Solicitor charged for alleged involvement in multi-million fraud scheme

A 32-year-old man was arrested at the scene and taken to Campsie Police Station, where he was charged with:

• Six counts of dishonestly obtaining a financial advantage etc by deception

• Five counts of knowingly dealing with proceeds of crime, and

• Participation in a criminal group contributing to criminal activity.

The unnamed director and principal of a law firm was allegedly assisting the syndicate to help the group purchase multiple mortgaged properties valued at more than $25 million (under the names of various members of the syndicate), and laundered millions of dollars on their behalf.

The arrest forms part of Strike Force Myddleton - an investigation originally launched into a criminal syndicate targeting Sydney automotive financing companies.

Detectives attached to State Crime Command’s Financial Crimes Squad – with assistance from the NSW Crime Commission – initially uncovered that the syndicate was allegedly using stolen personal information to apply for loans through various financial companies to purchase luxury ‘ghost cars’ that did not exist.

However, further investigations have uncovered the syndicate’s reach has extended far beyond car financing. The police alleged it has been orchestrating large-scale personal, business, and home loan fraud against multiple financial institutions.

To date, 24 people have previously been charged under Strike Force Myddleton and remain before the courts and $95 million in assets have been restrained.

Speaking of the developments in Strike Force Myddleton, Commander of the Financial Crimes Squad, Detective Superintendent Gordon Arbinja, said: “Strike Force Myddleton began by targeting those directly involved in fraudulent car-financing activity, and as the investigation progressed, we identified the individuals sitting at the top of the syndicate.

“To date, we’ve charged mules, facilitators, and financial professionals – including bankers – who played a role in enabling this criminal network.

“This arrest is the first professional facilitator in a legal capacity charged under this strike force, and it sends a clear message that no role or qualification places anyone above the law.

“Our investigators will continue to target individuals who abuse their professional standing to support criminal networks, and the community can expect further arrests of this nature as inquiries progress.”

NSW Crime Commission Executive Director Darren Bennett said the NSWCC continues to work closely with State Crime Command to ensure the ongoing success of Strike Force Myddleton.

"The Commission is drawing on its full range of capabilities to drive further arrests and return criminal proceeds to the people of NSW,” Bennett said.

“[This] arrest is another strong result, and we commend the Financial Crime Squad for their work.”

Strike Force Myddleton will continue to “focus on the professional facilitators who use their trusted positions to enable organised criminal activity”.

The arrest comes as regulators, police, lenders and members of the finance industry - including broking - work to determine the extent of mortgage fraud perpetrated by criminals, with a particular focus on criminal financing.

The Commonwealth Bank of Australia recently self-reported potential mortgage fraud estimated at around $1 billion, which is now under investigation by the Australian Securities and Investments Commission (ASIC).

Reports suggest the lender identified issues in home loan applications submitted through both brokers and introducers.

Separately, National Australia Bank uncovered around $150 million in suspected fraud linked to an operation known as the Penthouse Syndicate.

It is believed that the solicitor's arrest is tied to the Penthouse Syndicate.

Members of the broking industry are also investigating allegations of loan fraud committed by, or perpetrated through, the broker channel. However, several groups to date have flagged that several issues raised so far seem to involve fraudulent documentation provided by third-party referrers.