'Prince' of Broadmeadows defrauded 109 investors and lived the high life

Omar Jihad Yusuf, 40, travelled the world, drove a Ferrari, bought a racehorse and enjoyed panoramic views from his corner office at 101 Collins Street until his fantasy world came crashing down following an Age investigation in late 2004.

On a website for "Yusuf Holdings", the self-styled prince falsely claimed he had interests in pharmaceuticals, oil, aviation, property and perfume with 6500 employees worldwide and an annual turnover of $US650million.

The father of five pleaded guilty in the Supreme Court yesterday to defrauding 109 investors of a total $7.29 million by offering them attractive returns for investing in a trucking company, On the Go Transport, between 2003 and 2005.

Prosecutor Peter Rose, SC, said "mum and dad" investors used their superannuation to buy a 49% share of a delivery truck for $36,000, in return for $2000 a month in interest and $33,000 after five years.

Yusuf used their money to create the illusion he was a wealthy, successful businessman, telling a Turkish newspaper his business had grown from one to 865 trucks.

He adopted the title of Prince, saying it was an honorary title from the Saudi Arabian royal family. Yusuf later admitted to police that "Prince" was, in fact, his nickname at school in Broadmeadows, where he completed year 10.

Robert Richter, QC, for Yusuf, said his client was deceiving himself as much as his investors. He said Yusuf, whom psychologist Patrick Newton diagnosed with narcissistic personality disorder, had not set out to steal investors' money but thought he could make them rich.

"He was pulling himself up by his bootstraps to try and become a grand empire builder who started with one truck," Mr Richter said. "His litany of deceptions really does read like a television comedy series."

Mr Richter described investors, including accountants and police officers, as "people who should know better".

He said it was curious that the Australian Securities and Investments Commission did not act on the unregistered investment scheme, nor did lawyers and accountants employed by Yusuf. "He understands that he has hurt a lot of people and he can't shift the blame to others, even though others contributed significantly to his delusions of grandeur and notions that he could achieve them," Mr Richter said.

Mr Rose said Yusuf was exposed following an Age article and fled to Malaysia after selling 20 trucks he actually owned, leaving no assets for investors to recover. He said Yusuf continued his "flamboyant lifestyle" until charged with fraud in Malaysia, and returned to Australia last year after being granted bail. A warrant has been issued there for his arrest.

Mr Rose called for a "much higher" sentence than a minimum of four to six years suggested by Mr Richter.

Justice Robert Osborne, who described Yusuf's conduct as "predatory", will sentence him on a date to be fixed.