An Australian couple that is battling extradition for allegedly defrauding over 400 people through a pyramid scheme have been granted bail.

Timothy Alan Mackay and Celia Eileen Jean Dunlop are wanted in Poland to face charges of having defrauded 432 people out of more than €230,000 by operating a pyramid scheme.

A pyramid scheme is a fraudulent system of making money based on recruiting an ever-increasing number of investors.

Last month, a Maltese court upheld an extradition request by Polish authorities to face charges on the strength of a European Arrest Warrant.

The couple – who are both 64 years old and born in Australia – appealed the decision and also asked to be allowed out on bail pending a decision concerning their appeal. Two previous bail requests had been denied by Magistrate Leonard Caruana.

Judge Edwina Grima heard how the Attorney General objected to bail due to the serious nature of the case, adding that the two had limited ties to Malta and there was the fear that they would abscond.

But the defence argued that the alleged crime they were wanted for happened over 10 years ago. The couple had strong ties to Malta, where they lived for the past decade. They owned a multi-million property and had a valid residence permit.

In light of this, the judge granted them bail against a deposit of €10,000 and a personal guarantee of €40,000 each.

Police Inspector Roderick Spiteri prosecuted. Lawyers Franco Debono and Adreana Zammit are appearing for Mackay, while lawyers Jose Herrera and Martina Herrera are representing Dunlop.