Project Wickenby dismantles $100 million money laundering scheme

The Australian Federal Police (AFP) today arrested and charged a 58-year-old man over a $100 million offshore money laundering scheme, the third major arrest by members of the Project Wickenby taskforce.

Federal agents arrested the man in Perth this morning, while search warrants were also executed in Sydney, Vanuatu and New Zealand.

The Australian expatriate from Vanuatu will appear in the Perth Central Law Courts today, where authorities will ask for his extradition to face three fraud and money laundering charges in Sydney.

In cooperation with the AFP, law enforcement authorities in Vanuatu and New Zealand have also taken action to close down a number of separate multi-million dollar money laundering schemes operating between the countries.

AFP Manager Economic Warren Gray said today's arrest showed that Australian authorities are serious about tackling money laundering linked to organised criminal activity, including major tax evasion.

"Our investigation has identified a number of offshore money laundering schemes, through which Australian earnings are transferred to overseas financial institutions, claimed as a business expense and later returned to Australia in the form of an interest-free loan," Commander Gray said.

"We continue to work closely with our partner agencies in New Zealand and the Vanuatu Police Force to identify trans-national crime and prosecute those people responsible."

The AFP investigation began following a referral in 2006 from the Australian Tax Office (ATO), which is investigating offshore tax evasion schemes.

It will be alleged that in excess of $100 million has been moved through foreign accounts since 2000. In relation to the three charges laid against the 58-year-old man, the total amount of unpaid Australian tax will allegedly exceed $13 million. It is alleged he earned $1.4 million in commissions from the scheme.

This investigation is one of several being conducted as part of Project Wickenby, Australia’s largest-ever tax fraud investigation.

Project Wickenby is a whole-of-government taskforce set up in 2006 to investigate tax avoidance, tax evasion and large-scale money laundering.

Commander Gray warned there would be many more prosecutions to come as a result of the Project Wickenby taskforce.

“To date the AFP has executed 159 search warrants and issued 82 notices under proceeds of crime legislation," he said.

The Tax Office is conducting 80 audits examining schemes linked to Vanuatu and has already identified over $90 million in allegedly false deductions.

The five key Project Wickenby agencies, the ATO, ACC, AFP, the Australian Securities and Investments Commission (ASIC) and the Commonwealth Director of Public Prosecutions (CDPP) are closely supported by the Australian Government Solicitor and the Australian Transaction Reports and Analysis Centre (AUSTRAC) which provided valuable financial intelligence towards this operation.

The 58-year-old man has been charged with conspiracy to defraud, contrary to section 86(2) with section 29(D) of the Crimes Act 1914, conspiracy to defraud – causing a loss to the ATOcontrary to section 135.4(3) of the Criminal Code Act 1995 and money laundering valued at more than AUD$1 million contrary to sections 11.5(1) with section 400.3(1) of the Criminal Code Act 1995.

These offences carry maximum penalties of 10 years and 25 years imprisonment.