Eric Gillet, left, who was jailed for two years for fraud over a property deal that went sour in Bali. Photo: Amilia Rosa

The former president of the South Perth Chamber of Commerce has been jailed for two years for fraud over a property deal that went wrong in Bali.

Eric Bevan Gillet, 48, was convicted of defrauding two businessmen of 6.7 billion rupiah (about $686,000) in a land-and-villa deal in the glitzy Bali suburb of Seminyak.

Head judge Ketut Suarta said that as a foreigner, Mr Gillet had not only ignored the law but had taken advantage of the victims' naivete and stupidity. 

Eric Gillet, right, in court. Photo: Amilia Rosa

The two men - Balinese I Ketut Sumadi and Australian Tommy Comerford - handed over 6.7 billion rupiah in October 2013 to buy nine villas from the Xanadu Lifestyle Resort complex.

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This was a down payment on the total cost of 15.7 billion rupiah.

However the Denpasar District Court earlier heard Mr Comerford became alarmed when the development looked different from the original specifications. He requested to see the land title and building permits but Mr Gillet failed to produce them.

The court heard that when Mr Sumadi investigated and discovered a building permit had never been issued, the men demanded their money back.

Mr Gillet told the court the money the businessmen paid was the first instalment on the villas. He said he started building the villas, as per the order,  but they were not finished because the payments ceased.

"When I sent an email to ask for a further payment, (Mr Comerford) said his finances were not good and he couldn't pay," Mr Gillet said in an earlier hearing.

"I offered to return his money with a 10 per cent deduction for commission because I would have to resell the villas. He said no. I have proof of the rejection."

Prosecutor Purwanta Sudarmaji said Mr Comerford had no intention of repaying the 6.7 billion rupiah to the two victims.

"The defendant provided a convoluted statement during the trial," he said.

Mr Gillet was arrested at his home in Seminyak in February and has been detained in Bali's Kerobokan jail.

The judge sentenced him to two years' prison, minus time already served.

He said the defendant was polite during the trial but his act had caused uneasiness in the community and cost the victims financially.

"The aim of the sentence is not to retaliate but to help the defendant realise his mistake, change for the better and obey the law," Judge Ketut said.

Both the prosecutor and Mr Gillet's defence lawyer have seven days to decide whether to appeal the sentence.

Mr Gillet's lawyer, Deyong, said his client believed it was a civil case not a criminal case.

"He only breached the contract because the client failed to pay the balance on the villas and wanted the money back halfway," he said.

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