Media Release
Six people jailed over $10 million tax fraud
Six people have been sentenced to a combined maximum term of 43 years’ imprisonment for their part in a $10 million tax fraud and money laundering operation.
Operation Bordelon was a coordinated investigation of a serious organised criminal syndicate allegedly using labour hire and payroll companies associated with the building and construction industry to defraud the Commonwealth.
The joint investigation began in December 2018 as a result of AFP investigators following up intelligence identified in a number of other organised crime investigations. The principals of this syndicate were identified and an innovative whole-of-government approach was adopted to target their criminal activities.
The AFP, the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC) partnered through the Serious Financial Crime Taskforce (SFCT) to target the syndicate, which siphoned off money from companies it dishonestly controlled by failing to remit tax owed to the ATO. The proceeds of that criminal activity were allegedly funnelled into bank accounts controlled by syndicate members and their associates.
The AFP alleged in court the criminal syndicate ran a tiered structure of corporate entities providing labour hire services, which would receive money to pay the wages and tax of workers. The syndicate then siphoned-off money allocated for the Pay-As-You-Go Withholding tax component instead of remitting it to the ATO.
These defrauded funds were then moved to companies directed by syndicate members, their relatives and associates, and offshore to Singapore.
The value of fraud was valued at about $10 million. This comprises tax not remitted to the ATO – essentially money owed to the taxpayer.
After an 18-month joint investigation, the AFP executed search warrants in Queensland, New South Wales and the Australian Capital Territory.
The AFP’s Criminal Assets Confiscation Taskforce also restrained more than $20m in assets as part of activity relating to Operation Bordelon, including properties across QLD, NSW and ACT, luxury vehicles and bank accounts. Those proceedings remain before the court.
These matters were prosecuted by the office of the Director of Public Prosecutions (Cth) (CDPP).
Five of the men were found guilty of one count each of conspiring to cause a loss to the Commonwealth, contrary to sections 11.5(1) and 135.4(3) of the Criminal Code (Cth) and one count of conspiring to deal with proceeds of crime over $1 million, contrary to sections 11.5(1) and 400.3(1) of the Criminal Code (Cth). The sixth man plead guilty to one charge of aid, abet, counsel or procure to cause a loss to the Commonwealth contrary to sections 11.2(1) and 135.1(5) of the Criminal Code (Cth).
The six men were sentenced as follows:
- A 53-year-old man was sentenced to nine years and three months’ imprisonment, with a non-parole period of six years and two months;
- A 66-year-old man was sentenced to eight years’ imprisonment, with a non-parole period of five years and six months;
- A 62-year-old man was sentenced to eight years’ imprisonment, with a non-parole period of five years and six months;
- A 55-year-old man was sentenced to eight years and six months’ imprisonment with a non-parole period of six years;
- A 67-year-old man was sentenced to eight years and six months’ imprisonment with a non-parole period of six years; and
- A 51-year-old man was sentenced to one year and six months’ imprisonment, to be released on 5 August 2025, with a 10 month probationary period to conclude his sentence.
AFP Detective Superintendent Kristie-Lee Cressy said those who sought to exploit and steal from the Commonwealth and by extension, Australian taxpayers, were preventing the potential investment of millions of dollars in essential services and infrastructure for the community.
"The AFP understands the sole purpose of organised crime is to make money, and our best chance to inflict lasting damage on those seeking to accumulate significant wealth at the expense of the Australian community is to target their efforts to legitimise their proceeds of crime," she said.
“Anyone who deliberately sets out to exploit and defraud the financial system is engaging in criminal behaviour. The AFP, through the SFCT, is dedicated to targeting offenders and bringing them to justice.”
ATO Deputy Commissioner and SFCT Chief John Ford welcomed the sentence and commended the cross-agency work that contributed to it.
“The SFCT is equipped with the resources, data-matching capability and relationships to uncover even the most complex tax evasion schemes,” Mr Ford said.
“Illegal phoenix operators gain an unfair advantage by intentionally not meeting their financial, tax or superannuation obligations, disadvantaging honest businesses and the broader Australian community.”
“This is a strong reminder to those involved in illegal phoenix activity - you will get caught. We will continue to chase phoenix operators despite their efforts to conceal activities and we will hold them to account,” Mr Ford said.
The SFCT is an ATO-led joint-agency taskforce established on 1 July, 2015. It brings together the knowledge, resources and experience of relevant law enforcement and regulatory agencies to identify and address the most serious and complex forms of financial crime. Since 1 July, 2015, the Taskforce efforts have resulted in:
- The completion of 2268 audits and reviews, with 76 audits and 341 reviews completed during the 2023-24 year.
- 46 individuals have been convicted and sentenced with sentences ranging from 3 months to 15 years custodial and non-custodial sentences.
- The Taskforce has raised tax liabilities of over $2.552b and cash collections of over $1.022b.
- Over $307m in assets have been restrained or frozen through debt recovery activities.
- Since 1 July 2019, just over $34.23m has been restrained through proceeds of crime actions by the AFP, and $1.3m by ACT Police.
