Federal Police bust $1bn money laundering scam after five days of raids across Sydney

A $1bn money laundering and tax evasion syndicate has been busted by the Australian Federal Police, who claim 1200 business were cashing in on the scheme.

A $1bn money laundering and tax evasion syndicate has been busted by the Australian Federal Police, who claim 1200 business were cashing in on the scheme.

Federal agents have raided homes across Sydney in the last five days, seizing $500,000 in cash, mobile phones and gel blasters.

They claim to have unravelled the workings of a system that allowed businesses to send electronic fund transfers or cheques for non-existent services to a criminal organisation in exchange for a fraudulent invoice. The business then received their funds back as cash, minus a commission.

AFP Detective Acting Superintendent James Rowe said: “This is commonly known as a false invoicing arrangement, which is a key focus area for the Serious Financial Crime Taskforce which is investigating this scheme”.

The businesses also used the scheme to hide enormous amounts from the ATO, which is now part of the investigation.

The AFP has seized $500,000 as part of the investigation. Picture: AFP

Federal agents, who are yet to lay any charges over the scheme, say it worked by business owners sending a cheque for, say, $10,000 to the facilitators who would return an invoice for the same amount without carrying out any work.

The criminal syndicate would then return cash payments of, for example $9800, pocketing the commission.

Most transactions were kept below the $10,000 mark, so as not to trigger automatic attention from financial authorities.

Properties were raided in Liverpool, Beverley Hills, Kingsgrove, Cabramatta and Earlwood, where the gel blaster and mounds of cash were seized – along with devices now undergoing forensic analysis. The AFP is confident arrests will be made.

A gel blaster was also seized. Picture: AFP

ATO Deputy Commissioner and joint taskforce chief John Ford said: “(This) demonstrates that we will identify and act against individuals and businesses engaging with false invoicing arrangements to avoid their tax and super ­obligations”.

“The Serious Financial Crime Taskforce is warning businesses against using these types of arrangements.

“Our investigative team – which is made up of highly skilled investigators, forensic accountants and technical ­experts – work diligently to ­ensure that anyone responsible for financial crime is brought to justice.

“We encourage those ­involved in false invoicing ­arrangements to come forward and make a voluntary ­disclosure.”

A man, 55, was arrested and charged with a breach of bail for an unrelated offence and was formally refused bail at Bankstown Local Court.

He will next appear in court on May 31.

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