Four people have been sentenced by the District Court of NSW for their roles in a two-year, $10.7 million fraud that used labour hire and payroll companies linked to the building and construction industry.
A joint AFP and ATO investigation, under the Serious Financial Crime Taskforce and known as Operation Bordelon, began in December, 2018, following intelligence identified in multiple criminal investigations.
The court heard that four individuals were part of a sophisticated money laundering and tax evasion scheme, which ran from July 2018 to July 2020 and diverted $10.7 million in PAYG withholding from labour hire services.
These funds were siphoned to companies directed by other syndicate members, their relatives and associates, and offshore.
Twenty-five search warrants were executed in NSW, Queensland and the ACT in July, 2020, resulting in the restraint of 17 luxury vehicles, 12 properties, and 65 bank accounts. The four were subsequently arrested and charged.
A Merrylands woman, 36, pleaded guilty on 10 March, 2025, to one count of negligently dealing in proceeds of crime valued at $100,000 or more, contrary to section 400.4 of the Criminal Code (Cth). She was sentenced on 13 August, 2026, to 17 months’ imprisonment, to be released immediately on a 17-month Recognisance Release Order.
A Merrylands man, 29, pleaded guilty on 10 March, 2025, to one count of negligently dealing in proceeds of crime valued at $1 million or more, contrary to section 400.3 of the Criminal Code (Cth). He was sentenced on 13 August, 2026, to two years’ imprisonment, to be released immediately on a two-year Recognisance Release Order.
An Earlwood woman, 56, was found guilty by a jury on 9 December, 2025, of one count of negligently dealing with proceeds of crime valued at $1 million or more, contrary to section 400.3 of the Criminal Code (Cth). She was sentenced on 24 June, 2026, to a community corrections order for a period of two years’ and six months.
A Chester Hill man, 48, was found guilty by a jury on 9 December, 2025, of:
- One count of recklessly dealing with proceeds of crime valued at $100,000 or more, contrary to section 400.4 of the Criminal Code (Cth); and
- One count of procuring another person to deal with proceeds of crime valued at $100,000 or more, contrary to section 400.4 of the Criminal Code (Cth).
He was sentenced to three years’ imprisonment on 1 April, 2026.
AFP Detective Superintendent Peter Fogarty said the criminal groups that exploited payroll systems and tax obligations gained an unfair advantage at the expense of every Australian.
“This two-year scheme robbed the taxpayer of $10.7 million – money that would have had a direct impact on the Australian community,” Det Supt Fogarty said.
“Anyone who thinks they can cheat the tax system is mistaken. Your actions, no matter how complex or elaborate, can always be traced, and the AFP and its partners have the resources to identify and apprehend you.
“This result is a testament to the commitment, tenacity, and expertise of our investigators and the strength of the AFP together with the Serious Financial Crime Taskforce.”
ATO Acting Deputy Commissioner Pennie Snowden said financial crime took many forms, from illicit business structures to offshore arrangements and money laundering, with the ATO actively targeting perpetrators and disrupting these schemes at every stage.
“Serious financial crime undermines the level playing field for honest taxpayers and businesses. Addressing this behaviour is essential to safeguarding one of Australia’s greatest assets, the tax and superannuation system,” Ms Snowden said.
“The Serious Financial Crime Taskforce brings together the expertise and capabilities needed to respond to complex financial crime, ensuring a coordinated and effective approach across agencies.”
