounts he failed to declare to his then wife, according to a Statement of Agreed Facts.

There is no suggestion of any wrongdoing on the part of his then wife, Kate.

He also failed to disclose his ownership of $347,000 worth of diamonds, rings and jewellery, which he used to obtain loans from a Sydney CBD pawn broker.

Late last year he moved to Israel and he had routinely receiving threats from customers and aggrieved creditors, the court heard.

Prosecutors pushed for the formerly Melbourne-based businessman to be sentenced to jail or to be given a suspended sentence.

However the fact that Bensimon had dialled in from overseas prompted odd scenes inside the courtroom and serious questions about legal jurisdiction.

Magistrate Susan Horan queried whether she could impose any sentence given he was in Israel.

“What power do I have to sentence him while he’s out of Australia?” Ms Horan said.

The court heard he had previously been given leave to appear via audio visual link and permission to leave the country, despite the charges.

After a short adjournment, the prosecution and Bensimon’s legal team agreed that the only way the sentencing could proceed is if he could be dealt with by way of a financial penalty.

Mr Ozen told the court that he moved to Israel to start a new life after “negative publicity” had affected his ability to conduct business.

But even in Israel, he was still having trouble getting back on his feet and it had become impossible for him to obtain finance to start a new business.

He was convicted and fined $17,500 by Ms Horan who described his offending as “reasonably serious”.

In 2020, ASIC disqualified Bensimon from managing a company for three years for failing to pay debts to suppliers following the collapse of three businesses, which included a store inside Melbourne’s Crown Casino.

In 2019, he was embroiled in a long-running legal stoush with recently-retired Geelong Cats champion Joel Selwood centering on a 3.21 carat engagement ring.

Mr Selwood pursued legal action when a company - which Bensimon ran with his then-wife - only refunded $6000, despite a Magistrates Court order for the company to pay $66,000.

The amount has since been refunded.

Before the collapse of his business empire, his celebrity clientele included the likes of Nicole Trunfio, Pia Miller and Whitney Port.

He also provided the $50,000 diamond engagement ring for The Bachelor star Sam Wood when he proposed to Snezana Markoski.

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