Finance experts recruited for advice in $17 million tax scam allegedly led by George Alex
A criminal syndicate recruited banking and finance experts
to help it scam more than $17 million from the Australian Tax Office, federal
police will allege.
Construction identity George Alex, 49, is accused of leading
the syndicate and allegedly recruited finance industry specialists to set up
the sophisticated money-laundering operation.
Commander Kirsty Schofield from the Australian Federal
Police (AFP) said it was a complex, multinational operation.
"This syndicate specifically included a mix of
financial industry experts to provide the level of expertise required to commit
the fraud and keep it ongoing," she said.
"We will allege that these people were part of the
syndicate and they have been charged."
AFP officers arrested 12 people yesterday during coordinated
raids on 10 properties across Sydney, the Gold Coast and the ACT.
Mr Alex has been charged with conspiring with the intention
of dishonestly causing a loss to the Commonwealth and conspiring to deal with
the proceeds of crime.
Nine other men are facing similar charges.
Two women, aged 50 and 30, have been charged with recklessly
dealing with the proceeds of crime and face a maximum of 12 years in prison if
found guilty.
The 30-year-old woman is Caitlin Hall, who is married to
convicted drug boss Michael Ibrahim.
The AFP will allege the syndicate controlled a number of
labour hire companies in the building and construction industry, and outsourced
their payroll services to separate payroll companies.
Investigators will allege in court that employee and
contractor wages, superannuation and insurance were all correctly paid but the
money allocated to be paid to the ATO for tax obligations was diverted and
allegedly laundered.
Companies 'phoenixed'
The AFP will allege that when these payroll companies
accrued a substantial tax debt they would be "phoenixed" or
abandoned, and a new company would be created in its place.
Assistant ATO Commissioner Aislinn Walwyn said many
businesses involved in serious financial crime appeared legitimate on the
surface.
"But once you peel back the layers you discover a web
of well-organised, syndicated activity like phoenixing," she said.
"Some people may think that non-compliance with tax
obligations is a victimless crime but it couldn't be further from the truth —
the whole community is impacted by this behaviour."
The AFP alleges the syndicate moved the money through a
number of other entities to disguise its origin, before allegedly transferring
it into bank accounts controlled by its members.
The AFP, the ATO and the Australian Securities and
Investments Commission worked together on the 18 month-long investigation.
Investigators have frozen 65 Australian bank accounts
allegedly connected to the syndicate.
They also recovered $1.3 million held in Singapore-based
accounts, along with 12 properties, 17 vehicles, a caravan and a boat worth a
total of $21 million.
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