Sydney businessman Alexander Csergo gave China a report about Australia’s defence interests - court

Alexander Csergo has been charged with selling information about Australia’s national security and defence arrangements.

A Sydney businessman accused of supplying information about Australia’s defence and national security interests to alleged Chinese spies has been denied bail because of what a magistrate described as concerns for his safety.

Alexander Csergo, 55, on Monday appeared in Sydney’s Downing Centre Local Court in a bid to be freed on bail after becoming just the second person arrested under Australia’s foreign interference laws.

The AFP has alleged Csergo, a Bondi-born marketing expert, was recruited by alleged spies while living in Shanghai to collect information about Australia’s interests after a person purporting to be from a think tank contacted him via social media.

However, his lawyer told the court on Monday he had only provided publicly available information and denied he was involved in anything “sinister”.

The court heard it’s alleged he met with two people, known as “Ken” and “Evelyn”, who provided him with cash in sealed envelopes in exchange for reports about lithium mining in Australia, iron ore, the Aukus alliance and Germany.

He is charged with one count of reckless foreign interference, which carries a maximum penalty of 15 years in jail.

On Monday, his solicitor Bernard Collaery appeared on his behalf for a bail hearing, during which he said his client had never committed anything that could amount to “espionage”.

The AFP alleges he received payment after compiling a number of reports for “Ken” and “Evelyn”, who the AFP have alleged worked for an intelligence service.

According to court documents, it’s alleged his offending occurred from February 2021 until April 2023 while in Shanghai and NSW.

Collaery on Monday told the court that at the time, Csergo was living in China running his own consulting company and had lived there since 2002.

He described the prosecution’s case as “shallow” and “not strong”.

Collaery told the court Csergo had worked in China for large agencies and international companies in marketing and data analytics and had built a strong reputation.

He also said Csergo was aware when he met “Ken” and “Evelyn” that they likely worked for an intelligence service.

“Of course he believed Ken and Evelyn were keeping tabs on him; that’s how things work in China,” Collaery said.

But he told the court that all of Csergo’s work came from “publicly sourced documents”.

The court heard that in the weeks leading up to his arrest, he took part in lengthy interviews with the police.

Collaery stressed Csergo did not make admissions, but rather told officers that he provided publicly available information.

Magistrate Michael Barko described him as a “very well educated, sophisticated, worldly businessperson”.

He added that according to his own admissions, when he began communicating with “Ken” and “Evelyn”, he harboured a suspicion they worked for the Chinese state.

Solicitor Conor McRaith, for the Commonwealth DPP, told the court that when Csergo returned to Australia earlier this year, he came with a “shopping list” of matters and a “reasonable” person would have alerted authorities sooner.

He also said he “invited” “Ken” to visit Australia, all while under the suspicion that he was a spy.

The court also heard Csergo was paid cash in sealed envelopes during meetings with “Ken” and “Evelyn” at cafes, which were sometimes empty.

“I don’t know what they do in China, but in this country, if I read those facts to any layperson, they would be highly suspicious of the conduct of the defendant, at the very least,” Barko said.

Barko denied Csergo bail, saying he had strong ties to China, while pointing to cases where defendants had cut off ankle monitoring bracelets.

He also said he had concerns about Csergo’s own safety.

“No doubt when this hits the fan, there will be people very interested in him not giving evidence against the Republic of China,” Barko said.

Outside court, Collaery described the legislation as an abuse of civil liberties and said the case set a dangerous precedent.

Csergo will return to court in June.