iscover Fraudsters sentenced over $10.7m tax fraud and money laundering scheme
BusinessFour people have been sentenced following an investigation into a two-year ‘sophisticated money laundering and tax evasion scheme’ that diverted over $10 million in PAYG withholding from labour hire services.
A joint Australian Federal Police and Australian Taxation Office investigation, Operation Bordelon, has led to the arrest and sentencing of two men and two women in NSW.
A 36-year-old woman and a 29-year-old man from Merrylands, a 56-year-old woman from Earlwood, and a 48-year-old man from Chester Hill were sentenced at the District Court of NSW.
The investigation revealed that $10.7 million in pay as you go (PAYG) withholding was siphoned to companies directed by other members of the criminal syndicate, their relatives, associates, and offshore.
The four guilty individuals were found to have used labour hire and payroll companies linked to the building and construction industry to divert these funds between July 2018 and July 2020.
The investigation led to 25 search warrants made in NSW, Queensland, and the ACT in July 2020 and the seizure of 17 luxury vehicles, 12 properties, and 65 bank accounts, before the four individuals were arrested and charged.
The quartet was sentenced to no less than 17 months in jail, with the highest sentence being three years in jail, and one receiving a community corrections order of two years and six months.
Australian Federal Police detective superintendent Peter Fogarty said that these actors gained an unfair advantage at the expense of every Australian.
“This 2-year scheme robbed the taxpayer of $10.7 million – money that would have had a direct impact on the Australian community,” Fogarty said.
“Anyone who thinks they can cheat the tax system is mistaken – your actions, no matter how complex or elaborate, can always be traced, and the AFP and its partners have the resources to identify and apprehend you.
“This result is a testament to the commitment, tenacity, and expertise of our investigators and the strength of the AFP together with the Serious Financial Crime Taskforce.”
ATO acting deputy commissioner Pennie Snowden said the Tax Office is actively targeting perpetrators and disrupting schemes at every stage.
“Serious financial crime undermines the level playing field for honest taxpayers and businesses. Addressing this behaviour is essential to safeguarding one of Australia’s greatest assets, the tax and superannuation system,” Snowden said.
“The Serious Financial Crime Taskforce brings together the expertise and capabilities needed to respond to complex financial crime, ensuring a co-ordinated and effective approach across agencies.”
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