A raid on a Sydney accounting firm has become the latest development in a major fraud investigation, with police alleging trusted professionals helped funnel millions through a sprawling loan scam.
Three staff from the Bankstown firm, including its director and two accountants, were arrested on Wednesday as detectives widened their focus from alleged money mules to the professional figures police claim helped keep the operation moving.
What began as an investigation into luxury ghost cars has since blown out into a much broader alleged fraud network.
Police claim the syndicate used stolen personal information to secure loans for high-end vehicles that did not exist before branching into personal, business and home loan fraud targeting financial institutions.
The latest search warrant was carried out at the Bankstown firm on Wednesday afternoon, with detectives joined by the NSW Crime Commission, the Australian Taxation Office (ATO), ASIC and the Tax Practitioners Board.
Police allege the firm’s director and staff worked closely with the syndicate and used their positions to help approve and facilitate fraudulent loan applications.
A 46-year-old director was charged with directing the activities of a criminal group, making false documents to obtain financial advantage in allegations tied to $16.2m in fraudulent loans, along with several other offences.
A 34-year-old accountant was charged over alleged offending linked to $15.6m in fraudulent loans, while a 28-year-old woman was charged over allegations tied to $14.5m in fraudulent loans.
The two men were refused bail and were due to appear at Bankstown Local Court on Thursday, while the woman was granted conditional bail to appear there on October 8.
The accounting firm arrests came a week after detectives executed warrants in Smithfield and Cabramatta West, where two women aged 37 and 58 were taken into custody over their alleged roles as money mules.
Police allege the younger woman’s offending involved $5.3m in fraudulent loans and almost $1m in alleged crime proceeds, while the older woman was charged over allegations linked to almost $13m in fraudulent loans.
Both were granted conditional bail and are due to face court on October 14.
The new arrests bring the number of people charged under Strike Force Myddleton to 33.
Financial crimes squad commander Detective Superintendent Gordon Arbinja described the latest arrests as part of a careful and persistent investigation.
“The alleged conduct uncovered during this phase of the investigation shows a deliberate and co-ordinated effort to exploit loan systems, misuse personal information, and conceal the proceeds of crime through professional channels,” Superintendent Arbinja said.
“These arrests demonstrate the sophistication of the syndicate and the lengths it allegedly went to obtain fraudulent loans and launder millions of dollars.
“Our investigators, supported by partner agencies, will continue to pursue every individual who plays a role in facilitating organised financial crime.”
ATO Deputy Commissioner Pennie Snowden warned professional enablers they would face scrutiny.
“Professional facilitators who assist others to commit financial crime undermine confidence in Australia’s tax and superannuation systems and create an unfair advantage over the vast majority of taxpayers and advisers who do the right thing,” Ms Snowden said.
“The ATO is committed to identifying and addressing these behaviours wherever they occur. We work closely with law enforcement, regulators and industry partners to detect serious noncompliance and hold people accountable.
“If you’ve participated in mortgage fraud, false income declarations or related tax avoidance arrangements, now is the time to review your affairs.”
Anyone with information that could help the investigation is being urged to contact Crime Stoppers.
Read related topics:Sydney