Jack Reuben ran electronics company Bdirect, but won taxpayer-funded contracts worth $110million to supply mostly-useless Covid masks. Then he went on a massive oceanfront Sydney property spending spree…

By William On Aug 4, 2024

A Sydney businessman was given $110 million by the government during the Covid pandemic to import gowns and face masks, most of which were worthless, before spending millions on coastal property.

Jack Reuben, 43, runs a relatively unknown online company called Australian Business Mobile (ABM), also known as BDirect, which ships electronics and homewares to consumers and has a product review rating of 1.5 out of five stars.

But when the pandemic began in early 2020, Mr Reuben’s company was ordered by the Federal Ministry of Health to import 50 million surgical masks into the country.

ABM then paid a company called Neumer Holdings — owned by two Australian brothers but based in Cyprus — nearly $60 million for the masks. Neumer Holdings then bought the masks from a supplier in China for $33 million.

According to the Australian Financial Review, Neumer Holdings made a profit of $12.7 million on the masks, while Mr Reuben’s company charged the government $11 million more than it paid for the masks.

ABM then struck another deal with the Ministry of Health in June 2020, worth $42 million, for the supply of four million isolation gowns. Similar deals were struck with a Cypriot company, which ultimately meant that ABM pocketed around $7.5 million.

It is now known that in 2021, a year after the deals were struck, Mr Reuben spent around $15 million on three properties in Sydney’s eastern suburbs, adding to his existing $10 million portfolio.

Around the same time, he was filmed pushing and harassing the presenter of A Current Affair, shouting “6ft!” during an episode about a cosmetic surgeon who had nothing to do with him.

Pictured: Jack Reuben, a father of two who received millions in taxpayer money during the COVID-19 pandemic

Of the 50 million masks ordered from Chinese companies, 45.7 were deemed non-compliant and the National Medical Stockpile decided not to use them. There is no indication that Mr. Reuben and Neumer Holdings were aware of these problems.

The surgical gowns showed no defects.

According to property records, Mr Reuben and his family purchased two apartments in Bondi for $3.95 million in April 2021, including a three-bedroom apartment with beach views.

That same month, he opened bidding on a Dover Heights home overlooking the Opera House for $9 million. His highest bid was $10.25 million, but he lost to another couple.

In September 2021, another $10.5 million was spent on a Dover Heights mansion with seven bedrooms, nine bathrooms, a sauna, cinema, swimming pool, ample parking for seven cars and views of Sydney Harbour.

Since 2014, his family has also owned a five-bedroom house with a swimming pool on Beach Road in North Bondi. The property cost $2.9 million at the time, but is now worth around $5 million.

Since 2009, the Reuben family has owned a five-bedroom house in Bondi Beach, which cost $1.9 million at the time, but is now worth around $5 million.

Records show the property rents for $2,400 per week.

The Australian Department of Health and Aged Care confirmed the $109 million deal to Daily Mail Australia.

A spokesperson said there was a shortage of personal protective equipment and the government had entered into agreements for supply to support the Covid response, including an agreement with ABM.

Pictured: One of the Bondi Beach apartments that Jack Reuben bought in April 2021, for a combined $3.95 million

Pictured: The $10 million Dover Heights mansion that Jack Reuben’s family moved into in September 2021

Pictured: The $5 million North Bondi home that Jack Reuben’s family used to live in and still owns

Pictured: The $5 million Bondi home that Jack Reuben’s family bought in 2009 and now rents out for $2,400 a week

“The risk profile for this tender was assessed as low to medium as ABM does not normally supply PPE and it is possible that they were unable to secure supplies of surgical masks due to global shortages,” the ministry said.

“Because ABM was a distributor of large quantities of general merchandise, it was assumed that ABM would have the connections and capabilities to move large quantities of PPE.”

Just months after spending millions on property in the eastern suburbs, Reuben accidentally got five minutes of fame when he became the centre of an item on Channel Nine’s A Current Affair.

Presenter Steve Marshall attempted to approach cosmetic surgeon Dr Daniel Aronov – also known as the ‘dancing doctor’ on TikTok – at a bagel shop in Bondi to discuss his surgical practices.

However, Mr. Reuben jumped in the way and acted as an impromptu bouncer so that the television crew would not interrupt Dr. Aronov’s breakfast with his wife.

Placing his hand in Marshall’s face, the father-of-two began shouting: “Stay 6 feet!” – touting current Covid social distancing measures.

“Get away from me, keep six feet apart, you like to get in people’s faces, get out of here,” he continued, pushing and shoving the host.

A few weeks later, the program aired a segment based entirely on Mr. Reuben and his household goods and electronics company, BDirect, which charged customers about five times more than competitors for the same products.

Jack Reuben is pictured physically assaulting A Current Affair presenter Steve Marshall in 2021

Pictured: Jack Reuben after being intercepted during a private Pilates class by A Current Affair in 2021

Marshall intercepted Mr Reuben in the middle of a private Pilates class in a Bondi Park. The host was holding an air fryer that normally costs $115, but BDirect was charging customers $599.

When asked why he became aggressive during the Dr. Dan segment, Mr. Reuben quickly distanced himself from the controversial surgeon, admitting that they were friends on Facebook, adding, “I’m friends with a lot of people on Facebook.”

“I know him, but I am not his friend and I do not support him,” he said.

When Marshall asked him about the overpriced items on BDirect, Mr. Reuben changed the subject and apologized for his aggression a few weeks earlier.

“I acted like a goose,” he said.

‘I was ashamed of my behavior and I am very sorry, but I did not know how to contact you.

“I lost my patience and since then I have only received criticism from everyone in the community.”

He then promised to give a discount on the items on his website.

At the time, BDirect had an average rating of 1.4 out of five stars on Product Review. By August 2024, this had increased to 1.5 stars.

However, a warning now appears on the page: “We have found a number of positive reviews for this listing that we suspect may have been falsely generated and may mislead consumers.”

Mr Reuben declined to comment when approached by Daily Mail Australia.

Full statement from the Ministry of Health and Elderly Care:

– During the height of a global pandemic in 2020, when there was a severe shortage of PPE, the Department of Health and Aged Care entered into agreements for supplies to support Australia’s COVID-19 response. This included an agreement with Australian Business Mobiles (NSW) Pty Ltd.

– The 2020 procurement process for PPE for the National Medical Stockpile (NMS) was conducted under a provision to protect human health, in accordance with paragraph 2.6 of the Commonwealth Procurement Rules (CPRs).

– The Department, in collaboration with the Department of Defence and the then Department of Industry Science Energy and Resources, reviewed and responded to hundreds of unsolicited approaches for supplies of PPE to the NMS. It also conducted due diligence checks and risk assessments, seeking both legal and procurement advice where necessary.

– The Ministry was made aware of ABM through an unsolicited approach from the government, which referred them to the Ministry for consideration.

– In mid-April 2020, a contract was signed with ABM to supply 50 million surgical masks to the NMS, valued at $67,100,000 (including VAT).

– The risk profile for this procurement was considered low to medium as ABM does not normally supply PPE and may not be able to secure supply of surgical masks due to global shortages and international restrictions disrupting supply chains. As ABM was a distributor of large volumes of general merchandise, it was assessed that ABM would have the connections and capacity to move large volumes of PPE.

– On June 3, 2020, the Department entered into a contract with ABM to provide four million Level 2 isolation gowns to the NMS, valued at $42,636,000 (including tax).

– The risk level of the tender was assessed as medium. The contract was drawn up in consultation with the Legal and Insurance department of the department.

– The ANAO released a Performance Audit Report in 2021 (No. 39 2020-21) focusing on the effective, efficient and ethical delivery of the Australian Government’s response to the COVID-19 pandemic. The report noted that the procurement processes for the COVID-19 related NMS procurements were largely consistent with the appropriate use and management of public resources.