36yo arrested over $7m money laundering ring

A woman has been charged for allegedly laundering nearly $7 million on behalf of an Organised Crime Network through this one loan most Aussies have.

A Sydney woman has been charged for allegedly laundering nearly $7 million on behalf of an Organised Crime Network through this one loan most Aussies have.

Xiaoli Xue, 36, was arrested in Berala in the city’s inner-west following extensive inquiries at about 12pm on Thursday and taken to Auburn Police Station where she was refused bail to appear in Burwood Local Court on Friday.

She is alleged to have been laundering money through mortgage repayments for seven properties worth $6,910,050, which are the subject of the investigation.

These fraudulent mortgages and the following repayments are allegedly what she laundered the money through, on behalf of the OCN.

Financial Crimes Squad detectives identified that the woman applied for and was granted up to 10 home loans at various banks by using fraudulent documentation which inflated her income since 2020.

Xiaoli Xue, 36, was arrested for allegedly laundering nearly $7 million through mortgages, which were based on fraudulent documentation.

Police believe majority of the funds were derived through the illegal tobacco trade.

Ms Xue’s arrest led to three search warrants were being executed in Berala and Auburn.

Police allegedly uncovered $2.5 million worth of tobacco cigarettes, $28,000 worth of loose-leaf tobacco, $104,465 cash, and a Mercedes GLC300 worth $110,000, as well as an illegal gambling den and unlicensed tattoo parlour linked to the criminal network at the Auburn residence.

She was originally investigated under Strike Force Karawin which was established to investigate the alleged laundering of illegal tobacco funds through property by an Organised Crime Syndicate hailing from Southeast Asia.

She was charged with 20 offences including dishonestly obtain financial advantage etc by deception, knowingly deal with proceeds of crime, knowingly deal with proceeds of crime intent to conceal and convey etc tobacco products knowing of intent defraud revenue.

Her arrest led to police raiding three other properties in Berala and Auburn, where $2.5 million worth of cigarettes, $28,000 worth of loose-leaf tobacco, $104,465 cash and a Mercedes GLC 300 worth $110,000 were allegedly found, as well as an illegal gambling den and tattoo parlour connected to the criminal network.

Commander of the Financial Crimes Squad, Detective Superintendent Gordon Arbinja, said the arrest has disrupted a sophisticated 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.

“This arrest sends a strong message that we will not tolerate criminals who undermine the integrity of our financial system.”

Nicole Lawless, Executive Director of Legal and Confiscations at the NSW Crime Commission said this job has uncovered an alleged multimillion-dollar scheme to defraud several banks.

“The suspect’s assets have now been frozen, and we have commenced civil proceedings in the Supreme Court,” Ms Lawless said.

“If successful, the proceeds of this offending will be returned to the State of NSW.”

She was denied bail and will attend Burwood local court on Friday.

Darren Bennett, Executive Director of Operations at the NSW Crime Commission, said the NSWCC have been in lock step with the NSWPF at every step of this investigation.

“This is another collaborative success that will allow the proceeds of crime be returned to the people of NSW. I congratulate the Financial Crime Squad for an outstanding result.”