Operation Avarus-Midas: Feds bust Sydney-based global money laundering syndicate

Property, cryptocurrency, designer watches, luxury jewellery and firearms have been seized following arrests connected to an alleged international money laundering syndicate.

Nine alleged members of an international money laundering syndicate have been arrested in Sydney with Australian Federal Police seizing more than $150 million in property, cash and luxury items.

After investigations by Operation Avarus-Midas officers, the AFP alleged the group enabled multiple transnational serious and organised crime (TSOC) groups to launder funds obtained through criminal activities.

It is alleged the group laundered more than $150 million of their own profits from this enterprise, between 2018 and 2022.

AFP officers arrested Steven Xin at his Vaucluse home on Tuesday, with the 43-year-old alleged to be the founder and director of the organisation’s global activities.

Eight other people were arrested and charged with multiple money laundering and proceeds of crime offences, allegedly carried out in support of the organisation’s extensive activities.

Nine people have been arrested and charged. Picture: AFP

An immigration lawyer charged over his alleged involvement in the money laundering syndicate has since stumped up $300,000 for his release on bail.

A court heard Chang Hong Liu, 56, had clients in custody who urgently relied on him and he needed to be at liberty to either manage their matters or transfer them to a lawyer in the event he was suspended from practising due to his charges.

Liu, from Yagoona, is charged with aiding, abetting, counselling or procuring the commission of an offence against subsection 39 of the Commonwealth Crimes Act, which relates to destroying evidence which may be required in a court proceeding.

He is further charged with perverting the course of justice in relation to a judicial power of the Commonwealth.

A solicitor for the Commonwealth Director of Public Prosecutions did not oppose bail, saying interference with evidence was the only concern and the allegations against Liu date back three years.

“There’s no indication this is anything other than an isolated incident,” the prosecutor told the court.

Cash and designer watches were some of the items seized following the arrests. Picture: AFP

Magistrate Brett Shields granted bail with a $300,000 cash security, a curfew of 10pm to 6am and daily reporting to police between 6am and 10pm.

“I would have thought that upon conviction, custody would be an inevitability,” Mr Shields observed.

Liu – who represented himself in court, while handcuffed in a video suite at Sydney Police Centre – assured the magistrate he would make inquiries with the Law Society as to whether he can continue to practise law while his own proceedings are on foot.

The other accused syndicate members did not apply for bail and it was formally refused.

Alleged principal Steven Xin, 43, was charged with conspiracy to deal with more than $1 million where there was an intention for the money to become an instrument of crime, and conspiracy to deal with the proceeds of general crime to the value of more than $1 million.

Yi Ming Wang, 41, 41-year-old Chen Zhang and 54-year-old Raymond Luo were charged with conspiracy to deal with the proceeds of general crime to the value of more than $1 million.

Ruizhen Wang, 69, was charged with the same offence and granted bail by police to appear at Burwood Local Court at a later date.

Cash and designer watches were some of the items seized following the arrests. Picture: AFP

Yi Ming Wang, Zhang and Luo did not apply for bail, with Zhang adjourned to February 10 at Downing Centre Local Court for a bail application.

Court documents indicate Luo, Yi Ming Wang and Ruizhen Wang are all accused of conspiring to conceal or disguise the source of crime proceeds valued at $7 million, along with the identities of those with effective control of the money.

Yi Min Wang and Luo are further accused of dishonestly obtaining a financial advantage in respect of an $11 million loan to procure a property on King St in Sydney.

Zhaohua Ma, 45, 35-year-old Jin Yang, and 33-year-old Youming Chen were charged with conspiracy to deal with more than $1 million where there was an intention for the money to become an instrument of crime.

Court documents indicate that at different times on February 1 Ma and Yang are both accused of conspiring to deal with $121,686,569 intended to become an instrument of crime contrary to the Anti-Money Laundering and Counterterrorism Act.

Neither Ma, Yang nor Chen applied for bail.

Eight of the nine people charged are expected to face court on Thursday. Picture: AFP

All eight co-accused were adjourned to March 29 for brief status mentions at Downing Centre Local Court.

Operation Avarus-Midas was set up to identify criminal groups in Australia and offshore allegedly using the money laundering organisation to ensure their money was filtered through legitimate systems and their criminal activities were hidden from law enforcement.

The AFP alleges the money laundering organisation was a global operation uniquely-headquartered in Sydney, which facilitated the movement of illicit money through multiple jurisdictions by multiple means, including exploitation of Daigous, casino junkets and the informal value transfer system, which generally occurs outside conventional banking systems.

It is alleged the syndicate acted as an unregulated multinational bank, able to draw on cash reserves held in multiple countries around the world to facilitate transactions for criminal clients.

Criminal groups in Australia and offshore allegedly used its services to ensure their money appeared to be filtered through legitimate systems and their criminal activities hidden from law enforcement.

The AFP yesterday executed search warrants at 13 locations across Sydney and seized more than $29 million in cryptocurrency, 18 designer watches, 17 designer handbags, at least 46 items of luxury jewellery and four licenced firearms that were unlawfully stored.

It is alleged the group provided services at an industrial scale to Australian-based organised crime syndicates, allowing them to move and access their illicit funds across multiple international jurisdictions, while avoiding anti-money laundering obligations.

The AFP-led Criminal Assets Confiscation Taskforce has also obtained restraining orders relating to more than 20 properties in Sydney, including multiple commercial buildings in the CBD and surrounds, two high-value houses in Sydney’s eastern suburbs worth more than $19 million combined, a 360-hectare tract of land near the site of Sydney’s second international airport worth $47 million, 66 bank accounts, cash, and more than $1 million in luxury vehicles.

AFP Assistant Commissioner Eastern Command Kirsty Schofield said money laundering organisations were the lifeblood of organised crime and a major enabler of criminal activity in Australia and internationally.

“This was a sophisticated, complex syndicate established to facilitate the movement of funds regardless of their origin, purpose or harm caused to the Australian community,” Assistant Commissioner Schofield said.

“Money laundering is a global threat which no agency can combat alone. The AFP has relied on its expansive international network during this investigation, and would like to particularly thank the Hong Kong Police Force for their support.

“We have not ruled out further arrests in Australia or internationally. We are working closely with our international partners and sharing intelligence to ensure all members of this alleged money laundering organisation are held accountable for their actions.”