Underworld figure Mick Gatto and his wife Cheryl have been arrested following an early morning police raid on their coastal mansion, as part of an anti-corruption task force operation targeting the construction industry.
Detectives from Taskforce Hawk, the specialised Victoria Police squad tackling construction industry corruption, stormed the couple's Mount Martha home on Wednesday morning to execute a search warrant.
According to a police spokeswoman, the dramatic dawn raid stems from a "current investigation into alleged financial offences".
"Two people at the address, a man and a woman both in their 70s, were arrested and are being interviewed by police," the spokeswoman said. "Both have been released pending further enquiries. Police also seized a number of items including electronic devices, and two controlled weapons including a baton and knife."
The investigation, which commenced earlier this year, remains ongoing. No charges have been laid.
The arrests come on the heels of a damning report into the building sector and the Construction, Forestry and Maritime Employees Union (CFMEU). Authored earlier this year by Geoffrey Watson SC, the inquiry levelled explosive allegations explicitly branding Mr Gatto as a "malignant influence" on the industry.
Mr Gatto has fiercely maintained his innocence, previously claiming his only role was acting as a mediator between builders and unions. "I don't know where it comes from," Mr Gatto said in a recent Channel 10 interview, hitting back at the scrutiny. "I think maybe they've got all these imbeciles that were involved in the unions, got thrown out, and they make all these allegations or whatever and come up with all this nonsense. If you can produce one iota of any evidence that I have done something wrong within that … I'll bow my head."
The 70-year-old has long argued that his notorious past makes him an easy target for investigators, even inviting authorities to try and track down any illicit cash. "I'm the biggest scapegoat in town … I've got a reputation because they've got me branded as an underworld figure," Mr Gatto said.
The Mount Martha raid follows an intensification of multi-jurisdictional law enforcement efforts targeting the building industry. In March last year, the Australian Federal Police raided the offices of Mr Gatto's accountant, Charles Pellegrino, as part of a separate probe into an alleged criminal conspiracy involving "corrupting benefits" used to sway union officials.
