Xiaoli Xue: Sydney woman arrested over alleged money laundering scheme worth nearly $7m

A western Sydney mother who allegedly laundered nearly $7m through fake mortgages has made a plea for bail. Here’s the latest.

A western Sydney woman who allegedly laundered nearly $7m through fake mortgages has made a plea for bail.

Xiaoli Xue, from Berala, faced Burwood Local Court from custody on Friday via video link.

The 36-year-old has been charged with 10 counts of dishonestly obtaining financial advantage by deception and four counts of conveying tobacco products to defraud revenue.

She has also been charged with four counts of knowingly dealing with proceeds of crime to conceal, one count of publishing false misleading material to obtain advantage and knowingly dealing with proceeds of crime.

Police allege the woman's scheme has been going on since 2020. Picture: NSW Police/Supplied

Police state detectives from the Financial Crimes Squad, who were part of Strike Force Karawina, tracked the woman’s actions back in 2020.

Xue came under their radar after allegedly being granted 10 home loans across multiple banks, which police allege was done using fraudulent documentation to grossly inflate her income.

Police investigated seven mortgaged properties, valued at $6,910,050, which are alleged to have been laundered on behalf of an organised crime network through mortgage repayments.

Officers will allege a majority of the funds came from the illegal tobacco trade from Southeast Asia.

Xue was arrested on Thursday and she was charged at Auburn Police Station.

During three search warrants in Belera and Auburn, police uncovered and seized $2.5m worth of tobacco cigarettes, $28,000 worth of loose-leaf tobacco, $104,465 cash and a Mercedes GLC300 worth $110,000.

Police allege the woman used fraudulent documents to secure home loans. Picture: NSW Police/Supplied

During the Auburn raids, police discovered an illegal gambling den and an unlicensed tattoo parlour linked to the organised crime network.

Commander of the Financial Crimes Squad Detective Superintendent Gordon Arbinja said they had disrupted a cleverly planned money laundering operation.

“The alleged use of fraudulent mortgages to launder nearly $7 million is clear indication of the lengths to which these criminal enterprises will go to conceal their illegal activities,” Det Supt Arbinja said.

During the bail application, Xue’s lawyer John Kahn said while some tobacco was found at his client’s house, there was nothing to link her to the tobacco found at the other properties.

“How is my client related to the $2m tobacco found at the other storehouse?” he said.

Mr Kahn argued for the knowingly deal with proceeds of crime charges, he found it “difficult to understand” how these relate to the transport of mortgage.

“In my mind, the strictly indictable charges are very weak prosecution cases,” he said.

Mr Kahn assured the court she would not be a flight risk with Xue the primary carer for her 14-year-old son and an Australian citizen and with no criminal record.

The police prosecutor opposed bail and said there was an unacceptable risk of reoffending.

“There is still a co-accused to be found by police and further raids to be conducted,” he said.

Magistrate Jennifer Price said Xue has strong community ties and there was no evidence to suggest she would not follow bail conditions.

“The devil will be in the detail for some of the charges,” she said.

Ms Price granted conditional bail and the case was adjourned to April 30.