New South Wales police have arrested a former banker, alleging he was a key figure in a sophisticated criminal syndicate responsible for orchestrating more than $105 million in fraudulent loans.
Strike Force Myddleton Uncovers Vast Fraud Network
The arrest is the latest development in Strike Force Myddleton, a major investigation launched last year into a syndicate targeting financial institutions. Police allege the group used stolen personal information to apply for loans to buy non-existent luxury vehicles, known as 'ghost cars', from automotive financing companies in Sydney.
"Further investigations uncovered the syndicate’s reach extended far beyond car financing," police stated. The group is accused of moving on to orchestrate large-scale personal, business, and home loan fraud against multiple banks and lenders.
Insider Knowledge Exploited for Major Fraud
Investigators identified a third alleged ringleader: a 34-year-old licensed mortgage broker who had previously been employed by two major banks. Police claim the man exploited his position within the banking sector to recruit corrupt brokers and bankers.
"These insiders allegedly facilitated fraudulent home and business loans for syndicate ‘mules’, valued at more than $105 million," police said. The syndicate's method relied on using these 'mules' – individuals whose identities or credentials were used to submit the fake applications.
To date, twenty people have been charged under the strike force and remain before the courts. Authorities have already restrained $92 million in assets connected to the alleged crimes.
Major Haul in Police Raids
On Wednesday, police executed search warrants at a home in Dundas Valley and a safe deposit box facility in Sydney’s CBD. It was there they arrested the 34-year-old alleged ringleader.
During the raids, officers seized a significant cache of evidence and luxury items, including:
- Electronic devices and documentation relevant to the investigation.
- Luxury watches, shoes, and jewellery worth approximately $260,000.
Police also froze two properties with a combined estimated value of more than $3.5 million.
Facing 89 Fraud-Related Charges
The man was taken to Gladesville Police Station and hit with a staggering 89 offences. The charges relate to fraud worth $105 million against three major banks, along with recklessly dealing with the proceeds of crime and knowingly directing the activities of a criminal group.
He was refused bail and is scheduled to appear in Burwood Local Court on Thursday. The ongoing investigation by Strike Force Myddleton continues.
