Yagoona father Shafiq Khan accused of defrauding St John of God hospital

A western Sydney father allegedly created multiple fake email accounts as part of a scam that is said to have swindled a private hospital of more than $3m.

Bankstown Local Court, where Shafiq Khan appeared via audiovisual link. Picture: Robert Pozo

A western Sydney father allegedly created multiple fake email accounts as part of a scam that is said to have swindled a private hospital of more than $3m.

Yagoona man Shafiq Khan, 49, was granted bail when he faced Bankstown Local Court on Thursday, charged with one count of recklessly dealing with more than $5000 in proceeds of crime. He is yet to enter a plea.

NSW Police revealed on Thursday that it had launched Strike Force Millbon in September, following reports millions of dollars had been stolen from a hospital through an alleged “business email compromise fraud”.

Magistrate Glenn Walsh, reading from police documents in court, said Khan had allegedly created multiple fake email accounts, impersonating legitimate businesses, through which he is said to have contacted a clerk at a St John of God hospital.

Mr Walsh said of the more than $3m allegedly defrauded from the hospital, Khan was accused of distributing $2m to overseas entities and bank accounts.

The hospital was allegedly targeted in a “business email compromise fraud”. Picture: iStock

The court heard Khan had allegedly received a cut of the money for his participation in the scheme.

He was arrested on Wednesday, when strike force detectives searched a home on Rudelle Crescent in Yagoona, where they located and seized multiple electronic devices.

The 49-year-old appeared via audiovisual link on Thursday as his lawyer told the court Khan was a married father-of-four and an Australian citizen, with no criminal history.

Prosecutors did not oppose his release on conditional bail.

Mr Walsh, who granted bail with a $10,000 cash surety, said the nature of the alleged offending “strikes at the very heart of the business community”.

He said Khan’s alleged connection to overseas financiers also raised concerns the 49-year-old may present a flight risk.

“It is not unknown that people flee overseas and leave their family here in Australia,” he said.

“However, the prosecution do not oppose conditional bail.”

Khan’s bail conditions requirements that he surrender his passport and not enter an international airport.

His matter is expected to return to court on December 5.

In a statement, NSW Police cybercrime squad commander Matt Craft said detectives were generally seeing an increase in email fraud targeting large businesses across the state.

“I urge all Australians to be cautious online and to stop and think about documents they receive,” Detective Superintendent Craft said.

“These criminals are targeting all members of the community, particularly businesses and are using more elaborate and sophisticated ways to scam the general public.

“I would encourage victims to report a discrepancy immediately to their bank and the police.”

Investigations under Strike Force Millbon continue.