An Israeli national was sentenced yesterday (17 September, 2026) by the NSW District Court for dealing with more than $50 million of criminal proceeds linked to an online investment scam which defrauded more than 1000 victims.
The 56 year old from Sydney was sentenced to 14 years’ imprisonment, with a non-parole period of nine years.
The sentence is one of the first significant prosecutions under Australia’s proceeds of general crime money laundering provisions, introduced through the 2021 Economic Disruption Act reforms.
In May 2026, the man was found guilty in the NSW District Court of one count of dealing with money or other property reasonably suspected of being proceeds of crime, contrary to section 400.2B(3) of the Criminal Code (Cth).
Between June and November 2023, the man used a network of shell companies to conceal and transfer funds generated through fraudulent online investment schemes.
The offending was linked to scams that targeted more than 1000 victims across Australia and overseas, with reported losses exceeding $50 million.
The investigation by the AFP-led Joint Policing Cybercrime Coordination Centre involved extensive cooperation with domestic and international law enforcement agencies, financial institutions, payment service providers and cryptocurrency businesses, to trace funds through complex financial networks.
AFP Detective Superintendent Marie Andersson said the AFP was relentless in targeting criminals who enabled or facilitated scam networks, particularly those targeting Australians.
“This was sophisticated, large-scale offending which enabled the movement of more than $50 million linked to scam activity, which caused devastating losses to more than 1000 victims,” Det Supt Andersson said.
“Behind these figures are real people who have suffered significant financial loss and emotional harm as a result of calculated and sophisticated criminality.
“The scammers behind these crimes often believe layers of companies, financial transactions and international money movements will shield them from detection. This is not the case.
“Behind every dollar laundered is a victim who has suffered financial loss, emotional distress and, in many cases, significant disruption to their lives.
“Investment scams are designed to exploit trust at scale, by using highly convincing online platforms, false promises of increased returns and sophisticated tactics to deceive victims into handing over their money.
“The AFP, together with our domestic and international partners, will continue to identify, disrupt and prosecute those who enable criminal networks to operate, regardless of where they are located.”
Anyone who believes they have been a victim of an investment scam is encouraged to report the matter via ReportCyber.
