Luxury flats show crime does pay - for the government

The federal government is set to pocket a tidy $9.25 million from the sale of a luxury apartment at The Rocks, following the uncovering of a liquor cartel.

This penthouse on Harrington Street, The Rocks has been sold as on behalf of the Commonwealth of Australia under the Proceeds of Crime Act. Picture: Supplied

The federal government is about to make a tidy total of $26 million with the sale of a second luxury flat in The Rocks under the proceeds of crime act.

Agents are hoping for $9.25m for the four bedroom, four bathroom sub-penthouse in Harrington Street after it was seized under Operation Cabestro, a joint operation by Australian Border Force and the Australian Federal Police.

The view from 702/85 Harrington Street, The Rocks which has been sold as on behalf of the Commonwealth of Australia under the proceeds of Proceeds of Crime Act. Picture: Supplied

It uncovered a liquor cartel engaging in excise importation fraud in late 2019, after claiming false duty drawbacks on imported alcohol.

Police also seized 800,000 bottles of alcohol.

The flat in the nine-storey building developed by Golden Age was bought off the plan for $14m in 2019.

The upstairs penthouse in the same building was sold for $15m in April on behalf of the government after it was also confiscated by court order.

It was snapped up at a discount to its prior $17.5m off-the-plan purchase.

The sale proceeds will be distributed into crime prevention measures and diversion programs.

Originally published as Luxury flats show crime does pay - for the government