The law has caught up with fraudsters who siphoned millions from taxpayers.

Six people have been sentenced to a total of 43 years in prison for their involvement in a $10 million tax fraud and money laundering operation targeting Australia’s tax system. 

The convictions follow an intensive investigation, Operation Bordelon, led by the Australian Federal Police (AFP), the Australian Taxation Office (ATO), and the Australian Securities and Investments Commission (ASIC).  

The scheme centred on labour hire and payroll companies within the construction industry. Authorities found that the group diverted funds meant for workers’ taxes under the Pay-As-You-Go (PAYG) withholding system into personal and offshore accounts, including in Singapore. 

The investigation began in late 2018, sparked by intelligence linked to other organised crime operations. 

It employed a whole-of-government strategy to dismantle the syndicate, which the AFP described as operating a “tiered structure” of companies. 

These businesses were set up to channel funds illicitly by misrepresenting tax obligations and hiding proceeds through a web of entities directed by syndicate members and their associates.  

After an 18-month probe, law enforcement executed search warrants across Queensland, New South Wales, and the Australian Capital Territory. 

During the operation, the AFP’s Criminal Assets Confiscation Taskforce restrained over $20 million worth of properties, luxury cars, and bank accounts linked to the syndicate. 

While the criminal proceedings are now concluded, legal processes concerning the seized assets remain active.  

Sentences for the offenders varied, with the most significant penalties reserved for the scheme's leaders. 

The longest sentence was nine years and three months, while the shortest was 18 months, to be followed by a probationary period after the offender’s release in mid-2025.  

AFP Detective Superintendent Kristie-Lee Cressy noted that organised crime is fundamentally profit-driven, stating that the AFP's best weapon is to “target their efforts to legitimise their proceeds of crime”. 

She also pointed out the societal harm caused by defrauding taxpayers, noting that such actions “prevent potential investment in essential services”.  

ATO Deputy Commissioner John Ford highlighted the effectiveness of the Serious Financial Crime Taskforce (SFCT) in uncovering even the most intricate tax evasion schemes. 

He warned those engaged in illegal phoenix activities - where companies are intentionally liquidated to avoid debts - that “you will get caught” and held to account.  

Since its establishment in 2015, the SFCT has raised over $2.5 billion in tax liabilities, collected more than $1 billion in cash, and restrained over $300 million in assets. 

Its efforts have resulted in 46 convictions, with sentences ranging from months to over a decade.  

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