Paul Fridman: Property developer accused of extortion through mysterious figure Mr International

A bankrupt property developer was left devastated in court after learning he would spend his first night in custody over allegations he recruited a suspicious man to blackmail his former partners.

Paul Fridman, 50, appeared in the Melbourne Magistrates’ Court on Monday evening to apply for bail after police raided his family’s home earlier the same day.

Following confusion over whether Mr. Fridman would guarantee $500,000 bail, he began crying uncontrollably after judge Gerard Lethbridge remanded him into custody.

Police allege he appointed a person known as Mr International to pursue debts he believed he owed from former business partners Ashley Boyd and Nigel Givoni.

Mr Fridman was arrested on Monday morning after the homes of Mr Boyd and his neighbor were allegedly bombed with Molotov cocktails on March 14.

He is accused of three counts of extortion, blackmail and cocaine possession.

Detective Senior Constable Andrew Lauder told the court that Mr Fridman told police he had been made to make phone calls to Mr International, whose name he did not know, to “make up money he owed”.

“They made an agreement that a 10 percent fee would be retained by Bay International for the money received,” the officer said.

Officer Lauder said Mr. Fridman said he believed Mr. International was going to “threaten or intimidate” the two men, but he tried to call it off after seeing the arson of Mr. Boyd’s home on the news.

The court was told Mr Fridman and Mr Boyd previously had plans to develop a parcel of land for a hotel and apartments in Queensland before Mr Boyd left in February.

Officer Lauder said Mr. Boyd soon began receiving calls and messages from Bay International, allegedly threatening violence if he did not pay $250,000.

“Look bro, you made fun of Paul and me, I had to send my sons to see you,” one message allegedly read.

“You owe me $250,000 for what you did… If you don’t agree to pay, then I’ll do what I have to do.”

Mr Boyd’s wife also began receiving messages urging Mr Boyd to contact Mr International.

One message allegedly said, “I know everything about you… If he doesn’t send me this signature, I promise people will be shot, houses will be burned and people will be kidnapped because of such things.”

“Your lives are not worth even an ounce of money.”

Officer Lauder said a Middle Eastern-looking man was caught on the family’s security cameras outside their home twice on February 25 and March 4.

The officer said inquiries into this person are ongoing and it is not known at this stage who firebombed Mr Boyd’s home at 3.56am on March 13.

Another message following the fire allegedly said: “I have made everything clear… either you continue to pay the bill or I will burn everything connected to you.”

Officer Lauder said Mr. Boyd and his wife were living in genuine fear and were still receiving messages from Mr. International as of Monday.

He told the court Mr Boyd had responsibilities relating to the Queensland deal but did not owe Mr Fridman any money.

Officer Lauder said Mr. Fridman and Mr. Givoni were business partners at real estate development company Fridcorp for 20 years before parting ways in November 2023 following Mr. Fridman’s bankruptcy.

In February, Mr Givoni allegedly began receiving calls and messages from Mr International claiming he owed Mr Fridman $20 million.

“Hey Nigel, I’m calling about Paul, contact me before I bring my sons to visit,” one message allegedly read.

“If it’s worth losing your life, let’s go that route.”

Mr. International allegedly wrote that he “seen it all” and that “Paul owed me money and I was collecting what I owed him.”

Officer Lauder said Mr. Fridman “wholeheartedly believed that he owed him money” and was of the opinion that because he sold the debt, he was “cleared of any wrongdoing.”

The court was told ChatGPT was found to have two issues with Mr Fridman’s devices dated at an unknown time.

Someone asked: “Is it legal to ask for a loan from a third party in Australia?” while the other one said, “What happens if this person resorts to violence?”

Under cross-examination by Ms. Brown, Mr. Fridman’s attorney, Officer Lauder agreed that police had failed to establish a connection between Mr. Fridman and the Middle Eastern man.

“Do you have direct evidence that the applicant knew what Mr. International would do or what the Middle Eastern gentleman would do?” he asked.

“No,” said Officer Lauder.

Ms Brown said there was clearly strong evidence that Mr Fridman was “associating” with Mr International, but the questions became more complicated when considering whether he knew what was coming.

“The applicant gave a version… he was expecting intimidation and harassment. This is a long, long way from throwing a petrol bomb at someone’s house,” he said.

“There is one truly testable issue…the extent to which he knew the nature of the threats to be made by the second and third parties involved in this scheme.”

Ms. Brown suggested that the equity in Mr. Fridman’s home could be used as a surety guarantee and said she later rented it out because of his bankruptcy.

Mr. Lethbridge postponed the hearing, which was expected to continue Tuesday afternoon.