Chada Khati, Can Mustafa Kaya charged with laundering proceeds of sextortion, other scams

A massage therapist has been accused of helping her ex-husband launder six-figure sums, allegedly defrauded from victims of scams that included a sextortion plot.

A massage therapist has been accused of helping her ex-husband launder more than $100,000 in cash, which is said to have been defrauded from 300 people who allegedly fell victim to various scams that included a text message-based sextortion plot.

Thai national Chada Khati, 29, was granted bail on Wednesday in the Downing Centre Local Court, where she was charged with recklessly dealing with the proceeds of crime with intent to conceal.

She is yet to enter a plea and has not been charged with perpetrating the alleged frauds.

The case is the same with her former husband, 31-year-old Can Mustafa Kaya, who was remanded in custody by Parramatta Local Court after a failed bid for bail.

Chada Khati, who is accused of money laundering. Picture: Facebook

Khati was arrested in the Sydney CBD on Tuesday, following a strike force investigation into the suspected laundering of funds allegedly derived from various fraudulent activities, including phishing, sextortion, business email compromise and cardless cash scams.

During Wednesday’s bail application, the court heard further analysis of bank transactions could “significantly increase” both the number of alleged fraud victims and amount of money involved.

Can Mustafa Kaya is arrested in Parramatta on Tuesday. Picture: NSW Police

Opposing bail, a police prosecutor told the court there was an “unacceptable risk of further offending” and a danger the community could be scammed out of more money.

The prosecutor also said the alleged fraud victims included “young men”, who had been caught up in “sexting communications” that involved “unnamed people sending images”.

Khati’s lawyer told the court her client had been “naive” and had “mistakenly trusted” her then-husband, who had allegedly assured her their conduct was legal.

Can Mustafa Kaya arrives at a police station following his arrest. Picture: NSW Police

“My client had some reservations about what was going on,” the lawyer said.

“She asked her then-husband if it was legal and he assured her it was.

“She was not the mastermind but a cog in the machine.”

The court also heard Khati had allegedly been “moving money around without being involved in the fraud”, allegedly withdrawing proceeds of scams from ATMs.

Chada Khati, who was granted bail on Wednesday. Picture: Facebook

“The co-accused would send her codes and she would withdraw the money not knowing where it came from,” the prosecutor said.

Magistrate Rodney Brender ultimately granted bail, deciding any risks associated with Khati being released from custody were acceptable.

He banned the 29-year-old, who has no criminal record and who had already handed in her passport, from accessing encrypted phone applications or contacting any co-accused.

Mr Brender also directed that an acceptable person provide a $5000 surety.

Kahi is set to return to court on January 23.

Kaya, who will remain behind bars on remand after magistrate Katherine Thompson refused bail, had his case adjourned until a week after that.

NSW Police said investigations under Strike Force Scottsboro were ongoing.

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