Six individuals have been sentenced to a combined total of 43 years in prison for their roles in a $10 million tax fraud and money laundering operation targeting the Australian Taxation Office (ATO).
The scheme, uncovered during Operation Bordelon, involved a criminal syndicate exploiting labour hire and payroll companies in the building and construction sector to withhold taxes owed to the Commonwealth.
Key Findings:
- The syndicate operated a tiered corporate structure, pocketing Pay-As-You-Go Withholding (PAYGW) tax meant for workers’ wages.
- Stolen funds were funneled into accounts controlled by syndicate members, their associates, and offshore entities in Singapore.
The Investigation
Launched in December 2018, the joint effort by the Australian Federal Police (AFP), ATO, and ASIC—through the Serious Financial Crime Taskforce (SFCT)—leveraged intelligence from other organised crime probes.
After an 18-month investigation, authorities executed search warrants across Queensland, New South Wales, and the ACT, confiscating over $20 million in assets, including luxury properties, vehicles, and bank accounts.
Sentences:
The six offenders, aged between 51 and 67, faced charges of conspiring to cause financial loss to the Commonwealth and dealing with proceeds of crime. Sentences ranged from one year and six months (with probation) to over nine years, with non-parole periods between six and 10 months.
Authorities’ Response:
AFP Detective Superintendent Kristie-Lee Cressy condemned the group’s actions:
“Organised crime’s sole aim is profit. Targeting their financial activities is our strongest weapon to protect the Australian community.”
ATO Deputy Commissioner and SFCT Chief John Ford highlighted the task force’s commitment:
“This case sends a clear message: illegal phoenix operators and tax evaders will be found and held accountable. Complex schemes don’t escape our scrutiny.”
Impact on the Community:
The fraud siphoned millions from taxpayers—funds that could have been invested in vital services and infrastructure. The successful operation underscores the government’s resolve to dismantle financial crimes that harm honest businesses and communities.
Authorities continue to pursue further legal action and asset confiscation related to the operation.
